8-30-23 wisconsin republicans revive income tax cut

MADISON, Wis. (AP) — Wisconsin Assembly Republicans on Tuesday proposed a nearly $3 billion tax cut targeting the middle class, but it’s unclear whether Democratic Gov. Tony Evers is on board after he vetoed a similar tax cut just last month.  “We’re giving the governor a second chance to do the right thing,” Rep. Mark Born, co-chair of the Legislature’s budget-writing committee, said at a news conference announcing the plan.  Republicans called for tapping the state’s projected $4 billion budget surplus to pay for the tax cut, which would lower the state’s third income tax bracket from 5.3% to 4.4% and exclude the first $150,000 of a couple’s retirement income from taxes. That would apply to people over age 67.  The income tax cut would mean that taxes for income between $27,630 and $304,170 for individuals, and between $36,840 and $405,550 for married couples, would drop from 5.3% to 4.4%. Every joint filer earning between $18,420 and $405,550 would be taxed at the same 4.4% rate.  Evers vetoed that same income tax cut in the state budget. He had no immediate comment on the new Republican proposal, but his spokesperson Britt Cudaback posted reminders on social media that Republicans had rejected a 10% middle class income tax cut the governor previously proposed.   The retirement tax cut is a new proposal. It would exempt the first $100,000 from an individual’s retirement income from taxes and the first $150,000 from a couple’s income. Under current law, money withdrawn from an individual retirement account, 401(k) plan or other retirement savings accounts are subject to Wisconsin income tax.