Tax Cuts Not Seen in Wisconsin Until Next Year
By Patrick Lynn
The multi-million dollar tax cut signed into law in June won’t automatically result in higher pay checks for Wisconsin taxpayers.
The Badger State will not be changing withholding tables that tell employers how much in taxes to hold back. That piece of the law was initially included in the new tax break legislation when introduced by Rep. Dale Koovenga, a Republican from Brookfield, but was removed as it worked its way into the 2013-15 budget.
For taxpayers to have the withholding amount changed, they need to fill out new paperwork for a lesser amount to be withheld. Otherwise they won’t benefit until they file taxes in 2014.
An automatic adjustment of this nature isn’t typical in Wisconsin, said Todd Berry, president of the nonpartisan Wisconsin Taxpayers Alliance.
Berry said the average taxpayer has 15- 25 percent more withheld by the state for income taxes than is necessary.
“It’s been going on for well over a decade and this really was the golden opportunity to change it,” Berry said. “The only reason I can come up with for the fact that they didn’t is they want the income tax refund to be bigger next April.”
A representative from the governor’s office said Scott Walker has pushed for an income tax cut.
“Regardless of whether or not the withholding tables are changed, all income taxpayers will receive an income tax cut and will be able to keep more of their hard-earned money,” Walker spokeswoman Jocelyn Webster said in a statement released Thursday.
But not adjusting withholding will result in a more noticeable tax cut during an election year. The average filer will get $158 more refunded back in 2014 as opposed to getting $13 less taken out in taxes each month this year.