Wisconsin GOP Unveils Sweeping Middle-Class Tax Cut Proposal

MADISON, WI -- Assembly Republicans announced a new plan to help reduce the tax burden for middle-class Wisconsin residents during a Thursday announcement.

The proposal, unveiled at the Wisconsin State Capitol building 10:30 a.m. Thursday in the Assembly Parlor uses the state's budget surplus of nearly $600 million , while delivering on Gov. Tony Evers’ middle class tax cut aims, Republican legislators say.

The proposal would reduce individual income tax collections by an estimated $490.2 million in the 2020-21 budget cycle, according to the State Legislative Fiscal Bureau.

“Reducing taxes on the middle class is one of several shared priorities that we have with the new
governor,” said Speaker Robin Vos (R-Rochester). “We are carrying through on a bipartisan
objective without raising anyone’s taxes.”

Assembly Republicans say Thursday's proposal mirrors the new governor’s campaign promise to reduce taxes on the middle class. The proposal provides $340 million in tax relief through a targeted cut for individuals making less than $100,000 and families making $150,000 or less.

Officials say the median income family filing jointly will see a $310 reduction in net taxes, a 10.6 percent reduction in their tax liability. “The budget surplus that we created over the last eight years is making this tax cut possible for nearly 2 million tax filers,” said Rep. Jim Steineke (R-Kaukauna). “Thanks to good budgeting and pro-growth reforms, personal incomes and state revenues are up.”

The targeted cuts will be made through an increase in the standard deduction or tax-free income
on state tax returns. With this change, Wisconsin will have one of the most generous standard
deductions in the country, Republican officials say.

“Wisconsin is in a good place: we have a budget surplus and revenue estimates remain
consistently strong,” said Rep. John Nygren (R-Marinette). “We will continue to be responsible stewards of taxpayer dollars and return a budget surplus every time we can.”

Assembly Republicans are working with their Senate colleagues to finalize the proposal with the
hope to introduce the legislation next week. The tax cut is intended to take effect in 2020.

Patch File Photo by Scott Anderson