Wisconsin’s Revenue Secretary Rick Chandler told lawmakers yesterday that Governor Scott Walker’s tax cut would focus on the middle class, even though about half of it would go to people who earn at least six figures.
Walker’s tax cut would reduce Wisconsin’s three lowest tax rates. The way the tax code works that means wealthier residents would still get a tax cut on all the income they earn in those lower brackets.
In dollar terms, the nonpartisan Legislative Fiscal Bureau (LFB) says that means roughly half of the annual tax cut would go toward people who make $100,000 or more. Racine Democrat Cory Mason says those are not the middle-class people he sees in his district: “When we’re thinking about who the working-class, middle-class folks are who are going to need it – where I come from, it’s not folks making six figures.”
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But Chandler says the tax cut will mostly benefit people who earn $35,000-100,000. And if others who earn more benefit, Chandler said that is OK.
“The middle class is getting a greater proportionate share of the cuts than others. But we did want to have a broad-based package. And we are very comfortable with providing relief all across the income spectrum.”
The LFB said someone making $300,000 a year would get an annual tax cut of $294 under the Governor’s budget. Someone making $30,000-40,000 would get an annual tax cut of about $35.
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