Evers open to signing some GOP tax cut bills, but not all

 

MADISON, Wis. (CBS 58) -- Gov. Tony Evers has indicated he supports some bills included in a $2.1 billion tax package Republicans passed this month.

The proposals include adding more than one million taxpayers to the state's second income bracket to lower taxes on those earning between $19,000 and $150,000 per year, cutting retirement income, and expanding tax credits for newly married couples and parents.

"I'm sure we’ll be [signing] some, but not all," Evers told reporters in Kenosha when asked if he'd sign any of the four bills Republicans sent him earlier this week.

A bill that would expand a child care tax credit is the most likely to be signed by Evers because it received bipartisan support in the Legislature. The child and dependent expense credit would increase to $10,000 for one child and $20,000 for two or more kids, under the proposal.

Meanwhile, Evers may veto a key component of the tax package that would significantly reduce the second lowest tax bracket rate from 5.3% to 4.4%. Last year, Evers rejected similar GOP tax proposals that included giving tax breaks to the top earners in the state.

During debate on the bill, Republicans said they crafted them with Evers' previous concerns in mind.

Under the proposal, the bracket would be expanded to include single earners making up to $112,500 and joint earners making up to $150,000.

That means individuals earning between $50,000 and $60,000 per year would save on average $145. Meanwhile, taxpayers who make between $100,000 and $150,000 would see about $600 in tax savings.

Another measure Evers is weighing would exempt up to $75,000 in retirement income for single filers and $150,000 for joint filers. If signed into law, Wisconsin would join 13 other states that don’t tax retirement income.

Republicans hope the bill would help attract and retain retirees in the state.

The remaining proposal in the tax package would increase tax credits from $480 to $870 for newly married couples. All Democrats in the state Senate voted against this bill along with the proposal that would expand the second income tax bracket.

In total, the bills would reduce the state's income tax revenue by $2 billion per year in fiscal 2024-25 and $1.4 billion per year after that, according to the Legislative Fiscal Bureau.