Tax relief: Gov. Evers, GOP leaders meet to discuss tax package

MADISON, Wis. (CBS 58) -- A plan to cut taxes is underway at the state Capitol after Gov. Tony Evers and GOP legislative leaders met privately last month, a rare meeting that signals both sides are willing to strike a deal.

Gov. Evers, Assembly Speaker Robin Vos and Devin LeMahieu met in March to try and hammer out details on a tax package.

On Tuesday, Evers and GOP leaders shared some details about their meeting and whether they'll be able to find a compromise.

"It was a good conversation," Evers told reporters. "I thought it was productive."

Vos said it was a "good discussion" and felt afterwards that "we're in an OK spot."

GOP leaders have said their preference is to send Evers a tax cut bill relatively soon, instead of crafting one in the state budget.

Doing so would reduce the chance of Evers taking credit again for signing a Republican-authored tax cut, just as he did with the 2021-2023 state budget.

However, when asked, Evers said he would not support a standalone tax bill.

"It has to be part of the state budget," said Evers. "We can't just do taxes, then do spending. We have to look at it together."

The discussion comes as lawmakers have a more than $4 billion state surplus to work with.

Earlier this year, Evers proposed $2 billion in tax cuts in his 2025-2027 biennium budget. That included a mixture of cutting income and sales taxes, while also lowering property taxes.

His budget would also increase taxes by more than $3 billion, a nonstarter for the GOP-controlled Legislature.

"I think the governor realizes we're not going to spend any more money unless we have the opportunity to reduce taxes and help folks deal with inflation," Vos said. "And I think we realize we are never going to get a tax cut if we don't talk to the governor and see where his priorities are as well."

It's unclear how much lawmakers want to spend on tax cuts and whether it will be targeted relief or across the board.

Evers prefers lowering taxes on middle-income earners and has proposed raising taxes on the rich by creating a new tax bracket for the wealthiest individuals.

However, GOP lawmakers have often rejected those plans.

Vos has said his priority is cutting retirement income.

Earlier this year, LeMahieu said he wanted to focus on reducing the state's second-highest tax bracket, 5.3% that covers families making between $38,190 and $420,000 for joint filers.

"Will continue to try and work with the governor and see if we can find consensus," LeMahieu told reporters.