Representative Romaine Quinn (R-Barron) joined regional colleagues in announcing a Republican plan to cut income taxes for middle-class earners. The plan would expand the sliding scale standard deduction on income taxes, allowing middle-class families to save more of the money they earn each year.
“Although it was late in the campaign, we take Governor Evers at his word when he said he wanted to work with the Legislature to reduce the tax burden on middle class Wisconsin families. Today’s tax cut announcement mirrors what he promised voters,” said Rep. Quinn. “This is a win for Governor Evers and Wisconsin’s middle class. We hope this will be a bipartisan step that we can continue to build progress on.”
According to the nonpartisan Legislative Fiscal Bureau, under the plan, “the median income family filing jointly would see a $310 reduction in net taxes,” with the goal of providing $340 million in tax relief for middle-class families. The cuts are aimed at individuals making less than $100,000 and families making less than $150,000 annually, which would total nearly 2 million filers in Wisconsin. The largest tax reduction will go to married filers making between $30,000 and $40,000 per year.
The Republican plan pays for the tax cut through the budget surplus generated this budget cycle. While new surplus projections are expected to be announced next week, they are anticipated to remain strong. Governor Evers had campaigned on paying for the cut by ending the Manufacturing and Agriculture Tax Credit. Rep. Quinn pointed to a report by UW-Madison researcher Noah Williams, a member of the Economics Department, that shows the positive impact this credit has had.
“I hear from farmers often in my office, and it is no secret how much they are struggling. The agricultural tax credit Governor Evers wants to end would hit rural Wisconsin especially hard ,” said Rep. Quinn. “Raising taxes on farmers couldn’t come at a worse time. Instead of pitting groups against one another, we can pay for this tax cut with our budget surplus, which we can continue to grow through wise fiscal policy and record unemployment across the state. We don’t grow the economy for everyone by punishing farmers and manufacturers.”
Assembly Republicans are working with the Senate to finalize the legislation, which could be introduced as early as next week. Once approved, the tax cut would take effect next year.