Taxpayers should see an average income tax cut of $177 thanks to decisions made by the Republican-led legislature to apply any increase in sales tax revenue from out-of-state retailers and marketplace providers to reduce individual income tax rates.
Wisconsin took in an estimated increase of $257.3 million in sales taxes from online retailers and marketplace providers from October 1, 2019, to September 30, 2020. On Friday, the non-partisan Legislative Fiscal Bureau released estimates for individual tax cuts resulting from the increased sales tax revenue. These tax cuts will help working families.
Governor Evers gave us a budget that spent too much, taxed too much, and borrowed too much. We had to rewrite his budget. We delivered a responsible budget that cut taxes for working families, invested in priorities like education and roads, and used extra revenue to put more money back into the pockets of where it came from – the taxpayers of Wisconsin.
Thanks to our reforms in the state budget and 2019 Wisconsin Act 10, that money will be used to lower the first and second income tax brackets. Beginning with Tax Year 2020, those rates will drop from 4.00% to 3.54% and 5.84% to 4.65% respectively.
Not only did we deliver tax cuts for Wisconsin’s working families, but we also stopped $1 billion in tax hikes that were in the Governor’s budget. His tax hikes combined with his horrendous response to unemployment claims would be devastating for working families in this pandemic.
You can read the memo here.
