Gov. Tony Evers renewed his call to provide a 10% individual income tax reduction beginning in fiscal 2022
According to a recent report from the Legislative Fiscal Bureau, “revenue collections were significantly higher than previously estimated” for both the individual income tax and the corporate/franchise tax for the 2021-22 period.
The Department of Revenue says General Purpose Revenue collections for fiscal 2022 exceeded estimates by $1.6 billion, a 50% increase over projections, and 8.6% more than estimates by the Legislative Fiscal Bureau.
This means the state treasury will end the fiscal year with a $3.8 billion surplus, and nearly $2.9 billion more than the 2021 projected balance.
As a result of new revenue projections, Gov. Tony Evers renewed his call to provide a 10% individual income tax reduction beginning in fiscal 2022. The governor also called for reducing taxes on low-income seniors on fixed incomes by increasing the income limit for the Homestead Credit, expanding eligibility for the Veterans and Surviving Spouses Property Tax Credit, creating a caregiver tax credit, and expanding the newly created child and dependent credit from 50 percent of the federal credit to 100%.
In addition, the governor proposes eliminating the Unfair Sales Act for motor fuel, a controversial move he claims would reduce the cost of gas at the pump. The Unfair Sales Act, strongly supported by NFIB, helps promote a more competitive marketplace which actually helps keep gas prices in Wisconsin below the national average.
A joint statement by Assembly Speaker Robin Vos and Senate Majority Leader Devin LeMahieu criticized the governor’s proposal as an election-year tax gimmick: “He wanted to raise taxes by $1 billion in his budget. Now he wants to cut taxes as the political winds change. We are not going to jeopardize future budgets in the midst of a recession to fund a tax gimmick. If the projected surplus materializes, we will cut taxes for everyone.”