Wisconsin Passes Budget, Billions in Tax Cuts for Middle Earners

Wisconsin Gov. Tony Evers (D) signed a two-year state budget that includes more than $600 million in annual tax cuts for middle-income earners and retirees, among other tax changes.

Evers enacted the budget legislation (Senate Bill 45) early Thursday after it passed 59-39 in the state Assembly and 19-14 in the state Senate. The tax cuts are the result of a previous agreement between Evers and the Republican-controlled legislature to expand the amount of income that qualifies for the state’s second-lowest income tax bracket of 4.4%. Joint filers making up to $67,300 will qualify for the tax bracket. Single and head-of-household filers will qualify up to $50,480. Couples filing separately will qualify up to $33,650.

• More than 800,000 joint filers would see an average tax reduction of $230, and more than 750,000 non-joint filers would see an average reduction $143 because of the bracket expansion, according to an analysis from Wisconsin’s Legislative Fiscal Bureau.
• The budget also creates a new tax break for people over age 67, allowing single filers in that group to exclude their first $24,000 of retirement income from state taxes and joint filers to exclude the first $48,000.
•  The budget also creates a $5 million tax credit program for film production and eliminates sales tax on household utility bills, a move expected to reduce revenue by $178 million over two years. .