Wisconsin Governor Walker Proposes Income Tax Reduction February 27, 2013 Joseph Bishop-Henchman Joseph Bishop-Henchman 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%). Stay informed on the tax policies impacting you. Subscribe to get insights from our trusted experts delivered straight to your inbox. Subscribe Share Tweet Share Email Topics Center for State Tax Policy Wisconsin Individual Income and Payroll Taxes
