Senate sends $2.1 billion in tax cuts aimed at low and middle earners to Gov. Tony Evers

MADISON – A $2.1 billion plan from Republican lawmakers to lower taxes heads to Democratic Gov. Tony Evers after the state Senate passed the package Tuesday.

The four bills if signed into law would significantly expand the state's second-lowest tax bracket to include more than 1 million Wisconsin residents earning between $19,000 and $150,000 per year, exempt up to $75,000 of retirees' income, and expand tax credits for married filers and filers with children.

All Democratic members of the state Senate voted against the tax bracket adjustment and the credit expansion for married filers. One Democrat joined Republicans in passing the retirement income exemption. The credit expansion for filers with children passed with seven Democrats joining Republicans to pass it.

It's unclear whether Evers will sign the bills into law.

In a recent appearance on WISN-TV's "Upfront," Evers indicated he might be willing to sign some of the bills into law but has not answered whether he supports specific proposals within the package.

"I've been through all of them. I'm going to go through them again. I'm sure there's some we'd agree on," Evers said.

The proposals' Republican authors have said the bills are designed to make Wisconsin a more attractive place to live for families, low- and middle-income earners and retirees. Democratic lawmakers have questioned whether the bills are the best way to accomplish those goals.

Altogether, the measures would cost $2.1 billion in the 2024-25 fiscal year and $1.4 billion every year afterward, according to a nonpartisan analysis from the Legislative Fiscal Bureau. The measures would reduce the state's total income tax revenue by $2 billion per year in fiscal 2024-25 and $1.4 billion per year after that, according to the Legislative Fiscal Bureau.

Wisconsin is projected to end the 2023-25 budget with a $4 billion surplus and $2 billion in its rainy day fund.

Evers in 2021 signed a $2 billion tax cut in the state budget, but he and Republican lawmakers have largely failed to find consensus on how to cut income taxes in the state since.

Twice last year, Evers vetoed a GOP proposal to cut the income tax rate for the state's third tax bracket, which applies to joint filers earning up to $405,000 per year. Evers said at the time he would not sign into law a tax cut for wealthy earners. Republicans have said the new proposals were crafted with Evers' previous veto messages in consideration.

Molly Beck can be reached at molly.beck@jrn.com.