Republicans want to cut taxes on retirement income next year

 

MADISON, Wis. (CBS 58) -- Thousands of retirees in Wisconsin could see a tax break heading into the new year.

Assembly Speaker Robin Vos (R-Rochester) said Republicans will propose legislation in January that would cut taxes on retirement income.

Vos said he hopes it will incentivize seniors to stay in Wisconsin.

“We know that retirement income is something that has driven an awful lot of people in our state and we want people to be able to stay in Wisconsin,” Vos said.

If approved by lawmakers, Wisconsin would join 13 other states that don’t tax retirement income. Republicans have introduced a similar measure before that would have removed up to $100,000 on retirement income in part of a much broader tax package.

Vos did not disclose many details of the proposal, but estimated two teachers or firefighters could see around $3,000 to 4,000 reduction in their taxes.

The announcement comes as lawmakers have been unable to reach a consensus on issuing tax relief for more than a year. Democrats have insisted on using a portion of the state’s $4 billion projected surplus on tax cuts, but prefer that relief be targeted towards the middle class.

“I would like us to think about a more comprehensive, fair way to get that money into the hands of people that it will most impact,” said Sen. Melissa Agard (D-Madison).

Assembly Minority Leader Greta Neubauer said she’s open to having conversations about the GOP plan.

“We of course know that retirees are struggling,” Naubauer said. “So, we are open to conversations about that, but we need to make sure we are providing for the long-term stability of our budgets here in the state of Wisconsin while also recognizing people are having a hard time making ends meet.”