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Historic $3.4 Billion Tax Cut

No budget is perfect, but this one seems to be a good balance of investing in infrastructure, schools, healthcare and higher education, while still providing the largest tax cut in the history of the state. The budget bill passed both houses with bi-partisan support this week and here are a few highlights:

Taxes - These tax cuts are not the usual, temporary kickbacks you've seen in prior budgets. These cuts are permanent, and will have long-lasting, positive results for Wisconsin taxpayers.

  • $2.3 billion income tax cut in the third rate from 6.27% to the smaller 5.3% rate. This will affect married couples earning $31,910 to $351,310 and singles earning $23,930 to $263,480 per year. 
  • Property tax cut: A typical family would save $1,200 in income and property tax relief.
  • Exempts all active-duty military income, spending $40 million over the biennium.
  • Created tax credit for childcare expenses to help get parents back into the workforce. An average tax reduction would be $91 during 2022.
  • Keeping Unemployment Insurance taxes at the lowest level to make sure taxes are not raised on Wisconsin businesses.

Transportation - Borrowing less and investing more.

  • Includes $300 million less than Evers' proposal in new bonding. The debt ratio is estimated to remain flat.
  • Increased funding for local roads and highways by $25 million more than Evers' proposal.

Health

  • $100 million more for nursing home reimbursement rates.
  • $104 million to Direct Caregivers in Family Care.

Education

  • Increase of $2 billion to K-12 schools.
  • Increased special education by 10% or $86 million.
  • Increase in funding of $14.5 million for autism services.

 

Eliminating Personal Property Tax

After the pandemic and Governor Evers’ mandated shutdown, we need to hold down taxes on businesses. We are investing $200 million to ELIMINATE the personal property tax to help businesses, both small and large. The personal property tax is financially burdensome and difficult to comply with. These bills are usually miniscule, and most times the accountant fee exceeds the actual tax bill. The entire process is complicated and time-consuming. Assessing and collecting the tax is also an inefficient use of time and resources for many municipalities when compared to its generated tax revenue. Wisconsinites have been trying to repeal this tax since 1916.

I voted in favor of this budget and I would encourage Governor Evers to sign this sensible proposal.

 

Representative Janel Brandtjen
State Capitol, Room 12 West
PO Box 8952
Madison, WI 53708
Toll-Free (888) 534-0022 or (608) 267-2367
Rep.Brandtjen@legis.wi.gov | |