Republicans approve $2.1B tax package, unclear whether Gov. Evers supports
MADISON, Wis. (CBS 58) -- Lawmakers approved a $2.1 billion tax package that includes expanding the second income tax bracket to include more middle-income earners while also increasing tax credits to newly married couples and parents.
Republicans in the Assembly passed the measures even though it's unclear whether Gov. Tony Evers would sign them. Last week, the Democratic governor was noncommittal about the package.
One bill would significantly reduce the second lowest tax bracket rate from 5.3% to 4.4%, which would add more than 1 million taxpayers earning between $19,000 and $150,000 per year.
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.
Tax credits for married couples would also increase from $480 to $870 under another bill. The child and dependent expense credit would be targeted in another measure by expanding it to $10,000 for one child and $20,000 for two or more kids.
Another bill would exempt up to $75,000 retirement income for single filers and $150,000 for joint filers.
GOP lawmakers say they carefully crafted the bills with hopes of gaining Evers' support as both sides have been unable to reach an agreement on how to issue tax relief to Wisconsinites for over two years.
In 2021, Evers signed a $2 billion tax cut in the state budget, but since then he's rejected a series of tax proposals authored by Republicans because he argued they primarily benefited the wealthiest residents.
Lawmakers have a projected $3.25 billion state surplus to work with, which is $800 million less than estimates six months ago, according to an analysis by the nonpartisan Legislative Fiscal Bureau.
During debate on the bills, Democrats maintained the proposals could be risky given the state's financial situation.
Republicans countered that argument by saying the proposals could help keep retirees in the state and overall make Wisconsin a more attractive place to live by reducing the tax burden.
