Marklein Announces Legislature's Plan to Return Surplus to Taxpayers

New Middle-Class Tax Cut, Retirement Income Tax Exemption, Increases for Child Care Tax Credit and Married Couple Credit
 

Madison, WI – Sen. Howard Marklein (R-Spring Green) announced the legislature’s plan to return nearly $2.1 billion to taxpayers. The plan includes a new middle-class tax cut concept initiated by Marklein.

“Wisconsin can afford a significant tax cut. We have nearly $4 billion sitting in surplus after meeting our obligations and funding our priorities in the most recent state budget,” Marklein said. “Our middle-class tax cut answers the Governor’s call. We are cutting taxes for most Wisconsinites. This is good for families, individuals, workers, retirees and everyone in between.”

Marklein’s Middle-Class Tax Cut proposal provides broad-based, middle class tax relief by changing the income levels that are subject to current tax rates. The bill expands the amount of income that is subject to income tax in the 2nd tax bracket which is 4.4% while reducing the amount of income that is subject to tax in the 3rd tax bracket which is 5.30%.

“Governor Evers has said that $150,000 is middle class,” Marklein said. “Our bill moves everyone who makes up to $150,000 into the 2nd tax bracket.  They will now be taxed at 4.4% rather than 5.3%. So, under our bill, a working family making $150,000/yr would see a tax decrease of about $800 per year – and they would see this impact starting this summer!”

The legislature’s plan also includes a retirement income tax exemption and increases for the Child Care tax credit and Married Couple tax credit.

The Retirement Income Tax Exemption bill will exempt Wisconsin retirement income from state income taxes up to $150,000 for a couple. This will return $1,582 per filer on average.

The Child Care tax credit bill increases the credit to 100% of the federal credit and increases the maximum amount of allowable expenses to $10,000 for one child and $20,000 for two or more children. 

Finally, our Married Couple tax credit bill will increase the maximum credit from $480 to $870.

“I am hopeful that the Governor will work with us to provide significant tax relief to the people of Wisconsin,” Marklein said. “We owe it to our taxpayers to return some of the surplus to them as they continue to weather a difficult economy.”