MADISON, Wisconsin – Governor Tony Evers made a decisive move on Friday by rejecting three key bills from a $2.1 billion tax package proposed by Republicans. In a strong statement, Evers expressed concerns that these bills would lead Wisconsin down a path towards financial insolvency if enacted. The rejected bills aimed to expand the state’s second-lowest tax bracket, provide exemptions for retirees’ income, and increase tax credits for married filers.
Although Evers has yet to take action on the fourth bill in the package, which pertains to tax credits for filers with children, his stance on the proposed measures is clear. The Governor emphasized the importance of delivering real relief to Wisconsin’s working families, ensuring that tax cuts are sustainable and do not jeopardize funding for essential public services like schools and public safety in the long run.
The proposals faced a divide along party lines, with no Democratic lawmakers supporting the bracket expansion or increased credit for married filers. While a few Democrats backed the retiree exemption and a significant number endorsed the child tax credit expansion, Republican authors justified the bills as measures designed to make Wisconsin an attractive place to reside for families, low- and middle-income earners, and retirees.
Critics argued that the tax package failed to prioritize the middle class and seniors adequately. Assembly Speaker Robin Vos criticized Governor Evers for disregarding the needs of Wisconsin’s seniors and accused him of prioritizing political posturing over practical solutions. The stakes were high as the measures could potentially drain the state’s rainy day fund and risk federal recoupment of funds distributed under the American Rescue Plan Act.
Despite signing a $2 billion tax cut in the state budget in 2021, Evers and Republican lawmakers have struggled to find common ground on income tax reduction strategies. The Governor’s previous veto of a GOP proposal aiming to cut income tax rates for wealthy earners underscored the ongoing tension surrounding tax policies in Wisconsin. As the debate over tax reform continues, the fate of Wisconsin’s fiscal future hangs in the balance.