Democrat Gov. Tony Evers proposed a middle-class income tax last February that left Republicans divided.
Gov. Tony Evers (Photo: Wisconsin Public Radio)
Democrat Gov. Tony Evers’ Proposal For A Tax Cut
Last February, Democrat Gov. Tony Evers proposed a middle-class income tax that would have cost the federal government $839 million by 2025. Months later, Republicans reworked the budget and gave Evers a $3.5 billion income tax cut. According to the LFB (Legislative Fiscal Bureau), high-earning taxpayers that would earn more than $250,000 would get a tax cut of 48% using the Republican budget Evers was given.
In comparison with the governor’s proposal, couples earning under $70,000 would get a tax cut of $100; couples earning under $140,000 would get a tax cut of $320; and couples earning under $170,000 would get a tax cut of $64. According to the LFB, for couples to get their tax cut, their income would have to be taxable.
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Behind $3.5 Billion Tax Cut Budget By Republicans
In his proposal, Evers wanted to use higher taxes that are paid by businesses and investors which would pay for a $190 million tax credit for families and others. In this tax credit, parents who are struggling to provide child-care essentials and basic needs are included.
Republicans who essentially control the Assembly hesitated to approve a flat income tax cut. They opted to add a $3.5 billion tax cut budget instead. With that, Evers must soon this budget for it to be taken into effect or he would veto it. Evers also has the option to rewrite his proposal with vetoes included. According to Republicans, an average taxpayer would have a tax saving of 15% under this tax cut budget, should Evers sign it.
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