The Sconi

Governor Tony Evers of Wisconsin has proposed an increase in state spending by 20 percent for the 2025-27 biennium, which amounts to $119 billion. To support this budget proposal, Governor Evers is suggesting the implementation of new taxes and fees. The Legislative Fiscal Bureau indicates that the proposed budget would involve raising state taxes by $2.2 billion and fees by $356 million.

Part of the proposal includes instituting a new individual income tax rate of 9.8 percent on income exceeding $1 million, or $500,000 for married separate filers, expected to generate $1.3 billion. Additionally, the proposal aims to limit the Manufacturing and Agriculture Tax Credit, potentially bringing in $792.2 million.

The budget outlines other measures designed to create new revenue streams estimated at $189.4 million. These include updates to match federal Internal Revenue Code provisions, limiting capital gains exclusions, and increasing the wage threshold for certain tax credits. The Governor’s proposal also includes increased motor vehicle-related fees, such as those for title and transfer, and driver's license renewals.

Governor Evers also plans to reduce taxes by increasing personal exemptions, creating sales tax exemptions for residential electricity and natural gas, expanding the Homestead Tax Credit, excluding cash tips from individual taxes, and exempting over-the-counter drugs from the sales and use tax. Overall, the Legislative Fiscal Bureau reports that the budget includes $3.1 billion in tax increases and $824.5 million in tax reductions.

The Wisconsin Joint Finance Committee will conduct public hearings on the proposed budget at various locations. The hearings are scheduled for April 4 at Wisconsin State Fair Park in West Allis, April 28 at Hayward High School Auditorium, and April 29 at Northcentral Technical College in Wausau. Attendees wishing to testify must complete a registration form upon arrival.

For constituents unable to attend hearings, the Joint Finance Committee offers an online portal for public input at https://legis.wisconsin.gov/topics/budgetcomments. Feedback can also be sent via email to budget.comments@legis.wisconsin.gov, or by mail to Joe Malkasian at the State Capitol in Madison. The committee assures that all comments will be reviewed by its members.