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Republican State Representative David Steffen announces proposal for retirement tax breaks

Posted at 6:58 PM, Jan 02, 2023
and last updated 2023-01-02 19:58:40-05

GREEN BAY (NBC 26) — State Representative David Steffen (R – Howard) and Senator-elect Rachael Cabral-Guevara (R – Appleton) announced today their goal to make retirement tax-free in Wisconsin.

Wisconsin Department of Health Services predicts that by 2025 there will be over 6.2 million residents over the retirement age and maintaining those residents is crucial according to Representative Steffen.

“We are competing with various different states to keep our senior population,” said Steffan. “A lot of people aren't aware of the impact that seniors have on our communities and our economies, they are the largest contributor to charities and to our churches, and they are the largest group when it comes to volunteering, and they are light on local government.”

The budget amendment, if taken up by the Joint Committee of Finance or the Governor, would exempt the first $100,000 of retirement income for each individual age 67 or older, and the first $200,000 for married-joint filers.

“I think that whether you are republican or democrat we can all agree that seniors have been hit the hardest with these most recent price spikes,” said Steffen.

This proposal will take 6% of the overall structural budget and will assist an estimated 98% of retirees.

“I am hopeful that this is something we can all get behind, again, it is a small percentage of the overall structural budget surplus, so I’m expecting broad bipartisan support.”

The proposal has been presented to the governor as of Jan 1, 2023, and steps to move it forward or deny it will be presented next week.