Current:Home > Contact-usWisconsin Republicans revive income tax cut after Evers vetoed similar plan-InfoLens
Wisconsin Republicans revive income tax cut after Evers vetoed similar plan
View Date:2024-12-23 10:31:48
MADISON, Wis. (AP) — Wisconsin Assembly Republicans on Tuesday proposed a nearly $3 billion tax cut targeting the middle class, but it’s unclear whether Democratic Gov. Tony Evers is on board after he vetoed a similar tax cut just last month.
“We’re giving the governor a second chance to do the right thing,” Rep. Mark Born, co-chair of the Legislature’s budget-writing committee, said at a news conference announcing the plan.
Republicans called for tapping the state’s projected $4 billion budget surplus to pay for the tax cut, which would lower the state’s third income tax bracket from 5.3% to 4.4% and exclude the first $150,000 of a couple’s retirement income from taxes. That would apply to people over age 67.
The income tax cut would mean that taxes for income between $27,630 and $304,170 for individuals, and between $36,840 and $405,550 for married couples, would drop from 5.3% to 4.4%. Every joint filer earning between $18,420 and $405,550 would be taxed at the same 4.4% rate.
Evers vetoed that same income tax cut in the state budget. He had no immediate comment on the new Republican proposal, but his spokesperson Britt Cudaback posted reminders on social media that Republicans had rejected a 10% middle class income tax cut the governor previously proposed.
The retirement tax cut is a new proposal. It would exempt the first $100,000 from an individual’s retirement income from taxes and the first $150,000 from a couple’s income. Under current law, money withdrawn from an individual retirement account, 401(k) plan or other retirement savings accounts are subject to Wisconsin income tax.
Evers has said he was open to reconsidering cutting taxes if Republicans would look at funding some of his priorities. Evers called a special session for the Legislature to spend more than $1 billion for child care, the University of Wisconsin System, worker shortage programs and other areas.
But Republicans have said they aren’t going to do that, a point Born repeated Tuesday.
“The Legislature is not interested in spending more money,” he said.
But Republicans are trying to work with Evers as evidenced by them not reviving the income tax cut for the highest bracket, which Evers also vetoed in July.
“We’re not trying to do the same thing,” Born said. “We’re trying to find a way to return this money to taxpayers.”
It was unclear whether Republicans in the Senate, which must also sign off on any tax cut, agree to the plan. Republican Senate Majority Leader Devin LeMahieu did not immediately return a message seeking comment.
Sen. Rachael Cabral-Guevara is co-sponsoring the tax cut bill and attended the news conference. She said Republican senators want to cut taxes and they will discuss the proposal.
The Assembly was moving ahead quickly with the plan, scheduling a public hearing for Wednesday. The full Assembly could vote on passing it as soon as mid-September.
Republicans also introduced a proposed constitutional amendment that would require a two-thirds vote to approve any tax increase. That measure would have to pass two consecutive legislative sessions and be approved by a vote of the people before taking effect.
The Assembly GOP tax cut plan comes after Evers vetoed a $3.5 billion income tax cut to just $175 million, which left the average taxpayer with a $3 monthly reduction in taxes. Evers argued then that he was vetoing the tax cut to make money available for other priorities.
Evers’ budget director issued a memo on Monday warning that cutting taxes more than $432 million over the next two years could jeopardize about $2.5 billion in federal pandemic relief money the state has received. But Born dismissed that concern, calling it a threat from the Evers administration that won’t happen.
veryGood! (89)
Related
- Chipotle unveils cilantro-scented soap, 'water' cup candles in humorous holiday gift line
- Why do Super Bowl tickets cost so much? Inside the world of NFL pricing, luxury packages, and ticket brokers with bags of cash
- Chinese authorities cancel Argentina friendlies amid Messi backlash
- Travis Kelce Has Heated Moment with Coach Andy Reid on Field at Super Bowl 2024
- Full House Star Dave Coulier Shares Stage 3 Non-Hodgkin's Lymphoma Diagnosis
- $50K award offered for information about deaths of 3 endangered gray wolves in Oregon
- Beyoncé releases two new songs during the Super Bowl, teasing more to come
- Super Bowl squares: Rules, how to play and what numbers are the best − and worst − to get
- Manhattan rooftop fire sends plumes of dark smoke into skyline
- 2 dead after plane crashes onto highway near Naples, Florida, and bursts into flames
Ranking
- Olympic Skier Lindsey Vonn Coming Out of Retirement at 40
- Wu-Tang Clan opens Las Vegas residency with vigor to spread 'hip-hop culture worldwide'
- Taylor Swift planning to watch Travis Kelce and the Chiefs play 49ers in the Super Bowl
- See Patrick Mahomes and Wife Brittany's Adorable Family Moments On and Off the Field
- Taylor Swift touches down in Kansas City as Chiefs take on Denver Broncos
- Chiefs kicker Harrison Butker steals Super Bowl record away from 49ers kicker Jake Moody
- Meet Speckles, one of the world's only known dolphins with extremely rare skin patches
- Beyoncé releases two new songs during the Super Bowl, teasing more to come
Recommendation
-
FSU football fires offensive, defensive coordinators, wide receivers coach
-
How many Super Bowls have the 49ers won? All of San Francisco's past victories and appearances
-
A tiny robot on the space station will simulate remote-controlled surgery up there
-
Kim Kardashian and Odell Beckham Jr. Spotted Together in Las Vegas Before Super Bowl
-
Satellite images and documents indicate China working on nuclear propulsion for new aircraft carrier
-
Who sang the national anthem at the 2024 Super Bowl? All about Reba McEntire
-
'Grey's Anatomy' star Jessica Capshaw returns to ABC series as Dr. Arizona Robbins
-
Vinícius leads Madrid’s 4-0 rout of Girona in statement win. Bellingham nets 2 before hurting ankle