Whether the federal tax code will be reformed and the shape such an overhaul will take is the talk of the town in Washington these days. However, the more immediate tax action is in the states, with two politically and economically important states poised to enact pro-growth tax reform in the coming weeks.
Wisconsin Gov. Scott Walker Set To Cut Taxes Again
Gov. Scott Walker has enacted $5 billion in tax relief since he took office in 2011. In addition to that, Gov. Walker has also saved Wisconsin taxpayers $5 billion through his Act 10 labor reforms. Many politicians would be content to rest on their laurels after such achievements, but Scott Walker is not like many politicians.
Gov. Walker is now proposing to eliminate the state property tax. Repealing the state property tax would save Wisconsin taxpayers more than $180 million over the next two years. In addition to further tax relief proposed by Gov. Walker, other pro-growth tax reforms have been introduced by Wisconsin legislators.
Representative Dale Kooyenga (R), a CPA by trade and one of the top tax policy minds in the Wisconsin legislature, has proposed a series of reforms that would make Wisconsin a more attractive place to live, work, and invest.
Wisconsin currently has a progressive state income tax with four brackets, starting with a bottom rate of 4% and rising to a top rate of 7.65%. Rep. Kooyenga’s proposal would move Wisconsin to a single flat income tax rate of 3.95%. Such income tax relief would greatly increase the disposable income and job-creating capacity of individuals, families, and businesses across Wisconsin.
Rep. Kooyenga’s plan isn’t the only income tax relief measure put forth in the Badger State this year. Gov. Walker, as part of his executive budget, has proposed cutting the bottom two income tax rates, and expanding the size of the second tax bracket by 25%.