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Monday, Jul. 3, 2023

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

Tom Kertscher, Wisconsin Watch
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.

See a full discussion of this at Wisconsin Watch

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