A new report from Forward Analytics reveals that Wisconsin’s tax cuts under Republican leadership have overwhelmingly benefited low- and middle-income residents. The data contradicts Democratic claims that tax cuts primarily helped the wealthy. Instead, working-class Wisconsinites saw the largest percentage reductions in tax liability, while high-income earners received only minimal cuts.

Since 2012, Wisconsin has implemented four rounds of tax reductions, with the most significant cuts in the lowest brackets:

• Bottom tax bracket: Reduced from 4.6% to 3.5%
• Second-lowest bracket: Reduced from 6.15% to 4.4%
• Middle brackets: Merged and lowered to 5.3% (previously 6.5% and 6.75%)
• Top tax bracket: Minimal reductions, with rates largely unchanged (7.75 to 7.65)

The report’s analysis comparing 2023 tax rates to those from 2012 further highlights the impact:

• Single filers earning under $48,000: Tax cuts of 24%–26%
• Married filers earning under $68,000: Tax cuts of 24%–26%
• Single filers earning $400,000–$600,000: Tax cuts of 10%–15%
• Married filers earning up to $800,000: Tax cuts of 10%–15%
• Filers earning over $1 million: Tax cuts capped at 8% or less

These tax cuts not only provided direct savings but also improved Wisconsin’s national tax ranking. The state’s income tax burden, relative to personal income, dropped from 9th to 29th highest, and per capita rankings fell from 13th to 26th.

Legislative Republican-led reforms have consistently prioritized tax relief for working-class Wisconsinites, ensuring families keep more of their earnings. While critics claim tax cuts favored the wealthy, the data proves otherwise—Wisconsin’s tax policies have provided the greatest relief to those who need it most.

Currently, Republican lawmakers have repeatedly pushed for even more tax relief, arguing that the state is over-collecting from taxpayers and should return more money to families and businesses. In the previous budget, Republicans passed a $3 billion tax cut, which included reducing income tax rates across brackets, eliminating retiree taxes, and tax cuts for married households. However, Governor Tony Evers vetoed these tax cuts last session, blocking Republicans’ plan and arguing that the state must prioritize funding for schools, local governments, and childcare.

With the second half of FY 2025 now underway, the debate over the state’s tax collections and surplus is far from over. Republican legislators are expected to renew their push for returning more of the surplus to taxpayers, while Governor Evers and Democratic lawmakers will likely argue for maintaining the state’s financial cushion to fund public services and welfare expansion.

As the budget fight unfolds, Wisconsin taxpayers will be watching closely to see if they receive any relief—or if the state’s growing surplus remains in government hands.