January 14, 2013

Wisconsin Budget Project: Taxation of Capital Gains Income

ITEP Work in Action

Wisconsin is one of nine states that provide a broad tax break for capital gains. That tax exclusion has become a key budget issue after the state Senate voted on June 17 to eliminate the tax break for such income, in lieu of creating a new oil company tax. The Governor and Assembly recommended smaller changes than the Senate relating to capital gains taxation, and the issue will have to be resolved in upcoming budget negotiations.

The following issue brief provides some basic information relevant to the debate about taxing capital gains.