Director of Tax, Transportation, and Legal Affairs Evan Umpir testified in favor of Senate Bill 435. The bill proposes to lower Wisconsin’s third individual income tax bracket rate from 5.3% to 4.4% (for individuals making between $15,520 – $280,950) and makes tax-free certain qualified requirement income for individuals over 67 years old up to $100,000 ($150,000 married filing jointly or separately). The Assembly version of this bill passed that chamber on a party-line vote of 64-35 with no Democrat support. The Senate is expected to vote on the proposal and advance this bill to the Governor’s desk. In July, Governor Evers partially vetoed a $3.5 billion dollar tax cut affecting all tax bracket rates – most importantly the proposed budget would have lowered the top individual rate from 7.65% to 6.50%, but this portion of the tax cut was vetoed. Governor Evers indicated he will also veto this tax cut proposal. WMC is supportive of the plan because of its impact it would have on the workforce and their decisions whether to seek employment in Wisconsin or a lower tax state.
