State Republicans announce package of tax cut bills

MADISON, Wis. (WMDX) – Wisconsin Republican legislators announced a package of bills that legislative leaders say will cut taxes for state residents.

The bills would modify one of the state’s tax brackets, increase two tax credits, and increase the state’s tax exemption for retirement income, according to a joint release by Wisconsin legislative Republicans.

One of the bills would move the upper limit of the second tax bracket in the state from $38,190 to $150,000. Another would increase the state’s tax credit for children and dependents to fully match the federal credit.

A third bill would nearly double the tax credit for married people, going from $480 to $870. The fourth bill would exempt retirement income from state taxes up to $75,000 per person.

According to the release, the bills will be introduced next week.

In the announcement about their tax cut plan, Republican leaders say the state’s multi-billion-dollar surplus would be used to fund the initiatives.

“Our state’s surplus should be returned to hardworking Wisconsin taxpayers,” Senate Majority Leader Devin LeMahieu said in a release. “Cutting taxes will put more money into family budgets and strengthen Wisconsin’s economy.”

“Everyone in our state needs tax relief, and this package of bills targets each of life’s milestones,” Assembly Speaker Robin Vos said in a release. Vos also criticized Gov. Tony Evers for failing to provide tax relief.

Today, at regional press conferences around WI, Legislative Republicans unveiled a tax plan to return the surplus back to the hardworking taxpayers. The package includes a marriage credit, child and dependent care credit, retirement income exemption, and a middle-class tax cut! pic.twitter.com/PQTSM08YV9

— Speaker Robin Vos (@SpeakerVos) January 23, 2024

“The Governor has told us that $150,000 per year is middle class,” Sen. Howard Marklein, who is the co-chair of the legislature’s Joint Committee on Finance, said in a release. “This is good for families, individuals, workers, retirees and everyone in between.”

“We over-collected taxes and we should give them back to those who overpaid,” Rep. Mark Born, the other co-chair of the JFC, said in a release. “This plan delivers the tax relief our residents need to help with the inflationary pressures they are still facing.”

The package of bills was announced in the release with a simple message – Cut Taxes, Return The Surplus. Republican leaders said that the average tax cut per person for each of the bills would be hundreds of dollars, with the change in the second tax bracket alone resulting in an estimated average cut of $454 per filer.

The changes to the tax credit for children or dependents would have an estimated average cut of $656 per filer, while expanding the married couple credit would amount to an estimated $338 per filer.

Expanding the retirement income exemption would have an average tax cut of $1,582, according to the release.

“I am hopeful that the Governor will work with us to provide significant tax relief to the people of Wisconsin,” Marklein said. “We owe it to our taxpayers to return some of the surplus to them as they continue to weather a difficult economy.”

You can see or download the full release below.