Last week, the Tax Foundation released a paper titled, “Reexamining the Tax Exemption of Municipal Bond Interest,” which argued that lawmakers should consider reforming the current tax treatment of municipal bond...
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Wisconsin Introduces Bill to Create New Upper Income Tax Bracket
Introduced October 28, Wisconsin Assembly Bill 343 would create a new 8.75 percent tax bracket for income earned above $1 million. From the bill:
For taxable year 2012 and thereafter, this bill creates a sixth bracket with a taxation rate of 8.75 percent. For single individuals, certain fiduciaries, and heads of households, this bracket applies to taxable income exceeding $1,000,000. For married persons, this bracket applies to taxable income exceeding $1,000,000 for joint filers and $500,000 for separate filers. This bracket is indexed for inflation.
22 Assembly members signed on as sponsors of the bill, and 8 signed on as co-sponsors. The bill, which has been talked about since early October, would also authorize the Wisconsin Technical College System Board to fund grants for technical degrees. The bill states that these grants will "assist in reducing unemployment."
Wisconsin's individual income tax currently has five brackets for people filing as singles:
4.6% > $0
6.15% > $10,180
6.5% > $20,360
6.75% > $152,740
7.75% > $224,210
In 2011, Wisconsin ranked 40 overall in the Tax Foundation's State Business Tax Climate Index. Their worst score in the five subindices that make up the index was in the individual income tax category.
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