MADISON – Members of the budget-writing Joint Finance Committee (JFC) announced $4.4 billion in tax cuts on Thursday, $3.5 billion of which would come from an income tax cut. The proposal would reduce the top individual income tax rate from 7.65 percent to 6.5 percent. Additionally, it would combine the middle brackets at a rate of 4.4 percent and reduce the lowest bracket to 3.5 percent.
Following the announcement, Wisconsin Manufacturers & Commerce (WMC) Director of Tax, Transportation & Legal Affairs Evan Umpir released the below statement:
“WMC and our members applaud Republican legislators for proposing to significantly reduce and flatten the state’s individual income tax. Specifically, this plan would help move Wisconsin outside the top 10 highest income tax states – making Wisconsin a more attractive place for employers and workers alike.
“While the proposed changes to the individual income tax are meaningful, Wisconsin would continue to have the second highest top income tax rate in the Midwest. We hope this is a first step in putting our income tax on a path to be competitive with our neighboring states like Illinois, Indiana, Iowa, Michigan and Ohio – all of which have or will have an income tax rate below five percent.
“We urge bipartisan support of this proposal in the legislature and hope Gov. Evers will sign it into law.”