Evers-O-Meter

Cut middle-class income taxes by 10 percent

Evers said he would cut income taxes in his first budget by 10 percent for individuals making up to $100,000 and families making up to $150,000. He would pay for it by limiting the manufacturers and agricultural tax credit. 

 

Subjects: Taxes

Updates

Budget includes a tax cut, but not quite what Evers proposed

On the campaign trail, Gov. Tony Evers promised a middle class tax cut -- a 10% income tax reduction for individuals making up to $100,000 a year and families making up to $150,000. 

The plan would have amounted to a cut of about $216 per person each year.

Evers wanted to pay for it by rolling back the manufacturers and agricultural tax credit, put in place by Republicans. But Republican lawmakers rejected the proposal in favor of their own plan. That was left intact after Evers issued his vetoes to the budget.

The end result: The $81.7 billion budget for 2019-21 reduces the state's two lowest income tax brackets and when coupled with other legislation with bipartisan support from Evers and Republicans, income taxes will be reduced by $75 on average per person in 2019 and $136 in 2020, or about half what Evers proposed.

We rate this promise Compromise

Sources:

U.S. News and World Report, Wisconsin Republicans Plan $400 million income tax cut, June 10, 2019

The Capital Times, Wisconsin budget committee approves more than $450 million in income tax cuts, June 13, 2019

Wisconsin State Journal, Republicans eye $400 million middle class tax cut as part of state budget, June 12, 2019

Milwaukee Journal Sentinel, Tony Evers uses his vast veto power to raise school spending another $65 million, wipe out Tesla provision, July 3, 2019

Wisconsin Public Radio, Republican-Led Finance Committee Passes State Budget, June 13, 2019

Proposal is included in budget, which awaits legislative action

Gov. Tony Evers pledged in October 2018, the month before the election, that low- and middle-income taxpayers would get a break under his administration.

He said on his campaign website that "everyone with annual incomes up to $100,000 would receive a 10% tax cut."

The actual proposal in his first budget lines up, according to the state's nonpartisan Legislative Fiscal Bureau. In its analysis, the agency said a "Family and Individual Reinvestment" credit would be available to all taxpayers with a state adjusted gross income below $100,000, or below $150,000 if married filing jointly.

The credit would reduce tax liability by 10 percent or $100, whichever is greater. So it actually extends the promise by establishing a minimum payout.

This remains just a proposal, however, with the budget awaiting action in the GOP-controlled Legislature, we rate this promise In the Works.

 

Sources:

Tony Evers campaign web site, Evers Calls for 10% Tax Cut for Middle-Class Families, Oct. 14, 2018

Tax Foundation, Income Tax Credits Paired with Numerous Tax Increases in Wisconsin Gov. Evers' Budget, March 21, 2019

Legislative Fiscal Bureau, Summary of Governor's Budget Recommendations - March, 2019 (by Agency), General Fund Taxes, March 26, 2019