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Do income tax cuts proposed in the Wisconsin state budget benefit richer people the most?

By Tom Kertscher
YES

The 2023-25 Wisconsin state budget would reduce income tax rates in all brackets and taxpayers with the largest incomes would get the largest share of the $3.5 billion reduction.

The budget, approved by the Legislature, is awaiting action by Gov. Tony Evers.

The largest reduction, from 7.65% to 6.5%, is for the highest-income bracket — individuals earning over $304,170 annually. 

The middle-income brackets, 5.3% and 4.65%, would both be reduced to 4.4%. 

The smallest reduction, from 3.54% to 3.5%, would go to the lowest bracket: income below $13,810.

The average savings for tax year 2023 for those earning less than $100,000 a year would be $155. Those earning $1 million or more would save an average of $30,286.

Wisconsin’s rate for the top-income bracket is nation's 10th highest; its bottom-income bracket is the 14th highest rate, according to the University of Wisconsin-Madison Center for Research on the Wisconsin Economy.

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Wisconsin Watch, the news arm of the nonpartisan, nonprofit Wisconsin Center for Investigative Journalism, increases the quality and quantity of investigative reporting in Wisconsin, while training current and future investigative journalists. Its work fosters an informed citizenry and strengthens democracy.
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