Wisconsin Republicans' tax relief plan targets middle class

Republicans announce WI tax relief plan

Republican Assembly Speaker Robin Vos and members of the Assembly Republican caucus proposed a nearly $3 billion tax relief plan targeting the middle class in Wisconsin.

OAK CREEK, Wis. - An estimated $4 billion Wisconsin budget surplus has sparked dueling visions for what to do with the taxpayer money.

Assembly Republicans on Aug. 29 laid out their latest plan for tax cuts, this time totaling $2.9 billion.

"To return a significant chunk of the surplus that now sits in Madison back to the taxpayers of Wisconsin," said Assembly Speaker Robin Vos (R-Rochester).

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"Right now, the way the policies are set up, government is effectively driving people to other states, and we need to make sure Wisconsin is a great place to live, to raise a family, and continue to build multiple generations of families," said State Rep. Nik Rettinger (R-Mukwonago).

Republicans would exempt retirement income from taxes – up to $100,000 for single fillers and $150,000 thousand for married couples.

Wisconsin Republicans' tax relief plan released

Republican Assembly Speaker Robin Vos and members of the Assembly Republican caucus released on Tuesday, Aug. 29 a tax relief plan for Wisconsin.

The Assembly GOP plans would cut the middle tax bracket for single filers making roughly $27,000 to $300,000 and married filers from $36,000 to $405,000. The tax bracket currently sits at 5.3% and would go down to 4.4%

The Evers administration’s budget director warns that extra tax cuts totaling more than $113 million this year and $319 million next year could put at risk more than $2 billion dollars in federal American Rescue Act money that came to the state.

"If you look at what other states around the country have done, they have done something similar to us," Vos countered.

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In July, Gov. Tony Evers partially vetoed the same Republican middle tax bracket cut, along with one for the highest bracket. Republicans did not include the cut for the highest bracket in this latest plan.

"There will be money available for them to do the right thing, especially on child care," Evers said at the time.

Evers called the Legislature into a special session set for Sept. 20. He asks the Legislature to use $1 billion dollars to keep a grant program open that goes to child care providers. The governor also called for paid family leave and other projects.

Wisconsin Capitol, Madison

"Child care is super important, it’s super expensive, my kids are teenagers and luckily, I'm past worrying about child care," said Serena Vasquez of Oak Creek. "All of my friends are starting to have kids and everything now and know that’s important, as well as being able to take time off for anything that comes up with the kids."

"It’s kind of preposterous that we would say we’re going to take taxpayer dollars from everybody, subsidize one specific industry like child care," said Vos. "We are not going to increase pay for child care workers by making everyone else pay more."

Republicans are fast tracking the proposal for tax cuts. An assembly committee will host a public hearing on the bill this week, and Speaker Vos says he wants to pass it right after Labor Day. If Evers signs off, it would be in place as taxpayers file in 2024. The governor previously said he was open to some tax cuts, if Republicans agreed to fund some of the priorities he laid out for the special session.