Democrat and Republican plans for a middle class tax cut clash
MADISON, Wis. (CBS 58) -- Both Democrats and Republicans want to move forward with a tax break for Wisconsin's middle-class, but each side is offering two very different plans to achieve that goal.
Republicans and Democrats can agree that they want a tax cut for the middle class, but they cannot agree on how to accomplish that. The GOP tax plan uses the budget surplus to pay for the $340 million it would cost for the tax relief.
That proposal got its first public hearing on Tuesday where Assembly Speaker Vos testified, but Governor Evers does not support that plan.
"I don't think I could sign a tax cut of that type where the money going forward is not there," says Gov. Tony Evers (D) Wisconsin.
Instead, he's offering his own plan.
"The plan that we will be proposing in the budget is a far superior one," Gov. Evers said.
Evers' plan, which will be included in the budget, would cut taxes by about $415 million but to pay for it, he wants to cap tax credits for manufacturers as well as shift other funds in the budget.
Both Evers and state Democrats believe the GOP is not sustainable in the long term. Democrats today introduced a substitute amendment for the GOP tax bill.
"The Republicans are not funding their plan. They are spending money without funding it. And they're taking this obligation into the future," says Rep. Chris Taylor (D) Madison.
While Assembly Speaker Robin Vos agrees a tax break is needed, he doesn't think that Governor Evers and the Democrats are going about it the right way.
"I am glad that Governor Evers is trying to find ways to cut taxes. I think he has one flawed belief, is that he thinks that the only way to reduce taxes on some is to reduce taxes on others. That is something we are never going to accept," says Assembly Speaker Robin Vos (R) - Rochester.
The Assembly Ways and Means Committee will vote on the GOP tax plan on Wednesday, likely without any of the changes proposed by the Democrats. If it is approved, it could head to the Assembly floor next week for a vote.