The Republican leader of the Wisconsin Senate recently proposed a flat tax that would reap annual savings for millionaires in excess of $100,000.
The proposal would gradually reduce income tax rates until 2026, when a single rate of 3.25% would apply. Wisconsin currently has four brackets: 3.54%, 4.65%, 5.3% and 7.65%.
The Legislative Fiscal Bureau said those making $1 million or more would save an average of $112,167 in 2026. The median tax filer making between $60,000 and $70,000 would get an average tax decrease of $690.
Under the plan, Wisconsin’s income tax revenue would drop by $2 billion in the 2023-24 tax year and $5 billion annually by 2026-27, the LFB said.
Gov. Tony Evers, who supports a progressive tax system, has vowed to veto the proposal.
Fourteen states have or are implementing a flat tax, the Tax Foundation reported in November.
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