logo
Brief Publisher Logo
FACT BRIEF

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

By Tom Kertscher
View this fact brief on Wisconsin Watch
Copy link
email
Copy featured image
email
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.

Content Image
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.
This fact brief is responsive to conversations such as this one.
Sources
PBS Wisconsin LeMahieu proposes flat income tax rate for Wisconsin by 2026
State of Wisconsin | Department of Revenue Tax Rates
Legislative Fiscal Bureau Individual Income Tax Four-Year Phase-In of 3.25% Tax Rate
AP News Wisconsin Gov. Evers opposes GOP flat income tax cut plan
Tax Foundation States Inaugurate a Flat Tax Revolution
ABOUT THE CONTRIBUTOR
Wisconsin Watch
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.
FACT BRIEF BY
Brief Publisher Logo
Latest fact briefs from Wisconsin Watch
facebook
twitter
email
email
About fact briefs published on Gigafact
Fact briefs are short, credibly sourced summaries that offer “yes/no” answers in response to claims found online. They rely on publicly available, often primary source data and documents. Fact briefs are created by contributors to Gigafact —a nonprofit project looking to expand participation in fact-checking and protect the democratic process. See all fact briefs here.