Wisconsin Republicans push to cut taxes for the rich

The GOP-controlled Wisconsin Legislature is expected to vote this week on a $99 billion budget proposal, recommended by the Legislature’s Joint Committee on Finance on a 12-4 party-line vote on June 22, that includes $3.5 billion in income tax cuts and additional property tax reductions. The income tax cuts are disproportionately tilted to the wealthiest taxpayers.

Democratic Gov. Tony Evers had urged the Legislature to tax cuts for lower- and middle-income families instead and may veto all or part of the budget.

The joint committee’s Republican co-chairs, Sen. Howard Marklein and Rep. Mark Born, said in a joint statement: “Our $4.4 billion tax cut is the largest tax cut in the history of Wisconsin. We are cutting income taxes by $3.5 billion and property taxes by $795 million, along with finally ending the personal property tax once and for all. The average taxpayer will see a $573 decrease in their state income taxes beginning in 2023.”

The Wisconsin Examiner reported on June 23, however, that most Wisconsin taxpayers would actually save much less than that on their annual income taxes. Citing data from the Wisconsin Department of Revenue, the outlet noted that more than 80% of filers would save less than $573.

The GOP budget would reduce the number of income tax brackets and reduce the tax rates for each. Individuals earning more than $304,170 annually would pay 6.5% on their earnings, instead of the current rate of 7.65%, a 1.15% reduction. Those making less than $13,811 would see their tax rate cut from 3.54% to 3.5%, a reduction of just 0.04%.

The 11 taxpayers in the state with incomes of at least $75 million would save an average of $1.8 million under the proposal, the Examiner reported.

Democratic lawmakers oppose the GOP budget, noting that it also includes funding cuts for the University of Wisconsin System and child care programs.

“You had a choice between regular Wisconsinites and rich people, and you chose rich people,” said Rep. Tip McGuire on June 22, according to PBS Wisconsin. “Those issues were ignored, denied, for this, what they came out with today, which was primarily a tax cut for the very wealthy.”

Democratic Gov. Tony Evers proposed his own budget in February, lowering the tax burden by 10% for anyone making $100,000 or less.

Assuming the budget gets to his desk, Evers could veto it or veto specific line items. Evers has threatened to reject the whole package, which no governor has done since 1931.

Evers spokesperson Britt Cudaback tweeted a graph highlighting how slanted the income tax cuts are toward the richest earners.

”@GovEvers believes that when we deliver tax relief, it should be real, responsible and targeted to the middle class,” Cudaback said. “The GOP is doubling down on tax breaks for wealthy millionaires and billionaires instead of prioritizing relief for working families.”

Published with permission of The American Independent Foundation.