MADISON, Wis. (AP) — The $650 million state income tax cut signed into law last month won't automatically result in higher pay checks for Wisconsin taxpayers. That's because the state is not changing paycheck withholding tables to reflect the new lower rates. Unless taxpayers fill out the necessary paperwork for employers to withhold less, they won't see the benefit of the tax cut until they file taxes in 2014. Todd Berry, president of the nonpartisan Wisconsin Taxpayers Alliance, says the state has historically not adjusted withholding tables so it can collect more in taxes to pay its bills during the year.
Berry says the average taxpayer has between 15 percent and 25 percent more withheld by the state for income taxes than is necessary.