Budget analysis: Gov. Evers cuts rainy day money, business tax relief
(The Center Square) – While Gov. Tony Evers is taking credit for signing most of Wisconsin’s new $87 billion budget, there are some parts he cut out.
CJ Szafir, president at the Institute for Reforming Government, said the governor cut a number of key provisions from the Republican spending plan.
“Governor Evers’ partial vetoes give state government over $1.25 billion more in revenue, rather than immediately increasing what Wisconsinites’ take home pay and further protecting taxpayers through a large rainy day fund deposit,” Szafir told The Center Square.
The governor vetoed deposits into the state’s rainy day fund worth about $550 million. He also vetoed new withholding tables, which Szafir said delays the benefits of the tax cuts.
Gov. Evers also vetoed the Republican repeal of the state’s personal property replacement tax.
“[That] tax leaves in place a $200 million tax that has hindered small businesses for years, increasing legal and compliance costs,” Szafir explained. “It’s a major issue for small businesses who have been impacted in the last year from Governor Evers’ COVID-19 business closures.”
The governor issued more than 50 partial vetoes of the new state budget, which Szafir said is low considering how much Evers criticized the Republican spending plan as recently as a few weeks ago.
“From the start, Gov. Evers has been leading from behind on the budget. In February he proposed an unrealistic, unserious budget that would have raised taxes by over $1 billion. The legislature’s budget scrapped the Governor’s proposals and built a budget that spends within our means and cuts taxes by over $3 billion,” Szafir said. “But now, Evers’ has the audacity to take credit for Republicans’ work, claiming that he’s kept his promises on lowering taxes on the middle class.”
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