Taxpayers will see an average reduction of $177 in their income tax bill for 2020 due to increased tax revenue from online sales, according to a report from Wispolitics.com. Under new legislation designed to reduce income taxes in the two lowest income tax brackets, additional tax collected from online sales involving out-of-state retailers should reduce income taxes by an equal amount.
The Legislative Financial Bureau projects nearly 2.3 million tax filers, or 71.6%, will see a decrease in their income tax under the arrangement. Taxpayers with adjusted gross incomes below $100,000 are expected to see an average cut of $158. Those earning more than $100,000 are expected to see an average decrease of $251.
