Madison, WI – Today, State Representative David Steffen (R-Howard) introduced legislation that would deliver major tax relief for Wisconsin’s middle-class earners and retirees. The package is estimated to cut the state’s tax burden by over $2.9 billion. The average filer will see a savings of $772, which represents about a 16% decrease in their tax burden.
The proposal builds upon the Tax-Free Retirement legislation that Rep. Steffen introduced earlier this session, by incorporating a middle-class tax cut to provide widespread relief to working Wisconsinites. In addition to exempting up to $150,000 in retirement account income for joint filers, this legislation would reduce the middle-income tax rate from 5.3% to 4.4%.
“Wisconsinites are among the most highly taxed earners across the country. This burden, coupled with crushing inflationary pressures has made affording everyday life a financial struggle. The good news is, our state’s unprecedented budget surplus has placed us in a position to deliver real, meaningful relief to our hardworking middle-class and our fixed-income retirees,” said Rep. Steffen.
Rep. Steffen’s Tax-Free Retirement proposal has been met with a positive, bipartisan response and would provide Wisconsin retirees with the financial freedom to retire in-state. Currently, two of Wisconsin’s neighbors, Illinois and Iowa, boast a tax-free retirement. Adopting a similar environment in Wisconsin would help the state retain its retirees.
In addition to Tax-Free Retirement, the legislation introduced today would provide relief for middle income Wisconsinites. Filers within this bracket would be taxed at a rate of 4.4%.
“The average Wisconsin household makes about $67,000 per year. A truly meaningful, middle-class cut should certainly include the average household in our state. Our hardworking residents are up against higher costs everywhere they turn. This bill will ensure they keep more of their hard earned paycheck,” said Rep. Steffen.
The bill will next receive a public hearing before being available for consideration by the full Assembly. For more information please contact the office of Representative Steffen at (608)237-9104 or by email at Rep.Steffen@legis.wisconsin.gov.