Republicans announce $2.1 billion tax cut package aimed at low and middle earners

MADISON - Republican lawmakers who control the state Legislature are proposing a $2.1 billion tax package that would significantly expand the state's second-lowest tax bracket to include more than 1 million Wisconsin residents earning between $19,000 and $150,000 per year.

GOP leaders announced on Tuesday they would be releasing four bills that would overhaul the state's tax system by also exempting up to $75,000 of retirees' income and expanding tax credits for married filers and for filers with children.

Altogether, the measures would cost $2.1 billion in the 2024-25 fiscal year and $1.4 billion every year afterward, according to a nonpartisan analysis from the Legislative Fiscal Bureau. The measures would reduce the state's total income tax revenue by $2 billion per year in fiscal 2024-25 and $1.4 billion per year after that, according to the Legislative Fiscal Bureau.

The lawmakers announced their plan hours before Democratic Gov. Tony Evers is scheduled to deliver the annual State of the State Address during which he plans to address workforce challenges facing the state.

Evers in 2021 signed a $2 billion tax cut in the state budget but he and Republican lawmakers have largely failed to find consensus on how to cut income taxes in the state since.

Twice last year, Evers vetoed a GOP proposal to cut the income tax rate for the state's third tax bracket, which applies to joint filers earning up to $405,000 per year. Evers said at the time he would not sign into law a tax cut for wealthy earners.

Sen. Howard Marklein, R-Spring Green, said the new proposal to cut the tax rate from 5.3% to 4.4% is in response to Evers' previous vetoes.

"(Evers) has said many times that $150,000 is middle class ... governor, we've heard you," he said.

The lawmakers have not yet released the proposals' legislative language.

A spokeswoman for Evers said the governor will review the proposals once the bills are released.

"Beyond that, Gov. Evers looks forward to delivering his State of the State address at 7:00 p.m. tonight, where he will speak directly to Wisconsinites about the need to find bipartisan support for real, meaningful solutions to address our state’s chronic workforce challenges, including a long-term fix for our looming child care crisis," Spokeswoman Britt Cudaback said in an email.

Molly Beck can be reached at molly.beck@jrn.com.

This article originally appeared on Milwaukee Journal Sentinel: Wisconsin Republicans propose tax cut for low and middle earners