LRB-0912/1
MES:cmh:pg
2005 - 2006 LEGISLATURE
January 20, 2005 - Introduced by Representatives Loeffelholz, Suder, Hahn,
Albers, Hines, Nass, Wieckert, Krawczyk, Musser, Stone, Bies, Gundrum,
Hundertmark, Wood, Jeskewitz, J. Fitzgerald, Rhoades, Van Roy, Lothian,
Freese, Towns, Vos, Townsend, Honadel, Kestell, LeMahieu, Vrakas,
Owens, Pettis, Nelson and Vruwink, cosponsored by Senators Leibham,
Kanavas, Wirch, Roessler, Lazich, Lassa, Kapanke and Darling. Referred to
Committee on Ways and Means. Referred to Joint Survey Committee on Tax
Exemptions.
AB17,1,3
1An Act to amend 71.05 (6) (b) 21. of the statutes;
relating to: increasing the
2amount of the individual income tax subtract modification for social security
3benefits.
Analysis by the Legislative Reference Bureau
In general, under current law, 50 percent of certain social security benefits is
taxed by this state once the recipient's income reaches $34,000 for a single individual
or $44,000 for a married couple filing jointly, while the federal government taxes 85
percent of these same benefits. This bill exempts from taxation completely the social
security benefits which are included in the calculation of a taxpayer's federal
adjusted gross income.
This bill will be referred to the Joint Survey Committee on Tax Exemptions for
a detailed analysis, which will be printed as an appendix to this bill.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB17, s. 1
4Section
1. 71.05 (6) (b) 21. of the statutes is amended to read:
AB17,2,25
71.05
(6) (b) 21. The
difference between the amount of social security benefits
6included in federal adjusted gross income for the current year
and the amount as
1calculated under section
86 of the
internal revenue code as that section existed on
2December 31, 1992 Internal Revenue Code.
AB17,2,74
(1) This act first applies to taxable years beginning on January 1 of the year
5in which this subsection takes effect, except that if this subsection takes effect after
6July 31 this act first applies to taxable years beginning on January 1 of the year
7following the year in which this subsection takes effect.
