Wisconsin taxpayers will see a tax increase of, on average, $2,229 per filer if the federal Tax Cuts and Jobs Act expires Jan. 1, according to a new report from the National Taxpayers Union.
If the bill expires, it would increase taxes for 80% of Americans, the report says.
The largest tax increases would hit people in Massachusetts ($4,848 annual tax increase), Washington ($4,567) and California ($3,768).
If the cuts are extended, it is projected to cost the federal government about $4 trillion in revenue.
If the legislation expires, it will cut in half the federal standard deduction, reduce child tax credits, reintroduce higher federal tax brackets and lower the threshold for federal estate taxes while cutting several business tax benefits.
“Wisconsin does not adopt full expensing business investments,” the report says. “State policymakers could adopt 100% full expensing regardless of whether federal full expensing is renewed.”
If the cuts expire, individual and business taxes would go up $500 billion each year while reducing the federal gross domestic product 1.1% and wages by 0.5%, the report says.
