Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB1022

Introduced
1/29/24  
Refer
1/29/24  
Report Pass
2/8/24  
Refer
2/8/24  
Engrossed
2/13/24  
Refer
2/19/24  
Enrolled
2/21/24  
Vetoed
3/1/24  
Refer
3/13/24  

Caption

The married persons credit. (FE)

Impact

The implementation of AB1022 would impact state law by modifying sections related to tax credits for married individuals, effectively providing greater tax relief to families where one spouse earns significantly less. This change could result in increased disposable income for these households, thus influencing their economic capacity and spending behaviors. Additionally, it aims to address financial disparities within married couples by ensuring that those with lower earnings receive equitable consideration during tax deductions.

Summary

Assembly Bill 1022 seeks to amend the existing married persons credit provisions in the Wisconsin tax code. The bill proposes an increase in the tax credit provided to married couples with earned income. For taxable years beginning after December 31, 2023, couples can claim a credit of up to 3 percent of the lower-earning spouse's income, with a maximum limit of $870, an increase from the previous maximum of $480. This adjustment reflects an intention to alleviate financial burdens on lower-income families and promote tax equity among married partners.

Sentiment

The sentiment surrounding AB1022 seems largely positive among proponents, who view it as a much-needed update to a tax structure that hasn't adequately reflected the financial realities faced by married couples. Supporters argue that increasing the married persons credit will help bolster family finances and promote fairness in the tax system. However, some critiques may arise regarding the adequacy of the proposed increase in the credit to effectively meet the needs of low-income families, suggesting that the changes may require further adjustments in the future.

Contention

While the bill is generally supported, some contention may arise regarding its long-term fiscal implications on the state's budget. Opponents may express concern over whether increasing tax credits for married couples could lead to reduced revenue, impacting state funding for other essential services. There may also be discussions about the criteria used to determine eligibility for the credit and whether these adjustments genuinely align with the financial challenges faced by lower-income families across Wisconsin.

Companion Bills

No companion bills found.

Previously Filed As

WI SB979

The married persons credit. (FE)

WI AB248

Allowing certain married persons to claim the earned income tax credit when filing a separate return. (FE)

WI SB243

Allowing certain married persons to claim the earned income tax credit when filing a separate return. (FE)

WI AB20

Allowing certain married persons to claim the earned income tax credit when filing a separate return. (FE)

WI SB20

Allowing certain married persons to claim the earned income tax credit when filing a separate return. (FE)

WI AB2

Eliminating the personal property tax. (FE)

WI SB2

Eliminating the personal property tax. (FE)

WI AB793

Modifying the tax treatment of college savings accounts and the employee college savings account contribution credit. (FE)

WI AB742

Eliminating obsolete statutory references regarding property, sales, and income taxes; the uniform unclaimed property act; and lottery games. (FE)

WI AB627

Various changes to the business development tax credit. (FE)

Similar Bills

No similar bills found.