Wisconsin income tax cut debate; budget proposal nears Evers' desk
MADISON, Wis. - The Republican-controlled Wisconsin Senate debated using an expected $7 billion surplus to cut incomes taxes Wednesday, June 28.
Democrats are critical of the GOP plan, saying the cuts favor the rich and the surplus should go toward other programs.
"Creating problems for generations to come by cutting the tax rate for the richest to the degree where they are going to be seeing the largest benefit out of this, and those who are struggling the most will get a pittance," said State Sen. Chris Larson (D-Milwaukee).
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The debate over the next two-year budget touches almost everything from schools to roads to taxpayers' wallets.
"Wisconsin’s tax structure will soon be flatter and fairer," said Senate Majority Leader Devin LeMahieu (R-Oostburg). "Middle-class families will have less money withheld from their paycheck and more money for gas and groceries."
Republicans want $3.5 billion in income tax cuts that would affect each tax bracket, and Democrats argued the rich would gain a lot more than others. The average cuts are as follows:
- For people making $25,000-$30,000 – $15
- For people making $60,0000-$70,000 – $250
- For people making $250,000-$350,000 – $2,157
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The Republican budget proposal would pump $125 million into fighting PFAS pollution, the so-called forever chemicals that have seeped into water supplies. It would also cut University of Wisconsin funding by $32 million – the same amount Republicans said the UW System uses for diversity, equity and inclusion programs.
The Senate debated Wednesday, and the Assembly will vote Thursday. It then heads to Gov. Tony Evers. The clock is ticking. If there's no approved budget by July, there won't be a state government shutdown – but current funding levels would continue until a new budget is approved.