Bill would make overtime, limited bonus wages exempt from income tax

 

MILWAUKEE (CBS 58) -- The money workers make on overtime hours and on bonuses they receive would no longer be taxed by the state under a bill a group of Republican lawmakers are circulating at the state Capitol.

Senators Julian Bradley (R-Franklin) and Patrick Testin (R-Stevens Point) and State Representatives Chanz Green (R-Grand View) and Nate Gustafson (R-Neenah) introduced the proposal Wednesday.

The bill would make wages on hourly earnings beyond 40 hours in a week and employer bonuses up to $2,500 per year exempt from the state income tax.

The co-authors wrote in a memo to other lawmakers they believed the idea would help workers deal with inflation raising the cost of goods, and it could also spur people to pick up extra hours at their jobs if that workplace is shorthanded.

"With so many Wisconsin companies having vacant positions due to a labor shortage, the overtime hours are usually plentiful and sorely needed," the lawmakers wrote.

The lawmakers wrote their offices used Bureau of Labor Statistics data to estimate the average Wisconsin workers would save about $320 per year if such wages were no longer subject to state income taxes.

The next step would be the bill being placed in a committee and given a public hearing. The Legislature will reconvene next month.