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Governor Evers Proposes Middle Class Income Tax Cut in First Budget

Friday, March 1st, 2019 -- 10:57 AM

(AP) -Income taxes for the middle class would be cut 10 percent under Democratic Gov. Tony Evers’ first budget.

He would also limit a 30 percent capital gains exclusion to single people earning less than $100,000 and couples earning less than $150,000. Overall, taxes would increase about $550 million over the next two years. The state has a $616 million budget surplus now, but under Evers’ budget released Thursday it would end with just $20 million. Evers is also calling for a new child care tax credit equal to 50 percent of the same federal credit.

And first-time homebuyers could subtract up to $5,000 a year, $10,000 for married couples, in accounts to pay for home purchases that would grow tax-free. Property taxes on the median-valued home would increase $50 in each of the next two years.

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