Under a GOP budget proposal advanced this week, individuals earning between $38,000 and $67,000 would see an average tax cut of $400 per year, and retirees’s first $24,000 in earnings would be exempt from income taxes, according to the Wisconsin State Journal.
The budget would also expand the top end of Wisconsin’s second-lowest tax bracket, which currently applies to individuals making $14,320 to $28,640 per year or married couples earning $19,090 to $38,190. The bracket is taxed at a rate of 4.4%.
The Republican proposal would extend that rate to individuals making up to $50,480 and couples filing together who earn up to $67,300. Married couples filing separately would stay in the bracket until their earnings hit $33,160.
The proposed change would affect around 1.6 million state residents and reduce Wisconsin’s income tax collection by roughly $1.3 billion over two years. The proposal is not final and will need a full vote in both houses of the Legislature, as well as the signature of Democratic Gov. Tony Evers, before it becomes law.
