With inflation running rampant and gas prices soaring, everything is costing a lot more. I'm happy to report that one thing that is going down is the state tax burden. But it almost wasn't like this.
The budget proposed by Governor Evers would have raised taxes by $1 billion during a pandemic. We rejected his plan and instead turned one of the largest tax hikes in state history into the largest tax cut in state history!
Even with the Governor's vetoes that hurt small businesses, our plan still reduces net taxes by more than $2 billion. Our plan was so good that Governor Evers is now trying to take credit for it.
The budget also reduced the third individual income tax bracket from 6.27% to 5.30%. That change will save Wisconsinites $2,013,500,00 in individual income taxes. We also created a nonrefundable individual income tax credit for household and dependent care expenses, which is expected to save working families $9,800,000. And to honor and help those that defend our freedoms, the budget exempts all federal income for active-duty military personnel. That will save our military families $40,400,000!
Our budget funds our shared priorities like health care, schools, and infrastructure. We restored 2/3rds funding for public education and invested in health care workers, nursing homes, and caregivers. The Legislature delivered a budget that is good for taxpayers, workers, and families.
Since 2011, Republicans have saved taxpayers $22 billion and it's paying off. Wisconsin’s tax burden dropped more than any other state over the last 20 years. Back in 1999, state and local taxes took up 12.2% of personal income. That was the fourth-highest in the nation. By 2019, the percentage dropped to 10.3%. Now, we are ranked 23rd in the country. I will continue to look for ways to lower your tax burden and make our state more competitive.
