Big Cuts in Income Taxes Proposed by Wisconsin Lawmaker

A major revision to the state's income tax code proposed by a state lawmaker would mean that taxpayers — over the next two years — would pay $750 million less in taxes, according to a story in the Wisconsin State Journal.

Rep. Dale Kooyenga, R-Brookfield, introduced a proposal Tuesday that calls for establishing lower tax rates, reducing the number of income tiers from five to three, and eliminating or reducing a number of tax credits used by individuals and businesses.

Kooyenga's proposal also goes much further than Gov. Scott Walker's proposal, which had already included $343 million in tax cuts, and would mean that a family of four with two people making $40,000 a year would save about $532, according to stories in the BizTimes and WisPolitics.com.

Kooyenga told the Wisconsin State Journal: “If the credits are being used by less than 1 percent of the population, then I think we should clear them out.”

But Rep. Corey Mason (D-Racine) told the Wisconsin State Journal that he didn't favor the proposal.

Mason said:

“When the middle class is trying to get back on its feet, I don’t know reducing taxes that by and large benefit those making well into six figures is what Wisconsin wants right now."

Kooyenga's proposal would also reduces the income tax form from four to two pages. A number of tax credits would also be eliminated, including those including those geared toward film and biodiesel fuel production, according to WisPolitics.com.

What do you think of Kooyenga's proposal?