The fine print shows a more complicated story. According to the LFB, just under 74% of the income tax reduction will go to people with adjusted gross income of $ 100,000 or more.
The budget signed Thursday will lower the income tax rate from 6.27% to 5.3% for income between approximately $ 24,000 and $ 263,000 per year, or between $ 32,000 and $ 351,000 for married filers.
Taxpayers who earn more than that would still benefit from the lower tax bracket. Thus, a person earning $ 500,000 would see a lower tax rate on their income between $ 24,000 and $ 263,000, with all income above being taxed at the next bracket rate of 7.65%.
In total, officials say the plan would save taxpayers $ 2.7 billion over two years, of which $ 2 billion would be in direct tax cuts. Evers vetoed changes to the state’s income tax withholding tables, so taxpayers would see the remaining $ 700 million in savings through refunds when they file their taxes.
Many Republicans have already accused Evers of taking credit for a major tax cut they designed, potentially creating a new line of criticism that Evers, who has built his career on his bland flavor of politics , is dishonest.
“He was not being honest with Wisconsinians,” said Andrew Hitt, chairman of the Wisconsin Republican Party. “He proposed more than a billion dollars in tax increases in his budget. Less than six months later, he signed this budget which reduced taxes by two billion and took the credit for it.