Northwoods Reporter

The Wisconsin State Assembly has voted in favor of returning $2.1 billion of Wisconsin's budget surplus back to taxpayers. State Rep. Dave Armstrong (R-Rice Lake) supported each proposal in the four-bill package.

"Wisconsin enjoys a budget surplus thanks to responsible, conservative budgeting," Representative Armstrong stated. He further added, "If Governor Evers had had his way with the last two state budgets, there would be no surplus. In fact, taxes would have had to go up to fund his spending sprees. Republicans know that surpluses happen when governments tax you too much, while Democrats think it means governments aren't spending enough of your money."

The package consists of the following proposals:

Assembly Bill 1020 extends the second tax bracket (4.4%) to households earning up to $150,000, up from $38,190. AB 1020 returns $1.2 billion to Wisconsin families.

Assembly Bill 1021 raises the exemption for retirement income to $75,000 for single seniors and $150,000 for married couples. AB 1021 eliminates taxes on retirement income for 93% of Wisconsin's seniors and reduces taxes for the remaining 7%.

Assembly Bill 1022 increases the maximum credit for married persons from $480 to $870. This adjustment accounts for inflation since the credit was first established in 2001.

Assembly Bill 1023 enhances the state childcare tax credit to 100% of the federal childcare tax credit and raises the expenses used to calculate the state credit. The new figures are $10,000 for one child and $20,000 for two or more children. These updates align more accurately with the actual costs of childcare borne by Wisconsin families, resulting in an annual savings of approximately $73 million for taxpayers.

"Legislative Republicans have consistently supported tax relief for Wisconsin families," Representative Armstrong emphasized. He continued, "Governor Evers has just consistently rejected relief. With the legislative session almost over, I hope the Governor takes this opportunity to finally do the right thing for the people of this state."

In addition to the tax package, the Assembly also passed Assembly Bill 627, a proposal introduced by Representative Armstrong. This bill aims to modernize Wisconsin's Business Development Tax Credit by incentivizing job retention and capital investment, not just job creation. AB 627, along with the tax package, will now proceed to the Senate for further consideration.