Wisconsin Republicans Introduce Another Package of Tax Cuts

Wednesday, January 24th, 2024 -- 12:00 PM

(Robert D’Andrea, Wisconsin Public Radio) Wisconsin Republicans released a package of tax cuts Tuesday, redoubling efforts near the end of the legislative session to find measures that they say could be signed by Democratic Gov. Tony Evers. 

According to Robert D'Andrea with the Wisconsin Public Radio, the proposals include a broad income tax cut, as well as other tax breaks focused on marriage, childcare costs and retirement income.

Overall, they’d cost an estimated $2.1 billion for the remainder of the state’s current budget and $1.4 billion every year after that. “It focuses on everybody who pays taxes,” said Assembly Speaker Robin Vos, R-Rochester, at a press conference announcing the package.

The largest tax cut would expand the state’s second tax bracket to $150,000 for married couples filing jointly. Currently, the income threshold in that bracket is just over $38,000 for married couples. Families in that bracket pay taxes at a rate of 4.4 percent.

The Legislative Fiscal Bureau estimates that the average tax decrease would be $454 per filer under the plan. Senate Majority Leader Devin LeMahieu said recently he was working on details of a plan to expand the second tax bracket to families making up to $200,000 per year.

LeMahieu joined Vos and other Republicans at the press conference unveiling the latest tax package. Another proposal would expand an existing tax credit for child care so that it covers expenses up to $10,000 for one child or $20,000 for two or more children.

That would result in an estimated tax cut of $656 according to the Fiscal Bureau. The married couple credit would be raised from a maximum of $480 to $870 under another measure. The credit was created in 2001 and would be $870 today if adjusted for inflation, according to the LFB.

The average tax cut would be $338. The retiree tax cut would make income from retirement plans tax free for the first $75,000 for single filers and $150,000 for married couples. It would result in an estimated average decrease of $1,582.

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