Governor Evers Announces Details of $1.2 Billion Tax Cut Proposal

Governor Tony Evers announced new details of his proposal to cut taxes by more than $1.2 billion in the next two-year state budget on Sunday as Wisconsin’s budget surplus has topped $7 billion.

Governor Evers first proposed the tax cut last August that includes a 10 percent state income tax cut for the middle class. Individuals making less than $100,000 and married couples or joint-filers making at or below $150,000 would benefit from the proposal. Evers said the proposal would provide $839.6 million over the budget for low- and middle-income residents with an average cut of more than $200 annually for 1.9 million filers.

Wisconsin’s Democratic governor and GOP leaders have frequently been at odds over fiscal policy. Their differing views on tax breaks for residents is just one of many disputes over how to spend the state’s record budget surplus, which is on top of an additional $1.7 billion set aside for Wisconsin’s rainy day fund.

In his budget, Evers is also proposing to:

  • Increase the federal Earned Income Tax Credit to more than $300 annually on average for 200,000 families
  • Enhance the Homestead Tax Credit to help seniors and increase eligible household income to $35,000
  • Expand property tax relief for veterans with disabilities by providing $53.5 million over 2 years
  • Create a caregiver tax credit to help with caregiving costs limited to $500 in a tax year, providing $195 million in tax relief over 2 years to around 240,000 taxpayers
  • Expand the Child and Dependent Care Tax Credit from 50 to 100 percent of the federal credit in 2023
  • Adopt federal tax changes to protect student loan borrowers and adopt remaining provisions of the Tax Cuts and Jobs Act of 2017, which would raise $388.2 million over 2 years
  • Repeal the personal property tax, providing more than $200 million to businesses
  • Increase a research credit for businesses from 15 to 15 percent in 2024
  • Limit the 30 percent long-term capital gains exclusion to individuals making less than $400,000, raising $339.4 million over 2 years
  • Limit the manufacturing tax credit to the first $300,000 in qualified production income, raising $655.1 million over 2 years to offset tax breaks for the middle class and businesses