WISCONSIN: Tax Cuts Proposed at the Capitol

May 2, 2023

WISCONSIN: Tax Cuts Proposed at the Capitol

There is good news from the Capitol in Madison as Democrats and Republicans agree on tax reform as a top priority, especially the immediate need to reduce individual income taxes. However, there is also bad news because there is disagreement between the Governor and legislators over proposals that would accomplish meaningful tax reform that would actually result in lower taxes for Wisconsin taxpayers. Governor Evers has proposed what he describes as a 10 percent tax cut “targeted to middle class and working families – not spending big on breaks for the wealthiest 20 percent of earners in our state.” Specifically, the Governor’s budget proposal would reduce taxes by 10 percent for single filers at or below $100,000 in adjusted gross income and married joint filers at or below $150,000. Senator Devin LeMahieu (Oostburg) and Representative Robert Books (Saukville) have introduced legislation that would phase in a flat tax rate for all taxpayers regardless of income. Senator LeMahieu testified before the Senate Committee on Universities and Revenue, “Moving to a 3.5 percent flat tax will provide a tax cut for all Wisconsinites. This proposal will fundamentally transform Wisconsin’s individual income tax and keep more money in the pockets of hardworking Wisconsinites.” Assembly Speaker Robin Vos (Burlington) said, “Although the LeMahieu plan has not been ruled out, it’s not likely going to happen this year. It’s certainly a long-term goal we can all agree with, but won’t force the matter with Governor Evers, given his pledge to veto it.” Representative John Macco (De Pere) has a plan which would provide all taxpayers with significant tax reductions. The bracket reductions would be phased in over a five year plan based on revenue projections to ensure the financial security of the state in an uncertain economy, according to Representative Macco. Tax reform and tax reductions are likely to succeed this session, but legislators will need to find agreement between members of the State Senate and Assembly, and of course, with Governor Evers who will have the final say with his veto or signature.

Topics:

Uncategorized

State:

Wisconsin

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