New Year Brings Many State Tax Cuts in Wisconsin
Among the state policy changes taking effect as the new year begins are a number of phased-in tax cuts passed in earlier budgets. A new report by the Wisconsin Budget Project–a research group the studies the impact of state and federal tax and spending policies–identifies nine new or expanded tax deductions and credits that affect Wisconsin taxpayers in 2013. Those changes will reduce tax revenue by an additional $262 million in the 2013-15 biennial budget.
One example is a new income tax cut for businesses based on income derived from manufacturing or agricultural property. That cut is phased in over four years, starting in 2013. When the credit is fully phased in, businesses will pay an estimated $129 million less in income tax each year, and it will almost completely exempt many manufacturers from Wisconsin income tax. The cumulative ten-year cost of the credit is about $874 million.