spot_imgspot_img

Budget reformers pitch tax-free overtime in Wisconsin

(The Center Square) – The latest tax reform plan at the Wisconsin Capitol doesn’t include everyone, but budget reformers say it’s a start.

The Institute for Reforming Government on Wednesday introduced a plan that would make overtime essentially tax free.

IRG’s plan would eliminate income tax on overtime wages and bonuses up to $2,500.

“In practice, workers would not pay income taxes on wages earned for any work in excess of 40 hours during a work week. Families will have more money in their pockets to deal with the rising prices of necessities like gas, energy, and groceries. This will also provide an incentive for workers to help fill Wisconsin’s worker shortage,” the Institute said in a release.

IRG’s Alex Ignatowski told The Center Square the idea is not just to help working families but to restart the conversation about tax reform in Wisconsin.

“We need to continue the discussion on tax reform and concepts like this will help do that. The governor wants to see something that will help workers and there’s no way to argue that this bill does not do just that,” Ignatowski said.

Workers who earn overtime, obviously, will benefit the most from the plan. Ignatowski admits that means some workers in the state won’t see any tax breaks from the plan.

“It includes small bonuses, so some salaried employees would be included. But yes, it definitely leaves some people out. We’d like to fully eliminate income tax in Wisconsin, but given the current environment in Madison, we hope this is a compromise that can gather consensus. It could also be packaged with the retirement tax elimination bill,” he added.

Alabama has a similar piece of legislation that’ll take effect next year. But that plan will only last until mid-2025. North Carolina is currently considering similar legislation.

IRG has been pushing for sweeping tax reform in Wisconsin for a while, including a pitch earlier this year to move Wisconsin to a flat tax.

Wisconsin Republican lawmakers have approved two income tax cuts for the state, but Gov. Tony Evers vetoed the first and is promising to veto the next as well.

DON’T MISS OUT

Be the first to know about the latest news, giveaways, events, and updates from The Black Chronicle!

We don’t spam! Read our privacy policy for more info.

spot_imgspot_img
spot_img

Hot this week

African and Caribbean Nations Call for Reparations for Slave Trade, Propose Global Fund

Nations across Africa and the Caribbean, deeply impacted by...

Health care company agrees to pay $22.5 million to settle claims of over billing

A health care company agreed to pay nearly $22.5...

Sports betting expert offers advice on paying taxes for gambling winnings

(The Center Square) – Tax season is underway, and...

Entertainment district benefits don’t outweigh the cost, economists say

(The Center Square) — Weeks later, after more details...

Business association ‘disappointed’ by WA L&I’s proposed workers comp rate hike

(The Center Square) – The Association of Washington Business...

Survey: Small business owners optimistic heading into holiday shopping season

(The Center Square) – Although a new survey reveals...

Delaware-based group spends thousands on candidates across Illinois

(The Center Square) – Several Illinois races are being...

Voters have high number of transit measures in 2024

Voters will decide on $59.2 billion in dedicated, multi-year...

Former Seattle Police Chief Adrian Diaz placed on administrative leave

(The Center Square) – Former Seattle Police Chief Adrian...

California goods inflation down, wages up, fueling possible housing bubble

(The Center Square) - According to new reports from...

Census: Arizona remains a top destination for moving Americans

(The Center Square)— New estimates from the U.S. Census...

Ohio school district adopts controversial ‘Grading for Equity’ policies

A school district outside Cleveland, Ohio, will have staff...

More like this
Related

Survey: Small business owners optimistic heading into holiday shopping season

(The Center Square) – Although a new survey reveals...

Delaware-based group spends thousands on candidates across Illinois

(The Center Square) – Several Illinois races are being...

Voters have high number of transit measures in 2024

Voters will decide on $59.2 billion in dedicated, multi-year...

Former Seattle Police Chief Adrian Diaz placed on administrative leave

(The Center Square) – Former Seattle Police Chief Adrian...