Republicans on the Joint Finance Committee (JFC) voted to cut taxes by more than $530 million Thursday, finishing their work on the 2019-21 budget and passing the document out of committee. The vote follows more than a month of JFC meetings on Gov. Tony Evers’ budget proposal.
Under the Republican package, the average tax filer will see more than $200 in tax relief in the next two years, with the bulk of the tax relief coming through income tax rate reductions. The second income tax bracket, currently at 5.84 percent, will fall to 4.93 percent in 2020. The bottom-most bracket will fall from 4.0 percent to 3.76 percent in 2020.
Immediately after the budget vote, JFC passed a separate bill authored by Sen. Dale Kooyenga (R-Brookfield) and Rep. Jessie Rodriguez (R-Oak Creek). Assembly Bill 251 (AB 251) sends new revenue from remote sales tax collections (out-of-state online sales) into income tax reductions for the bottom-most rate. The budget motion and AB 251 together bring tax relief over the biennium to more than $530 million.
The Assembly and the Senate are expected to take up the budget in its entirety during the last week in June.