Wisconsin Republicans move forward with $3.4 billion in tax cuts

Republican legislators in Wisconsin are hoping to make the next state budget a “game changer” with a $3.4 billion tax cut package.

The Republicans who control the state’s budget writing panel, the Joint Finance Committee, approved the cuts last week, giving money back to citizens from an expected budget surplus.

“When we got news of the massive new surplus, we promised transformational tax cuts. Today, we’re delivering on that promise,” Senate Majority Leader Devin LeMahieu, R-Oostburg, said Thursday.

Wisconsin’s Legislative Fiscal Bureau this month reported the state will see an extra $4.4 billion in unanticipated tax revenue. Republicans have been promising for weeks to use the extra money to cut taxes.

On Thursday, they unveiled their plan, which includes:

• $2.3 billion income tax cut
• $650 million in property tax relief
• $200 million in personal property tax relief for businesses across the state

Republicans are also proposing $40 million over the next two years for tax cuts for active duty military members, and another $10 million to help parents pay for child care.

“This year has been incredibly difficult for individuals, families, and businesses, and this money will result in significant income, property, and personal property tax cuts to provide much needed relief,” JFC co-chair Sen. Howard Marklein, R-Spring Green, said.

Democratic lawmakers continue to say Wisconsin should spend the $4.4 billion in extra money on schools, roads, and daycare options for families.

But Republican Sen. Kathy Bernier, R-Chippewa Falls, said the tax cuts will help families more than any new state spending.

“The typical Wisconsin family will see $1,200 in savings ($900 in income taxes, $300 in property taxes) through this unprecedented plan,” Bernier said in a statement.

The question remains, however, what steps will Gov. Tony Evers take with the tax cut proposal?

The governor did not rule out tax cuts when he spoke to the Milwaukee Journal Sentinel earlier this month, but he also said he wanted to see some changes to the Republican’s overall budget formula.

"They have to fix the budget decisions that they’ve made already, especially around federal funding and our schools and our universities and our technical colleges," he said.

Evers, a Democrat, has said he’s not ruling out vetoing the entire state budget, which is due July 1.