Republican suggests income tax cut could offset gas tax hike

MADISON, Wis. (AP) -- The Republican co-chair of the Legislature's budget committee says a $340 million income tax cut could be used to offset an increase in gas taxes or other transportation-related fees to help pay for roads.

Transportation funding is expected to be one of the flashpoints in the two-year state budget that Democratic Gov. Tony Evers introduces in late February. That fight in recent years has hinged on whether lawmakers would support gas or fee increases to pay for roads.

Budget committee co-chair Rep. John Nygren said Tuesday that Republicans might be willing to raise gas taxes if the amount of the increase corresponds with the income tax cut.

Evers wants to pay for the income tax cut by capping a manufacturing and agriculture tax credit program. Republicans oppose doing that. Instead, they want to pay for the tax cut by tapping state reserves.

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