Wisconsin Republicans Try Again with Tax-Free Retirement

The latest push to lower taxes in Wisconsin, once again, focuses on the state’s older folks.

A handful of Republican lawmakers on Wednesday reintroduced their plan to make retirement tax-free.

“We can’t do much about the weather, but we can lower the tax burden on seniors. Two of our neighboring states, Illinois and Iowa, already have a form of tax-free retirement,” Rep. Joel Kitchens, R-Sturgeon Bay, said.

The plan from Kitchens and others would exempt the first $75,000 in retirement income for single filers and exempt the first $125,000 for retired couples.

“We can’t afford to keep losing seniors to other states. When they leave, we don’t just lose revenue. Families miss out on sharing important life events. Wisconsin is sitting on a $3 billion surplus, we can afford this tax cut more than we can afford not doing it,” Kitchens added.

Republicans actually passed a similar plan, on a largely party-line vote, back in February. But Gov. Evers vetoed it.

At the time, Evers said cutting taxes for retirees and others could leave Wisconsin short.

“When we deliver tax relief for the people of Wisconsin–just as we have–it should be real relief aimed at helping Wisconsin's working families afford rising costs, and it should be responsible and sustainable, ensuring we can keep taxes low now and into the future without causing devastating cuts to priorities like public schools and public safety down the road,” the governor wrote in his veto message.

Sen. Rachael Cabral-Guevara, R-Fox Crossing, said that is a disservice to Wisconsin’s older folks.

“Our retired parents and grandparents deserve to keep the money they’ve put away throughout their career,” Cabral-Guevara said. “Punishing them for staying near their family in Wisconsin once they retire isn’t the way to treat our seniors.”

The state estimated that the last tax-free retirement plan would save seniors in Wisconsin more than $650 million in its first year.

There’s no word what the revamped plan would save seniors.

“Tax-Free Retirement is something that Wisconsinites across the state want, which is why I am proud to be re-introducing this proposal. Historic inflation has been particularly hard on our fixed-income retirees and we should be focused on finding ways to make Wisconsin an affordable place to retire,” Rep. David Steffen, R-Howard, added.

Lawmakers will have to wait until after a new legislature is elected in November, and then sworn-in in January to officially reintroduce the proposal.

Gov. Evers’ office has not said if they are any more inclined to sign a tax-free retirement law this time around.