Wisconsin Plan To Reduce Budget Surplus Would Cut Income Taxes By $1.2 Billion, Average $200 Annually Per Taxpayer
It's a good problem. The State of Wisconsin is facing an estimated $7 billion budget surplus, which has forced lawmakers into action to come up with plans for what to do about it.
One of those plans could have a payoff for state taxpayers. A big payoff.
Wisconsin taxpayers could see a reduction in their yearly tax bill in the coming years. A proposal that's currently making the rounds at the state capitol in Madison would reduce the overall tax burden for state residents to bring down the estimated $7 billion budget surplus the Badger state faces.
Wisconsin Governor Tony Evers has announced a plan to bring about a focused $1.2 billion reduction in the amount of income tax paid by state residents over the next two year period. According to estimated numbers shared in an article in the Superior Telegram [paywall], most low and middle income residents - approximately 1.9 million filers - would see an average reduction by $200 in each of the years.
The reduction proposal comes as Evers defiance of the Republican-proposed flat tax system. Under that proposal, every Wisconsin taxpayer - no matter how much or how little they make - would pay 3.25% in taxes on their income. Evers has stated that he will veto any flat tax proposal that makes it to the Governor's desk, suggesting that it doesn't benefit low and middle-income residents.
In addition to the plan to reduce income tax for low and middle-income earners, the Governor is also proposing a wide range of other items. Some of the highlights of those include:
- Increasing the federal Earned Income Tax Credit to more than $300 annually
- Enhancing the Homestead Tax Credit, increasing eligible household income to $35,000
- Creating a Caregiver Tax Credit
- Expanding the Child and Dependent Care Tax Credit from 50 to 100% of the federal credit in 2023
The full proposal issued by the Governor is available for review online.