Higher earners will get the biggest break from the governor’s proposed tax cut.
Governor Scott Walker plans to use a surplus of $343 million in the current budget to give an income tax break over the next two years — an average of $83 for all taxpayers with a tax reduction in 2014.
The Legislative Fiscal Bureau issued a memo Monday showing the top 25 percent of Wisconsin households would get more than half of that.
Those earning $150,000 would get a 2 1/2 percent break, which comes to $237. Those making more than $300,000 would see the smallest reduction percentage-wise, at 0.57, which comes to $294. By comparison, folks making between $25,000 and $30,000 would get the highest percentage — 3.27 percent. That’s about 22 bucks.
Assembly Democratic Leader Peter Barca (D-Kenosha) said in a statement, “It is clear that Governor Walker’s tax cut is slanted toward higher-income families. Those who make more get far more of the pie. Those who are working for average wages get far less benefit.”
According to the LFB, the governor proposes to reduce the rates that apply to the three lowest tax brackets, beginning in tax year 2013. The respective rates would decrease from 4.60% to 4.50%, from 6.15% to 5.94%, and from 6.50% to 6.36%.