There are five basic legal forms of business structures found in the United States: C corporations, S corporations, sole proprietorships, partnerships, and Limited Liability Companies (LLCs). In order to understand...
- The Tax Policy Blog
- Wisconsin Introduces Bill to Create New Upper Income Tax ...
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.
Follow Scott Drenkard on Twitter @ScottDrenkard
Subscribe to the Tax Foundation Newsletter
Join the Tax Foundation's fight for sound tax policy Go
About the Tax Policy Blog
The Tax Policy Blog is the official blog 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.