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Would a proposed flat tax give Wisconsin taxpayers earning more than $1 million a year a $100,000 tax cut?

By Tom Kertscher
YES

The Republican leader of the Wisconsin Senate recently proposed a flat tax that would reap annual savings for millionaires in excess of $100,000.

The proposal would gradually reduce income tax rates until 2026, when a single rate of 3.25% would apply. Wisconsin currently has four brackets: 3.54%, 4.65%, 5.3% and 7.65%.

The Legislative Fiscal Bureau said those making $1 million or more would save an average of $112,167 in 2026. The median tax filer making between $60,000 and $70,000 would get an average tax decrease of $690.

Under the plan, Wisconsin's income tax revenue would drop by $2 billion in the 2023-24 tax year and $5 billion annually by 2026-27, the LFB said.

Gov. Tony Evers, who supports a progressive tax system, has vowed to veto the proposal.

Fourteen states have or are implementing a flat tax, the Tax Foundation reported in November.

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In more than a century of state income taxes, only four states have ever transitioned from a graduated-rate income tax to a flat tax. Another four adopted legislation doing so in 2022, and a planned transition in a fifth state is now going forward under a recent court decision.
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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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