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Wisconsin governor vetoes tax plan; early showdown with GOP

By SCOTT BAUER, Associated Press

MADISON, Wis. (AP) — Gov. Tony Evers vetoed on Wednesday a GOP proposal to reduce income taxes in an early showdown with legislative Republicans who had moved to weaken the Democrat’s powers just weeks before he took office.

Republicans rushed to pass the bill, the first they introduced this year, before Evers could introduce his own income-tax plan next week. Democrats quickly labeled the push a stunt.
The Republicans who control the state Legislature lack the votes needed to override Evers’ veto.

The veto just six weeks after Evers took office could be a sign of more conflict to come with Republicans in the Legislature. Both sides have vowed to work together but have shown little willingness to compromise on big issues so far.

“I am troubled and disappointed that this major fiscal policy was introduced and passed without bipartisan support and cooperation,” Evers said in his veto message. “The people of the State of Wisconsin expect and deserve for their leaders to work together, and I plan to do my part to ensure that happens.”

Evers, the former state schools chief, stopped Gov. Scott Walker’s bid for a third term in a November election in which Democrats dominated statewide races. But Republicans struck back in an acrimonious lame-duck session, passing legislation signed by Walker that cut into the powers of both Evers and the newly elected attorney general, Josh Kaul.

However, they did not curb Evers’ veto power . He used it Wednesday, the first time he was given a bill to sign or reject.

Evers’ veto shows that “the bipartisanship message he preached during his campaign was nothing more than a smoke screen,” said Republican Rep. John Nygren, a chairman of the Legislature’s budget committee.

Republican Senate Majority Leader Scott Fitzgerald said the veto was unfortunate and that Republicans would “redouble our efforts” to fight for an income-tax reduction that doesn’t raise taxes on businesses.

Evers and Republicans both said they wanted to reduce income taxes for the middle class but couldn’t agree on how to pay for the reduction. Evers wanted to pay for his proposed reduction by nearly eliminating a tax credit that now mostly benefits manufacturers..

Republicans, in contrast, want to tap a budget surplus and rely on future revenue growth to pay for the reduction in future years. They devised the manufacturing tax credit and say reducing it would amounts to a tax increase that would hurt Wisconsin’s economy. Democrats deem the tax credit a giveaway to millionaires and say there’s no evidence that it has helped the economy as much as Republicans say.

Tax cuts and other major spending proposals are typically considered as part of the two-year state budget. Evers is to release his first budget on Feb. 28. That will give him and lawmakers another chance to reach a compromise on the income-tax reduction.

The bill Evers vetoed would eventually have reduced income taxes by $340 million a year, which comes to about $170 for the average individual. Evers’ proposal would cut income taxes by about $415 million a year, which comes to about $225 for each tax filer.

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