State Representative David Steffen (R – Howard) and Senator-elect Rachael Cabral-Guevara (R – Appleton) announced their goal to make retirement tax-free in Wisconsin.
The budget amendment, if taken up by the Joint Committee on Finance or the Governor, would exempt the first $100,000 of retirement income for each individual age 67 or older, and the first $200,000 for married-joint filers.
The Wisconsin Department of Revenue estimates that less than 2% of all tax paying retirees in Wisconsin would still have an individual income tax liability on retirement income under this proposal.
The proposal has been developed in coordination with Representative Macco (R – Ledgeview) who has played a leadership role in reviewing and vetting tax-related polices as chair of the Assembly Committee on Ways and Means.
“Thanks to prudent fiscal leadership by the Republican legislature the past ten years, Wisconsin finds itself in an enviable position. Exempting retirement income is the first piece of a comprehensive tax reform package that we will introduce this session. I look forward to delivering fair, low, and simple tax reform for all Wisconsinites,” said Rep. Macco (R-Ledgeview).