Retroactive Tax Increases in Wisconsin

The new budget bill signed by Doyle before July 1st, adds some new taxes, retroactive to January 1, 2009.   

A whole new tax bracket at 7.75 %  was added for individuals with incomes over $200,000.

The tax on long term capital gains just doubled, from approximately 3% to 6% of the gain. 

The end result is calculated differently:  It used to be that only 40% of the capital gain was taxed at your individual Wisconsin tax rates.  Now 70% of the capital gain will be taxed.  Looked at another way, the previous exclusion from tax was on 60% of the gain.  Now only 30% of the gain is excluded from taxation.  Yes it is confusing, but essentially the tax on long term capital gains in Wisconsin just doubled.