Dec. 15, 2022
With the state anticipating a $6.5 billion budget surplus, lawmakers have plans for a major overhaul of Wisconsin’s income tax structure. Senate Majority Leader Devin LeMahieu says the senate is currently working on plans for a phased-in 3.5% flat tax.
Although championed by conservatives, the flat tax is not party specific. Wisconsin’s democrat stronghold neighbors, Illinois and Michigan, both have a flat tax. Reliably Republican Indiana also has a flat tax, and Iowa is currently phasing one in.
Grover Norquist told the MacIver Institute early this week that voters of all stripes strongly support flat taxes. In 2020, Illinois voters overwhelmingly cast ballots for Joe Biden and to keep their flat tax in place.
The MacIver Institute has promoted a “Glide Path to a 3% Flat Income Tax” for over five years.
LeMahieu says he believes the Assembly is also working on a flat tax plan, but doesn’t know any details yet. With the state collecting $6.5 billion more from taxpayers than it needs, the legislature certainly has plenty of options on how to finally make this important policy a reality in Wisconsin.