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%).
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