Wisconsin tax revenues outpaced projections by $4.4 billion in the last quarter of 2021. This unprecedented good news helped to frame the state budget when the Joint Committee on Finance approved the two year spending proposal with a $3.4 billion tax cut.
Under the proposal, income taxes would be cut by $2.75 billion, property taxes would be decreased by about $650 million, and businesses would save $200 million on personal property taxes over the next two years.
The income tax cut would apply to individuals who earn between $23,930 and $263,480 per year and married couples who file taxes jointly and earn between $31,910 and $351,310 per year. It would lower taxes for those brackets from 6.27 percent to 5.3 percent.
According to the Legislature’s nonpartisan budget office, that change is expected to cost the state about $2.4 billion over two years. An individual or family that earns between $50,000 and $60,000 per year would save $172 on income taxes annually, the budget office said.