Wages, Take-Home Pay, and Disposable Income
- CEA finds that passage of the full suite of policies in the current version of the OBBB will raise long-run wages in Wisconsin by an inflation-adjusted range of about $5,500 to $10,400 per worker.
- A typical family with two children in Wisconsin can expect to see higher take-home pay of about $7,200 and $12,100 in the long run if the OBBB is passed into law compared to if it is not.
- Around 6% of the labor force in Wisconsin is employed in occupations that will benefit from the “no taxes on tips” provision in the OBBB, or in the ballpark of 175 thousand workers.
- Around 1 million seniors in Wisconsin would benefit from the “no taxes on social security” provision of the OBBB.
- Around 27% of all employees in Wisconsin regularly work overtime and would benefit from the “no tax on overtime” provision of the OBBB. An even larger 65% of workers in Wisconsin are in occupations that are eligible for overtime and could also benefit.
Manufacturing, Timber, Business Provisions Jobs
- CEA finds that the OBBB will protect about 124 thousand full-time equivalent (FTE) jobs in Wisconsin over the next four years relative to if the TCJA is allowed to expire.
- The OBBB will extend the 199A passthrough deduction for small businesses. There are about 85 thousand small businesses in Wisconsin that are potentially eligible for the deduction, or about more than 40% of total the firms in the state.
- Provisions in the OBBB will also encourage increasing timber harvests where it is allowed on National Forest System lands by at least 25% compared to FY24, potentially generating millions in revenue for the federal government.
