Wisconsin Gov. Tony Evers vetoes a proposed bill, made by Republican lawmakers in the state, that would provide a $2 billion tax in exchange for child care and other aid.
The Democratic governor called the Republicans' plan "completely unserious" and argued that it "fails to meaningfully and sensibly address" the state's workforce issues. In August, Evers called on lawmakers to support his plan to funnel $1 billion into childcare services and workforce programs in a special legislative session.
Tony Evers Vetoes Republican-Led Proposal
However, Republican leaders immediately criticized the amount of spending that the Wisconsin governor was proposing at the time. Instead, they gutted Evers' proposal and rewrote it with their own provisions.
Last week, the GOP-led legislature sent the legislation that they revised to the Wisconsin governor. After vetoing the bill on Monday, Evers said that Republicans have not yet wrapped their heads around the state's challenges. He added that their inability to take the issue seriously will affect a lot of lives in the state, as per the Milwaukee Journal Sentinel.
The proposal from GOP lawmakers would have reduced taxes for Wisconsinites in the state's broad third income tax bracket. Additionally, it would have increased the amount of the state credit that a taxpayer can claim for dependents and increased the amount of money that parents can deduct for sending their children to private school.
The bill also included a provision to overhaul licensing in Wisconsin and add more requirements to receive government assistance while unemployed. The two proposals both leaned on the state's $4.1 billion budget surplus.
The proposal that Evers vetoed sought to reduce Wisconsin's second-highest income tax rate from 5.3% to 4.4%. It would have lowered taxes for individuals who earn between $27,630 and $304,170 and for married couples who earn between $36,840 and $405,550 per year.
The governor's veto of the bill came as expected as he completely opposed the Republican proposal the moment that it was introduced as a substitute to his own package. The situation comes as Republicans in the state do not have enough votes and are unable to override the veto without help from Democrats, according to CBS News.
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Proposed Tax Cuts
Republican Senate Majority Leader Devin LeMahieu said that the proposal that the governor vetoed would have given meaningful relief for families in the state to address inflation and rising childcare costs.
On the other hand, the bill that Evers proposed would have used $365 million on child care, $65 million for funding for the University of Wisconsin, $200 million for a new engineering building at UW-Madison, and $243 million toward a 12-week family medical leave program for workers within the state.
Childcare providers have argued that the provisions of the Republican-led proposal were inadequate in the face of their greater need for ongoing supplemental revenue. Such funding would allow them to improve employees' pay without raising tuition.
Furthermore, the structure of the child tax care credit expansion resulted in a larger subsidy for high-income taxpayers compared to taxpayers with lower incomes but the same child care costs, said the Wisconsin Examiner.
