AB 969

This bill makes changes to the individual income tax rates and brackets. Under

current law, there are four income tax brackets for single individuals, certain

fiduciaries, heads of households, and married persons. The brackets are indexed for

inflation. The rate of taxation under current law for the four brackets, before

indexing for inflation, is as follows:

1. For taxable income not exceeding $7,500, 4.0 percent.

2. For taxable income exceeding $7,500, but not $15,000, 5.21 percent.

3. For taxable income exceeding $15,000, but not $225,000, 6.27 percent.

4. For taxable income exceeding $225,000, 7.65 percent.

Under this bill, which first applies to taxable year 2020, there are five income

tax brackets for single individuals, certain fiduciaries, heads of households, and

married persons. The brackets are indexed for inflation. The rate of taxation under

the bill for the five brackets for single individuals, certain fiduciaries, and heads of

households is as follows:

1. For taxable income not exceeding $7,500, 4.0 percent.

2. For taxable income exceeding $7,500, but not $15,000, 5.21 percent.

3. For taxable income exceeding $15,000, but not $225,000, 6.27 percent.

4. For taxable income exceeding $225,000, but not $500,000, 7.65 percent.

5. For taxable income exceeding $500,000, 8.25 percent.

The rates that apply to married joint filers under the bill are the same as the

rates that apply to single individuals, fiduciaries, and heads of households, but the

income limitations are higher. The lowest bracket applies to taxable income not

exceeding $10,000; the second bracket applies to taxable income exceeding $10,000,

but not $20,000; the third bracket applies to taxable income exceeding $20,000, but

not $300,000; the fourth bracket applies to taxable income exceeding $300,000, but

not $1,000,000; and the fifth bracket applies to taxable income exceeding $1,000,000.

Finally, the bill requires the Department of Revenue to estimate the increase

in revenue in 2021 that results from the changes made in this bill and provides for

the general program operations appropriation for the University of Wisconsin

System to be increased by that amount for the fiscal year beginning on July 1, 2021.