MILWAUKEE — Arguably the most significant item in the Republican budget is $3.5 billion in state income tax cuts.
As someone who works in the food service industry, Liz Marquisette says she would love to pay less in taxes.
"Especially for lower-income people that are paycheck-to-paycheck like myself,” she said.
Republicans who control the state legislature have a plan to cut income taxes for everyone who works in the state.
"This is a significant tax cut,” said tax accountant Jim Brandenburg.
Brandenburg says the most significant change would be going from four tax brackets to three by morphing the two in the middle.
"There's a 4.65 bracket and a 5.3 percent bracket, those will be condensed into one 4.4 percent bracket,” he said.
The lowest income bracket would barely change. Single individuals’ income up to $13,810 currently comes with a 3.54 percent state tax. That would change to 3.5 percent under the Republican plan.
Brandenburg says the middle and top brackets would see a substantial difference in their tax return.
"A married couple with $100,000 of income would see over $600 tax reduction for the year, so that's a sizable amount,” he said.
If this budget item is approved, single people who make $30,000 a year would pay $61 less in income taxes. A person making $60,000 a year would save more than $300. The highest earners would benefit the most. Someone making a million dollars a year would save more than $10,000 in income taxes.
“Some people question if that’s equitable. What’s your opinion?” Jordan asked Brandenburg.
"Those at the lower end are paying less tax than those at the higher end, so it is proportional based on the amount of the income they have as well as their rate then,” he replied.
Liz doesn’t think the proposed formula is fair. She believes those who work full-time and still struggle to pay for groceries deserve the biggest tax cut.
"I'd love a tax cut but the fact that it's not really going to benefit me at all, I see no reason to implement it,” she said.
It’s a decision ultimately in the hands of Gov. Tony Evers, whose budget proposal targeted income tax cuts for individuals making less than $100,000 and married couples earning up to $150,000.
Republican lawmakers acknowledged Thursday the possibility of Gov. Evers vetoing their tax plan. GOP leaders said if that’s the case, they would have to find other ways to implement tax cuts.
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