Tony Evers and Devin LeMahieu.
Gov. Evers, left, has not yet said whether he will sign or veto the $2.2 billion tax plan Senate Majority Leader Devin LeMahieu, right, says will 'put more money into family budgets and strengthen Wisconsin’s economy.'
In his sixth State of the State speech, Democratic Gov. Tony Evers promised to veto three specific changes Republicans are pushing:
The Legislature’s new attempt to draw new Assembly and Senate district lines. A 14-week limit on the right of pregnant women to have an abortion. And, “any effort by politicians to abuse the power to interfere with an election.”
But Evers was surprisingly silent on the Republicans’ latest $2.2-billion effort to cut taxes. The closest he came was a general warning that “giving more big breaks to millionaires and billionaires isn’t a workforce plan.”
Why was the governor’s silence last week on a tax cut so surprising, since the nonpartisan Legislative Fiscal Bureau (LFB) projected a $3.5 billion general-fund surplus, and a $1.8-billion “rainy day” fund balance, by mid-2035?
Evers, after all, said this in the same speech in 2023: “Cutting taxes is part of our agenda,” although we must also “bolster the middle class.”
Also consider what Evers said in his first State of the State address, in January 2019: “The first thing I’m going to do is deliver on my promise to expand the child and dependent care credit.” Then, Evers estimated that the specific changes he wanted would cost $30 million and help 100,000 taxpayers.
Was the governor silent on a tax cut because one change the Republicans would make is exactly what Evers championed in 2019?
According to LFB’s analysis of the Republicans’ tax cut, it would expand the child and dependent care credit by $72.93 million — more than twice the benefit Evers wanted in 2019 — and help 111,170 taxpayers when they file their 2024 taxes. These changes alone would save an average taxpayer $656, LFB reported.
Evers vetoed the last two Republican tax cuts after insisting they favored the wealthy. But, in an election year, he may be considering signing this one because of three other changes it makes.
It would raise the income threshold for the second income tax bracket (4.4%) from $38,190 to $150,000 for married couples, which Republicans insist is a “middle class” tax break. The average tax cut would be $454.
It would allow single taxpayers over 65 to exempt $75,000, and couples over 65 to exempt $150,000, in “retirement income” from state income taxes. LFB estimated the average tax break for older taxpayers would be $1,582.
It would increase the maximum credit for married couples from $480 to $870, which Republicans say would “put more money in young families' pockets.” LFB scored that average tax cut at $338 per taxpayer.
“Cutting taxes will put more money into family budgets and strengthen Wisconsin’s economy,” said Senate Majority Leader Devin LeMahieu.
“The governor has told us that $150,000 per year is middle class,” added Sen. Howard Marklein, co-chair of Joint Finance Committee. “Our middle-class tax cut answers the governor’s call. We are cutting taxes for everyone.”
“Everyone in our state needs tax relief, and this package of bills targets each of life’s milestones,” said Assembly Speaker Robin Vos.
Britt Cudabeck, the governor’s communications director, said Evers “has signed multiple income tax cuts targeted to the middle-class” and Republicans announced their plan only hours before he gave his State of the State speech.
“Gov. Evers’ enacted income tax relief now totals $1.5 billion annually,” Cudabeck said.
In his 2023-25 budget, Evers proposed $1.2 billion in tax relief, “including specific and targeted relief to students, veterans, and parents, among others, which GOP legislators rejected,” Cudabeck added.
Although Evers was silent on the GOP tax cut, he used a new, harsher tone last week. He publicly shamed “Republicans” 10 times for their actions and inactions.
Specifically, Evers three times blamed Republicans for not approving how to spend $125 million set aside to fight cancer-causing PFAs in public and private water supplies.
Contrast that with the general appeal he made to fight PFAs last year. “I implore you, again, to join me in this fight.”
Three other times, Evers blamed Republicans for trying to limit a woman’s choice to have an abortion to 14 weeks of pregnancy, instead of the current 20 weeks, if voters statewide agreed and passed a statewide referendum.
Twice, Evers blamed Republicans for refusing to address what he predicts will be a child-care disaster when federal funds subsidizing that industry run out. At risk are 2,110 programs that care for 87,000 children, Evers warned.
Evers twice more targeted “Republicans” for failing to act on the workforce shortage and his request for 12 weeks of paid family leave for workers, which could cost $240 million.
Republicans again dismissed the paid leave request.
“More government bureaucrats and higher spending will not help our state move forward,” said Assembly Majority Leader Tyler August.
Steven Walters started covering the Capitol in 1988. Contact him at stevenscotwalters@gmail.com.
