Legislative Republicans on Thursday announced plans to use Wisconsin’s unprecedented surplus to implement more than $3 billion in tax cuts.
The Republican-authored plan includes cuts to income and sales taxes, and puts in place plans to eliminate the state’s personal property tax, which applies to businesses. Republicans also said their proposal, which was unveiled on the final day of the committee’s budget deliberations, meets federal guidelines for education spending to allow the state to receive an estimated $2.3 billion in coronavirus stimulus funding.
The GOP proposal would bring down the income tax rate from 6.27% to 5.3% for individuals making between about $24,000 and $263,000 a year. That change would begin with the 2021 tax year and result in about $2.7 billion in savings over the two-year period, Republicans said.
State Department of Revenue Secretary Peter Barca, who was appointed by Gov. Tony Evers, said there was some concern over the tax bracket being targeted by Republicans, which covers married couples who make between about $32,000 and $351,000.
“It’s a very broad bracket,” Barca said. “It’s almost essentially a flat tax when you get to that level.”