(The Center Square) – Wisconsin Democratic Gov. Tony Evers touted tax cuts in his recent budget proposal speech, but Republican budget leaders estimated that the governor’s proposal actually involves more than $3 billion in tax increases.
Rep. Mark Born, R-Beaver Dam, said that the governor’s overall budget proposal would take Wisconsin’s biennial budget from less than $100 billion to more than $119 billion.
“We knew he would grow government but, when you actually see the level of the numbers, it’s kind of stunning,” Born said.
It would also add another 1,300 employees paid for with general purpose revenue.
“I think the biggest shocker to us was – we knew he would increase taxes, he’s always increased taxes – but last night all we heard about were his tax cuts,” Born said. “But, when you start looking at all these tax increases, they far exceed the cuts.”
Evers said his budget proposal included a plan eliminate income tax on tips, incentivize local governments to freeze property taxes though state payments and creating a Prescription Drug Affordability Review Board.
Evers also proposed doubling the amount of income exempt from taxes to the first $1,200 each person earns.
Born said that it was a positive step that the governor acknowledged something needed to be done with two of the state’s prisons, but that the proposed plan was not realistic and would require work.
The Libertarian Party of Wisconsin, meanwhile, raised concern over a new proposed tax on Wisconsin’s highest earners.
The party compared the tax to a 2012 proposal in France to increase the top marginal tax rate by 75%, which was projected to lead to 30 billion more Euros and instead raised less than half of that and was then rescinded.
“What France learned then and what Evers will learn now is that when you try to tax the one class of people who can, and did, relocate to find a better tax climate, your tax revenue will decrease and fall short of projections while you are saddled with the increase in spending,” the Libertarian Party said in a statement.
Wisconsin is projected to end the fiscal year with a $4.3 billion surplus, which Republican leaders have said should be returned to taxpayers.
The Libertarian Party agreed.
“The LPWI asks that the governor find ways to economize and save money before deciding to spend even more and raise taxes that are likely going to be uncollected,” the group said.