More than 2 million taxpayers would see a tax cut from a Republican passed bill in the Wisconsin legislature, according to an analysis from the Center for Research on the Wisconsin Economy (CROWE).
“We find it would reduce taxes for about 2 million taxpayers and reduce state tax revenue by about $200 million, so the reduction per affected taxpayer is about $100,” the CROWE study found. “Low-to-middle-income taxpayers would benefit the most. Moreover, the expansion would reduce the effective marginal tax rates (MTR) and thus provide work incentive for some low-to-middle-income taxpayers, although it would also raise the effective MTR and thus reduce the work incentive for some relatively high-income taxpayers.”
The state Senate and Assembly both passed the tax-cut package last Thursday on largely party-line votes.
Gov. Tony Evers opposed the cuts, but has not said if he will sign or veto the bill.
The state is expected to have a budget surplus exceeding $600 million next year. Republicans want to return some of it to taxpayers, pay down debt and invest in the rainy day fund.
Evers has said he wants to use the surplus to help lower property taxes and spend more on schools.