Wisconsin State Senator Devin Lemahieu
With nearly $6.6 billion in surplus revenue available, there’s optimism among Republicans that they can work with Democrats and Governor Evers to achieve major revisions in Wisconsin’s tax code.
The remarks were made by Wisconsin Senate Majority Leader Devin LeMahieu of Oostburg along with Assembly Speaker Robin Vos to a luncheon this past Tuesday in Madison, hosted by WisPolitics. The Republican leader said that the over $6-1/2 billion projected by the Legislative Fiscal Bureau to be available by the end of the current fiscal year should make meaningful compromise and trade-offs more likely than during the past four years. The first term for Democrat Governor Evers was often one of sharp disagreement with the Republican majority, which frequently gaveled in-and-out of special sessions called by the Governor to address issues over which the two parties are sharply divided. LeMahieu, along with Republican House Speaker Robin Vos, said that they would work with the Governor during the coming session to pass structural tax relief, expand school choice and advance other policy reforms that will benefit Wisconsinites.
LeMahieu said that top priority will be given to moving Wisconsin from a progressive, four-bracket personal income tax to a flat tax. He said that the goal would be to eliminate the personal property tax and to adjust the income tax brackets in a way that would give all taxpayers a tax cut. He added that “We definitely need to drive down our top rates. We’re sort of an island with our top rate here in Wisconsin. We need to drive that down and beat our neighbors.”
Wisconsin’s top marginal rate of 7.65% is among the highest in the country. Fourteen states already have or are in the process of moving toward a flat tax, including Illinois, Michigan, Indiana and Iowa. Twenty-five states have lower top marginal individual income tax rates now than they did in 2012, while nine states have no individual income tax at all. Speaker Vos said that it’s important that the two parties find ways to work together to fix a tax code that motivates people to leave Wisconsin because, he said: “We know that when somebody moves and leaves Wisconsin as a resident, rarely do they come back.
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