NFIB members provided lukewarm support for the creation of a flat individual income tax rate
NFIB members provided lukewarm support for the creation of a flat individual income tax rate, according to the 2023 Wisconsin State Ballot results. A slight majority – 54 percent – said Wisconsin should create a flat rate, 29 percent were opposed, and 18 percent were undecided.
Senae Bill 1, introduced by Senator Devin LeMahieu (Oostburg), and Assembly Bill 1, authored by Representative Robert Brooks (Saukville), would establish a flat rate of 3.25 percent for all incomes by 2026. According to the fiscal analysis prepared by the Department of Revenue, the bill would reduce tax collections by over $5 billion each year when the flat rate is fully implemented in 2026.
The flat tax legislation and proposals that would eliminate the individual income tax altogether are being introduced amid projections of a state revenue surplus of over $7 billion.
Senator LeMahieu said, “Moving to a 3.25 percent flat tax will provide a tax cut for all Wisconsinites, and will provide much needed tax relief for middle class Wisconsinites, and Main Street businesses.”
However, Senate Democrat Leader Melissa Agard (Madison) opposes the flat tax because it is “highly regressive and would overwhelmingly benefit the richest people in the state. Senate Democrats will resoundingly reject this flat tax scheme.”
Meanwhile, over in the Assembly, Speaker Robin Vos (Burlington) said stopping short of a full endorsement, “The flat tax is a good plan and something we will discuss in caucus.”
Governor Tony Evers has made his position clear by promising to veto any flat income tax cut plan approved by the Legislature, favoring instead his plan to reduce taxes for the middle class by 10 percent.
Representative Robert Brooks (Saukville) said Wisconsin’s individual income rates are “uncompetitive and mediocre,” only nine states have an individual tax rate higher than Wisconsin’s top rate. It is well past time that Wisconsin join states like Illinois, Michigan, New Hampshire, and Colorado by moving to a flat tax, according to sponsors of the flat tax legislation.
NFIB will support legislation that will significantly lessen the tax burden on small business, including meaningful reductions in the individual income tax and eliminating the personal income tax.
