Evers, Vos both want larger tax cuts but remain divided on the issue
MADISON, Wis. (CBS 58) -- Tax cuts could be back on the negotiation table in Madison, but as to whether Governor Tony Evers and top Republicans could strike a deal remains up in the air.
Gov. Evers says he's willing to negotiate a new tax cut bill after giving conflicting answers on the issue, but Assembly Speaker Robin Vos (R-Rochester) remains committed to the plan the governor already vetoed.
On Monday, Evers said he'd welcome a separate bill to issue additional tax relief to the middle class after vetoing Republicans' $3.5 billion income tax cut proposal in the state budget, which would have issued tax relief to all income brackets while also largely benefiting the wealthiest Wisconsinites.
"If [Republicans] are willing to come back…if there's some way to make sure the middle class gets a large tax cut, bring it on. But if it's going to be about the 11 wealthiest people in the state receiving an average $1.8 million less in taxation, that's not going to make it," Evers told reporters while visiting a child care center in Montello.
At a stop in Montello, @GovEvers clarifies his stance on additional tax cuts if Republicans sent him a new plan.
— Emilee Fannon (@Emilee_Fannon) July 17, 2023
“If they are willing to come back…if there’s some way to make sure middle class gets a large tax cut - bring it on.” pic.twitter.com/VfV1scQqu5
Assembly Speaker Robin Vos (R-Rochester) responded to Evers by challenging him to reconsider Republicans' income tax plan that would have provided a larger cut for the middle class.
"If Governor Evers is admitting he made a mistake in vetoing the large middle class tax cut Republicans just sent him, then we are happy to work with him to pass it again," Vos said in a statement to CBS 58.
Under the GOP proposal, households earning between $60,000 to $70,000 a year would have seen a $249 tax cut, according to an analysis by the nonpartisan Legislative Fiscal Bureau.
Meanwhile, under the state budget Evers signed into law, those earning the same amount would on average pay $44 less in taxes.
Evers used his veto pen to scale back Republicans' $3.5 billion tax cut to $175 million by maintaining the state's four brackets and cutting the top two income brackets.
He kept in place reductions for the third-highest tax rate, which applies to households that earn $36,840 or less. The rate they are taxed at would change from 4.65% to 4.4%, while the bottom rate would reduce from 3.54% to 3.5%.
Earlier this month, Vos said he wanted to override Evers' veto -- a task that would be difficult since the Assembly would need Democratic votes to be successful. Vos also added he may introduce another tax cut plan this fall when lawmakers could return to address the issue.
When asked about Vos' plans then, Evers told the Milwaukee Journal Sentinel he would not sign a bill that has the same reductions in place or one that just focuses on the second-highest tax rate, which represents middle class earners.
"No," Evers said on July 6. "(If) their concern now is that there isn't a big enough tax cut for the middle class, all they had to do was adopt mine to begin with."
Days later, Evers told WISC-TV he'd be open to negotiating with Republicans on cutting taxes for the middle class rather than a proposal that benefits the wealthy.
Even before Republicans began crafting the budget, Evers said he wouldn't sign a tax cut plan that benefits the wealthiest earners. He instead proposed a 10% income tax for the middle class, which Republicans rejected.
A spokesman for Senate Majority Leader Devin LeMahieu (R-Oostburg) did not respond to request for comment on negotiating a new tax cut proposal.
Tax Rebates
Evers dismissed the idea of issuing a one-time tax rebate for every Wisconsin resident as another option to return a portion of the state's projected surplus to taxpayers after proposing one last year.
This budget cycle, lawmakers had a projected $7 billion surplus to work with. Now, after Evers' budget vetoes, the current surplus for the next budget will be about $4 billion, according to new figures released by the Legislative Fiscal Bureau.
"Tax rebates come and go," Evers said when asked if he supports a tax rebate as an alternative to additional tax cuts. "People don't recognize rebates that well. You have to apply for it on your tax form and you never see the money, frankly. I would prefer giving a tax cut."
Last year, Evers called for using a portion of the surplus to provide a $150 per person tax rebate for every Wisconsin resident. That plan was swiftly rejected by Republican lawmakers who called it an election year "gimmick," since it was proposed in the midst of Evers' reelection bid.
Former Republican Gov. Scott Walker enacted a similar plan during an election year by providing a child tax credit and a one-time sales tax holiday before losing to Evers by fewer than 30,000 votes in 2018.