Sales Tax Surge in Wisconsin Triggers Income Tax Cuts

Income tax rates will drop roughly one half of a percentage point for many Wisconsin taxpayers thanks to a tax trade enabled by a surge in sales tax collections from e-commerce transactions.

The Department of Revenue certified new tax rates for the two lowest individual income tax brackets to offset a surprising $257 million bump in sales tax collections attributable to state laws imposing tax collection duties on out-of-state retailers and marketplace providers such as Amazon, Etsy, and eBay.

The department Tuesday certified a reduction in the 4% statutory rate for joint filers earning less than $15,680 to 3.54%, and ...