"The Wisconsin State Capitol" by Ander107 licensed under CC
Wisconsin taxpayers came close to receiving a major tax relief package this month before Senate Democrats caused the surplus deal to collapse at the finish line.
The $1.8 billion agreement negotiated between Governor Tony Evers and Republican legislative leaders, including Assembly Speaker Robin Vos and Senate Majority Leader Devin LeMahieu, would have directed surplus funds towards property tax reform, taxpayer rebate checks, increased school funding, special education investments, and the elimination of state income taxes on tips and overtime pay. Assembly Republicans rallied behind the proposal and passed the bill through the Assembly with a 61-32 vote.
The legislation represented one of the largest attempts at taxpayer relief in recent Wisconsin history. At a time when families continue dealing with high housing costs, inflation, and rising property taxes, supporters argued the package would have provided immediate financial relief while still maintaining strong state reserves.
Despite the benefits this legislation would’ve brought to Wisconsin taxpayers, the deal fell apart in the Senate. All 15 Senate Democrats voted against it. In their defense, Senate Minority Leader Dianne Hessellbein argued Democrats were excluded from negotiations, while also objecting to the scale of the tax relief provisions. Instead of lowering costs, Wisconsin Democrats decided to play politics.
Governor Evers has attempted to deflect and blame lawmakers for killing the deal. This is despite the fact he’s spent years vetoing and resisting Republican tax relief efforts. In 2023, Evers vetoed a $2 billion Republican tax cut bill, calling the proposal “completely unserious.” He also vetoed a separate $3 billion Republican-backed tax cut package in 2024. Instead of supporting broad-based tax relief, Evers has repeatedly blocked Republican efforts to return more surplus dollars to taxpayers.
Republicans also warned that allowing billions in surplus funds to remain in Madison would only encourage additional government spending in future budgets. Taxpayers deserve to keep more of their own money instead of watching the state continue to accumulate excess revenue.
A new Marquette Law School poll found that a strong majority of Wisconsin voters believed the surplus deal should have passed, including 77% of Republicans, 81% of independents, and 82% of Democrats. The bill would have lowered property taxes and provided income relief to Wisconsin’s working families at a time when they need it most.
While the proposal is dead for now, the fight over Wisconsin’s surplus is far from over.
Republican lawmakers are committed to pushing for taxpayer rebates and property tax relief during future budget negotiations, especially with billions still sitting in state accounts. Politicians in Madison need to listen to the voices of their constituents and provide relief from high costs and property taxes.