Begin to phase out state tax on retirement income
Will "work to begin phasing out the state tax on retirement income to help keep investment capital in Wisconsin instead of watching it go to states like Florida and Arizona."
Sources:
Subjects: Economy, Retirement
Wasn't in first budget -- or now the second
Updated: Thursday, April 4th, 2013 | By Dave Umhoefer
As part of a multi-pronged tax reduction strategy outlined in the 2010 race, Scott Walker called for Wisconsin to head down the road of eliminating its state tax on retirement income.
"I will work to begin phasing out the state tax on retirement income to help keep investment capital in Wisconsin instead of watching it go to states like Florida and Arizona,” then-candidate Walker promised.
We located no evidence that as governor, Walker included such a tax cut in his first two budgets, which cover 2011-"15.
Some states give various breaks on pension income. Wisconsin generally does not. Wisconsin, however, does not tax social security benefits. That started in 2008.
Jocelyn Webster, Walker's communications director, pointed us to a line in Walker's 2013-'15 budget that continues a reduction in state tax that began in 2009 when Wisconsin adopted federal limits on taxes that apply on pension and IRA contributions.
But that dates to an action by former Gov. Jim Doyle, not Walker, and does not move the state toward eliminating the state tax on retirement income.
We rate this promised Stalled.
Sources:
Department of Revenue, "Federal Roth IRA conversion law adopted for Wisconsin,” March 16, 2010
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