MADISON – The state’s chamber of commerce and largest business association Tuesday announced it supports a larger income tax cut proposed by Assembly leaders.
“Wisconsin is making improvements in our business climate, but businesses consistently cite high taxes as a problem in our state,” said Jason Culotta, WMC director of tax and transportation policy. “Our members consistently say that cutting taxes will improve our business climate and help individual businesses grow and create jobs.”
Earlier this year, Governor Scott Walker proposed cutting three of the five income tax rates in Wisconsin. Wisconsin Manufacturers & Commerce (WMC) has 3,500 members who employ about 500,000 workers in the state.
The proposal unveiled today at the Capitol would cut all five income tax rates. Under current law, Wisconsin’s married couples income tax starts at 4.6 percent for incomes up to $14,150 and tops out 7.75 percent for incomes higher than $319,460. Those rates would be cut to 4.5 percent on the low end, and 7.6 percent on the high end. By 2015, most middle income taxpayers would pay a 5.94 percent income tax rate.
“This is a significant step in the right direction towards improving our tax burden,” Culotta said. “Businesses have a difficult time recruiting top talent into our state because high level employees get sticker shock from our income tax compared to states like Florida and Texas that have no income tax. Income tax cuts are very important to employers because thousands of businesses pay their income taxes based on the individual income tax rates.”
The tax cut proposal was developed and proposed by Representative Dale Kooyenga (R-Brookfield), a member of the powerful Joint Finance Committee.
“Wisconsin’s business climate has improved dramatically in the last couple of years with lawsuit reform, regulation relief, government union reforms and tax cuts, and now we need to keep pressing forward to lower the tax burden,” Culotta said. “This plan simplifies and flattens our tax rates and that’s good for job creation and economic growth.”
The tax cut plan will be considered in the Joint Finance Committee as part of the two-year state budget.