Assembly Approves GOP-Backed Income Tax Cut Proposal

The state Assembly voted Tuesday to advance a Republican-backed income tax cut, despite doubt over whether Democratic Gov. Tony Evers will sign it.

The Republican bill would use money set to roll over from the current budget to fund a middle-class tax cut that would save the average taxpayer $170 a year, according to the Legislature’s nonpartisan budget office. It would be effective January 2020.

Evers and Democratic lawmakers have pushed for a similar tax cut, also aimed at middle-income earners. The primary difference between the plans is how they are funded. Rather than using existing state funds, the Democrat-backed plan would be paid for in part by rolling back a tax credit for manufacturers.

That rollback would only pay for about 60 percent of the Democrats’ tax cut. The remaining funding is expected to be unveiled as part of the governor’s budget proposal later this month.

Evers has said he is unlikely to sign the Republican bill, but stopped short Tuesday morning of saying he would veto the measure. Instead, he said he was hopeful there would be room for compromise between the GOP and Democrat-backed plans.