Wisconsin Governor Walker Proposes Income Tax Reduction

 
 
February 27, 2013

Last week, Wisconsin Gov. Scott Walker (R) released his budget proposal for the next two years, which includes a permanent reduction of the three bottom tax brackets:

Income Brackets for Single Filers

Income Brackets for Joint Filers

Current Rate

Proposed Rate

>$0

>$0

4.60%

4.50%

>$10,750

>$14,330

6.15%

5.94%

>$21,490

>$28,650

6.50%

6.36%

>$161,180

>$214,910

6.75%

6.75%

>$236,600

>$315,460

7.75%

7.75%

The overall reduction is roughly 2.2 percent, totaling $343 million over two years. All taxpayers will pay lower taxes on income up to $161,180 (singles) or $214,910 (joint filers), and the average person would save $83 a year: a modest but probably welcome amount.

Walker already ruled out complete repeal of the state income tax, but that shouldn’t rule out reductions in its burden. The state’s top tax rate of 7.75% is relatively high, beaten only by California (13.3%), Hawaii (11%), Oregon (9.9%), Iowa (8.98%), New Jersey (8.97%), Vermont (8.95%), New York (8.82%), Maine (7.95%), and Minnesota (7.85%).

Buy this blogger a cup of coffee!

Sizes

Follow Us

About the Tax Policy Blog

Subscribe to Tax Foundation - Tax Foundation's Tax Policy Blog The Tax Policy Blog is the official weblog of the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. Our economists welcome your feedback. If you would like to send an e-mail to the author of a blog post, please click on that person's name to locate his or her e-mail address or visit our staff page here.

Monthly Archive

Privacy Policy