Governor Evers Opposed to Flat Income Tax Cut Plan

Thursday, December 22nd, 2022 -- 12:00 PM

(AP) Wisconsin Gov. Tony Evers is promising to veto any flat income tax cut plan passed by the Republican-controlled Legislature, favoring instead his proposal to reduce taxes for the middle class by 10%.

Evers, in an interview with The Associated Press on Tuesday, came out against an idea being floated by Republican Senate Majority Leader Devin LeMahieu that would tap part of the state's projected $6.6 billion budget surplus to move toward a flat income tax rate.

“I don’t see that as something that I could support,” Evers told AP. “I believe that targeting the middle class is where we should be. We should continue to have a progressive tax system.”

LeMahieu and Republican supporters have defended the flat tax idea, saying that taxes would be lowered for all income levels, not just the highest earners. Doing that would eliminate the state's highest tax bracket of 7.65% paid by individuals earning more than $280,950 a year and married joint filers earning more than $374,600. The lowest current income tax rate is 3.54%.

Evers said the tax cut plan he released in August as he was running for reelection is what he will include in the two-year state budget he delivers to the Legislature on Feb. 15. Under that plan, taxes would be cut $600 million a year, including by 10% for individuals earning less than $100,000 and families earning less than $150,000.

Evers’ proposal would also cap copays for insulin at $35, repeal the state’s minimum markup law in an attempt to lower gas prices, cut taxes for seniors on fixed incomes, expand property tax relief for veterans with disabilities and attempt to lower the cost of caregiving and child care.

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