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 taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. , 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%).
Share this article