Instead, the governor has said his budget will include a $600-million income tax cut for lower- and middle-income taxpayers. We should continue to have a progressive tax system.”Ī flat tax would give “tax breaks to people that, frankly, are our highest-income folks,” Evers added. “I believe that targeting the middle class is where we should be. Tony Evers, who will recommend his own two-year state budget in February, has called a flat tax proposal a “non-starter.” Evers can veto all or parts of the Republicans’ budget. “I don’t see that as something that I could support,” Evers told an Associated Press reporter. Republican legislators, who will draft their 2023-25 state budget over the next six months, could add phase-in of a flat income tax to their budget.īut Democratic Gov. That means, if Wisconsin adopted a Illinois-like flat tax of 4.9%, taxpayers in the two lower brackets would see a tax increase. Wisconsin now has four tax rates – 3.54%, 4.65%, 5.3% and 7.65% – depending on the taxpayer’s Adjusted Gross Income (AGI) and filing status. “When you find out that it’s significantly cheaper for someone to live in Florida, Arizona, Tennessee or Texas, we certainly can deal with the tax climate to try to keep more of those people in Wisconsin,” Vos told WPR. In a Wisconsin Public Radio (WPR) interview, Assembly Speaker Robin Vos said a flat tax would make Wisconsin more competitive. In November, the state Department of Administration estimated that it will bring in $9.6 billion in the year ending June 30 – almost half of the $19.6 billion to be collected in general-fund taxes.
They say it would help small businesses whose owners pay personal income taxes – often at the highest rate of 7.6% – on company profits. According to the nonpartisan Legislative Fiscal Bureau, Wisconsin’s net effective income tax rate was 4.27% in 2020.Ī flat income tax would dramatically reduce the state’s largest source of revenue. Rob Brooks are sponsoring a bill that would adopt a 3.25% flat tax by 2026. Senate Majority Leader Devin LeMahieu and Rep.
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