Wisconsin Gov. Tony Evers gives his annual State of the State address on Jan. 23, 2024, in Madison, Wisconsin. (AP Photo/Morry Gash)
The move is expected to cost the state about $73 million in annual revenue, according to the state Department of Revenue.
The measure was part of a package of tax cuts Republicans introduced in January. The legislation included the child care tax credit expansion; a bill that would have expanded the state’s second income tax bracket to cover higher earners, resulting in at least $750 million in income tax savings annually, according to legislative fiscal analysts; a bill that would have increased the marriage tax credit; and a bill that would have increased income exemptions for retirees.
Fiscal analysts projected that taken together the four bills reduced state tax revenue by $2 billion in 2024-25 and about $1.4 billion every year thereafter.
Evers vetoed all the bills except the child care tax credit expansion on Friday, saying the cuts would drain the state's reserves.
Evers vetoed a similar GOP tax cut plan in November. Republicans lumped all the proposals into a sweeping omnibus bill during that go-around. This time they broke the plans into separate legislation.
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The governor also used his partial veto powers in July to reduce a $3.5 billion income tax cut plan the GOP included in the state budget to just $175 million, which equated to a $3- per-month reduction for the average taxpayer.
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https://www.foxnews.com/politics/wisconsin-gov-evers-signs-massive-child-tax-credit-expansion