With alternative minimum tax repeal, GOP lawmakers eye tax cut for wealthy

A key Republican lawmaker is renewing efforts to repeal Wisconsin’s alternative minimum tax, which mostly applies to the state’s high earners, and Senate Majority Leader Scott Fitzgerald has signaled broader support for the move among GOP lawmakers.

Rep. Dale Kooyenga, vice chairman of the budget-writing Joint Finance Committee, said Thursday that he’s proposing to repeal the tax through a broader tax package that would be revenue-neutral — meaning any tax cuts would be offset by corresponding revenue increases. The package also would reduce the so-called marriage penalty in the income tax code and overhaul the state sales tax on hotel rooms. The latter move would generate additional revenue, Kooyenga said.

Kooyenga, R-Brookfield, unsuccessfully pushed to repeal the alternative minimum tax two years ago. The tax is meant to ensure filers with large amounts of tax deductions or exclusions pay a minimum amount of income tax.

This time, Fitzgerald, R-Juneau, has indicated broader support for the move, telling the Milwaukee Journal Sentinel that Republican lawmakers are working to eliminate the tax.