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BREAKING NEWS: A federal appeals court rules 2-1 that subsidies that helped people buy insurance at healthcare.gov are illegal.

WASHINGTON (Reuters) - A U.S. appeals court on Tuesday threw out a federal regulation that implements key subsidies that are vital to President Barack Obama's healthcare overhaul. The U.S. Court of Appeals for the District of Columbia Circuit accepted one of the main legal challenges to the policy by conservatives opposed to an expansion of the federal government. A three-judge panel returned the case to a lower court with instructions to rule in favor of appellants who had sued to overturn t...

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Gov. Walker, GOP Assembly Speaker outline tax cut plan

Wisconsin Governor Scott Walker (R)
Wisconsin Governor Scott Walker (R)

MADISON, WI (WTAQ) - Governor Scott Walker said Tuesday that an estimated $342 million surplus in the current state budget should be given back to the taxpayers.

Walker and Republican Assembly Speaker Robin Vos said they would approve an income tax cut as part of the next state budget to be approved by the end of June.

Walker said on Mike Gousha's statewide TV show that a middle class family can expect a tax cut of around $200. Vos said the total tax cut would be at least $300 to $350 million, spread over the two-year budget period. And the speaker said, “I hope that’s a low end of the number.”

Vos said the first part of the income tax reduction would begin in 2013, and folks would see it on the state tax returns they file in just over a year from now.

Vos said he did not expect any problems balancing the current budget by returning the surplus to taxpayers. He said the state can still afford to provide more money to public schools, and take care of low-income and elderly people in Medicaid health programs.

But Democrats have said any tax cut should be paid for with either new revenues or spending cuts – and low-income people who lost part or all of their earned income tax credit two years ago should be the first to get any surplus.

Democrats, however, don’t have a say – because they don’t have the votes in either house to stop whatever the Republicans and their party’s governor want to do.