Reducing Taxes and Regulations
The Assembly passed legislation this week to cut red tape and put more money in people’s pockets. AB 38 creates an income tax exemption on earnings from tips. Under the proposal, workers in qualifying tipped occupations can deduct up to $25,000 in tips from taxable income each year. The deduction phases out for high earners and self-employed individuals are limited to their net business income.
AB 461 creates an income tax exemption on overtime wages. This subtraction applies to documented overtime pay shown on a worker’s standard wage statement. Single filers will be able to subtract up to $12,500 of overtime earnings each year from their state taxable income. Married couples filing jointly can subtract $25,000 under the bill. The credit phases out as income increases. Whether it’s workers in the popular Wisconsin industries of hospitality and tourism, or workers covering shifts above and beyond standard hours, these alignments with the federal tax code facilitate easier filing and provide direct and tangible tax relief.
Lastly, AB 212 permits and establishes a framework for out of state telehealth services. Providers under this proposal must hold an active, unencumbered license in another state and meet stringent criteria in Wisconsin to practice virtually. This method is especially relevant for mental health services, for which the need in our state remains unmet. The modernization of our healthcare regulations will protect patients while expanding consumer choice and access to critical services in otherwise underserved regions.
Defining and Criminalizing Grooming
The Assembly also passed AB 677 this week, creating a targeted and necessary definition of grooming as a crime. The legislation came after testimony before the Assembly Committee on Government Oversight, Accountability, and Transparency regarding a recent investigation of more than 200 cases of school officials accused of sexual misconduct or grooming behaviors toward students. It was exposed at this hearing that no state statute defined or identified grooming.
AB 677 was then drafted in consultation with prosecutors to create a deliberate and proper definition of grooming as a distinct and punishable offense, including one that can take place outside of the classroom. The bill recognizes this serious predatory behavior and authorizes early intervention for law enforcement and prosecutors, prioritizing prevention and accountability. I look forward to its progression in the legislature.
Free Fishing Weekend
This weekend, January 17-18, the Wisconsin Department of Natural Resources is sponsoring its biannual Free Fishing Weekend! I encourage everyone who enjoys fishing to take this opportunity to bring family and friends to participate in this great Wisconsin pastime, without needing a fishing license, trout stamp, or salmon stamp.
For those who are less experienced, this is a fantastic chance to learn a new skill while enjoying Wisconsin’s natural beauty and rich traditions before committing to an annual license. Check local listings to ensure the ice is safe, and best of luck!
Follow Along on Facebook
Want to hear more about what’s going on in Madison and the district? Follow my Facebook page for weekly updates and to learn more about bills, events, and efforts I’m involved in. Find my Facebook page here: facebook.com/RepSteffen/.
Contact Me
My office is always available to help with any state-related questions or concerns you may have. You can reach my office at (608) 237-9104, or email me at Rep.Steffen@legis.wisconsin.
