MADISON, WI (AP) — 1:03 p.m. UPDATE: Wisconsin Gov. Tony Evers says he “can’t understand” why Republicans would tap state reserves to pay for a middle class tax cut, but he’s stopping short of promising to veto their proposal.
The Assembly was voting on the Republican bill Tuesday with the Senate expected to give final approval on Wednesday.
Evers wants to pay for a middle class tax cut by all-but eliminating a manufacturing tax credit program. Republicans oppose that and instead want to use budget reserves.
Evers tells reporters he remains hopeful that a compromise can be reached but “we believe our proposal is the best one.”
Evers wouldn’t comment on a veto, but says “I can’t understand how we can possibly use up all the surplus for this and then ignore the rest of the budget.”
8 a.m. UPDATE: Wisconsin Republicans are moving closer to passing their tax cut plan on to Democratic Gov. Tony Evers.
The Assembly is set to vote on the proposal Tuesday afternoon.
Approval would send the legislation to the Senate, which is scheduled to convene Wednesday. But the plan looks doomed.
The bill calls for tapping a budget surplus to pay for a $340 million annual tax cut for middle- and low-income single and joint filers.
Evers has signaled he won’t sign a bill that backfills the lost revenue with the surplus.
He has revealed his own plan that calls for cutting taxes by about $415 million per year.
The governor would cap a Republican-authored manufacturing tax credit to pay for half of the cut.
He hasn’t said how he’d fund the other half.