State Assembly Passes Income Tax Cut Proposal

Thursday, September 14th, 2023 -- 12:00 PM

(AP) The Republican-controlled Wisconsin Assembly passed a nearly $3 billion income tax cut proposal Tuesday, despite promises from Democratic Gov. Tony Evers to veto it.

The Assembly passed it 64-35 with all Republicans in support and Democrats against. Republicans said the measure was designed to combat inflation and make more Wisconsin retirees stay in the state. Rep. David Steffen, the Republican author of the bill, said it would provide swift and broad tax relief.

Taxes would drop from 5.3% to 4.4% for individual income between $27,630 and $304,170 and married couples between $18,420 and $405,550. The bill would also exclude the first $150,000 of a couple’s retirement income from taxes, which would apply to people over 67.

The measure would utilize the state’s projected $4 billion budget surplus to pay for it. Democrats echoed Evers in saying they didn’t think the tax cut was sustainable and efforts should instead focus in other areas, like making child care more affordable and tax cuts more targeted to the middle class. 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 next week to spend more than $1 billion for child care, the University of Wisconsin System, worker shortage programs and other areas. The bill now goes to the Senate.

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