Republicans Advance Income Tax Cut

From the article:

State lawmakers are advancing a proposal to cut nearly $3 billion in income taxes over two years.

But Democratic Gov. Tony Evers calls the proposal fiscally irresponsible and promises to stop the bill from becoming law.

A recently-introduced Assembly Bill would expand retirement tax breaks for Wisconsinites who are at least 67 years old, to exempt up to $100,000 in retirement income for single filers and up to $150,000 for joint married filers. It would also cut the tax rate for Wisconsin’s third income tax bracket from 5.3 to 4.4 percent starting in the 2023 tax year.

That third bracket covers individuals with between $27,630 and $304,170 in annual taxable income, as well as joint filers who make between $36,840 to $405,550.

Effectively, the proposed changes would bring the tax rate for Wisconsin’s third tax bracket to the same level as what’s currently levied against Wisconsin’s second tax bracket, which covers individuals with $13,810 to $27,630 in annual income.

The median household income in Wisconsin is about $67,000 a year, according to 2021 data from the U.S. Census Bureau.

Republicans like state Rep. John Macco of Ledgeview say the cuts would make Wisconsin competitive with other states while bringing relief to the middle class.

“100 percent of this money is going to folks that need it the most,” Macco, who chairs Wisconsin’s Assembly Committee on Ways and Means, said of the proposal.

The bill would lead to tax decreases for about 1.7 million filers in 2023, with an average cut of $772, according to the Legislative Fiscal Bureau.

Evers, however, says the bill would jeopardize “priorities like public schools, child care, public safety, and fixing our roads and bridges.” He promised to veto it if it clears the Republican-controlled state Legislature.

“I’m not going to sign an irresponsible Republican tax cut that jeopardizes our state’s financial stability well into the future and the investments we need to be making today to address the real, pressing challenges facing our state.” Evers posted to social media on Wednesday.

Wisconsin is projected to end the two-year budget cycle with a $4 billion surplus, and Republicans want much of that money to go to tax cuts.