Gov. Evers anticipates vetoing GOP flat tax proposal after meeting with Senate leader
MADISON, Wis. (CBS 58) -- Can Republican leaders and Democratic Governor Tony Evers reach a deal on tax relief? It's the $6.6 billion question. That's how much cash Wisconsin is projected to have sitting in the state surplus next year.
There's consensus between top Republicans and Evers to lower taxes for Wisconsinites next year but agreeing on how much tax relief and who will benefit is still up for debate.
Evers said he recently met with Senate Majority Leader Devin LeMahieu (R-Oostburg) and discussed legislative priorities, including tax relief.
“We brought up taxes,” Evers said. “I don't think we came to a conclusion, but we talked about the issues facing Wisconsin.”
The meeting comes after LeMahieu said he’s working with Senate Republicans on a phased-in flat tax proposal. LeMahieu suggested moving the state's income tax rate down to 3.54%, currently the lowest rate, over the next two to four years.
"I think a good starting point would be the lowest tax bracket, which is 3.54%, then bringing the other three brackets down to there," LeMahieu said. "We could do something with deductions to make sure everyone gets tax relief."
Evers said it's "very likely" he would veto a flat tax proposal if it reached his desk because he argues such a plan would primarily benefit the wealthiest earners, instead of low to middle class households.
Even before he was elected to office, Evers campaigned for cutting income taxes by 10% for middle income individuals and families. In August, he announced plans to use the state surplus to provide more than $600 million in tax relief including a 10% tax cut for individuals earning less than $100,000 and families less than $150,000.
Republican lawmakers rejected Evers' proposal, calling it a gimmick during an election year.
Evers is likely to introduce a similar tax cut plan in his 2023-2025 state budget proposal, but it could face hurdles with the Republican-controlled Legislature.
"They [Republicans] agreed to a middle tax cut the last two times and I anticipate they will again," Evers said, referencing the two state budgets he signed, which included GOP-authored tax cuts. "I can't imagine not doing that again."
Last year, Evers signed the 2021-2023 state budget that included a $2 billion tax cut backed by Republicans. He opted against vetoing the entire budget because he said it would have compromised billions in federal Covid-19 aid to the state.
The debate over tax relief comes as Evers will introduce his proposed state budget in February. Republican lawmakers will then get their chance over the next several months to make revisions before sending it back to Evers sometime in June, before the July 1 deadline.
Earlier this month, Assembly Speaker Robin Vos (R-Rochester) said he wants to lower taxes "significantly" more than the last state budget that cut taxes by $3.4 billion. He did not further elaborate on his plans.
Evers said he has a meeting scheduled with Vos later this week. It comes as GOP leaders and Evers' relationship has essentially been non-existent for years.
Staff for each office has said they have been in contact to discuss issues, such as the 2021 Covid-19 relief bill, but it has been a while since GOP leaders and the governor met in person.