May 20, 2013[Madison, Wisc…] Brett Healy and Nick Novak of the MacIver Institute joined their friends at Americans for Prosperity-Wisconsin to participate in Tax Townhalls all across Wisconsin last week.
The two traveled to Appleton, Green Bay, Green Lake, Oshkosh, and Wausau to speak with taxpayers about Wisconsin’s tax code, the state’s income tax, and Governor Scott Walker’s proposed budget that includes a $343 million income tax cut.
The chart above compares the Wisconsin income tax with its neighboring states and was passed out at each townhall.
Wisconsin currently has five tax brackets ranging from 4.60 percent to 7.75 percent, depending on taxable income. The per capita individual income tax collections in 2011 were $1,128 according to the Tax Foundation. This is higher than every neighboring state except for Minnesota.
Under the current tax code, an individual with taxable income of $11,000 in the State of Wisconsin would pay a higher state income tax rate than a millionaire in Illinois, Indiana, or Michigan.
Under Walker’s proposal, the bottom three tax brackets would see a rate reduction, resulting in overall taxpayer savings of $343 million.
The Joint Committee on Finance is currently debating Walker’s budget proposal and may propose changes to the Governor’s tax cut. Any major changes are expected to be introduced in late May or early June.