Governor Scott Walker has signed another round of tax reductions into law that includes adjustments in the individual income tax withholding brackets.
The legislation passed the State Senate 17-15 and the Assembly by a vote of 61-35.
The adjustment will reduce the amount of state income taxes withheld from earned income by $322 million. For a typical family of four, the withholding change will put an additional $58 in their paycheck every month, or more than $520 in the family budget by the end of the year.
The package also includes over $400 million in property tax reductions, and nearly $100 million in individual income tax cuts, targeted to the lowest income tax bracket.
The legislations increases funding for the Wisconsin Fast Forward program by $35 million directed to five areas:
- Invest in technical colleges to eliminate waiting lists for high demand fields including manufacturing, agriculture, and Information Technology;
- Help high school students get training in high demand jobs through dual enrollment programs between our high schools and technical colleges;
- Support the year of A Better Bottom Line initiative, which helps people with disabilities enter the workforce;
- Allows certain tax credits to be used to offset liability under the alternative minimum tax;
- Authorizes corporate tax filers to carry forward business losses for up to 20 years.