Lawmakers have introduced another tax reduction package, hoping they can convince the Governor the time is right to provide some relief for Wisconsin taxpayers.
Although Governor Tony Evers has rejected previous attempts by the Legislature to enact significant tax cuts, members of the Senate and Assembly have introduced another tax reduction package, hoping they can convince the Governor the time is right to provide some relief for Wisconsin taxpayers.
Although Governor Evers signed into law some modest tax reductions which were included in the 2021 budget, he has since vetoed two Republican-sponsored proposals that would have significantly reduced the individual income tax burden.
The most recent proposal is directed to middle class taxpayers, expands the married couple credit, includes a retirement income exemption from taxes for seniors, and increases the child and dependent tax credit for families being challenged by the cost of child care.
- Reduces the upper individual income tax rate to 4.4% (currently 5.3%).
Average tax savings: $454 per filer
- Increases the amount of credit allowed for child care expenses.
Average tax savings: $656 per filer.
- Increases the married couple maximum tax credit.
Average tax savings: $338 per filer.
The package will lessen the tax burden for taxpayers by over $2 billion, and will impact 1.8 million taxpayers, according to the sponsors of the proposal.
Representative Mark Born (Beaver Dam), Assembly Chair of the Joint Committee on Finance, said, “We over collected taxes and we should give them back to those who overpaid.”
Senate Howard Marklein (Spring Green), Senate Chair of the Joint Committee on Finance, said, “We have nearly $4 billion sitting in surplus. Our middle class tax cut answers the Governor’s call. This is good for families, individuals, workers, retirees, and everyone in between.”
NFIB believes the individual income tax rate reduction will have a positive impact on thousands of small business taxpayers, easing a tax burden that is often cited as a significant barrier to small business creation and growth.
The package will likely soon be acted on by the Legislature and forwarded to Governor Evers for his approval (hopefully).