On Thursday, I voted in favor of our fully-funded and common-sense middle-class tax cut plan. I'm very excited that we are delivering a real, middle-class tax cut for Wisconsin families.
The tax burden in our state is at a 50-year low. Republicans have lowered the tax burden for seven straight years and delivered more than $8 billion in tax relief. Today marks another important step in our goal of making our state the best place in the nation to live, work, raise a family, and retire.
The middle-class tax cut will provide $340 million per year in additional tax relief targeted to individuals making $100,000 or less and families making $150,000 or less. The average Wisconsin family would see roughly a 10 percent tax cut, which equates to about $300. By increasing the standard deduction, 75% of the tax cut benefits go to filers with incomes between $30,000 and $100,000. The proposal is paid for with the surplus created by careful budgeting by Republicans.
After criticizing the GOP middle-class tax cut as unsustainable, the Democrats introduced a tax plan that leaves nearly $400 million unfunded. Their plan also hikes taxes $518 million on small business manufacturers and companies. More than 6,000 filers will have an unpleasant surprise in the Democrats' plan - their taxes will actually go up!
At a time when we have a $2.4 billion budget surplus, raising taxes is the last thing we should do. Due to our conservative fiscal reforms, we have more than enough money to fund our priorities without raising taxes on manufacturers and job-creators across Wisconsin.
The Manufacturing and Agriculture Tax Credit directly impacts companies in every corner of Wisconsin. In fact, 87 percent of claimants are small businesses and many of those industries serve Wisconsin farmers. Democrats are proposing a half-billion dollar tax increase that will have dramatic impacts on manufacturers and the thousands of family-supporting jobs they create.
Our plan is already a compromise. With a $2.4 billion surplus, Republicans would prefer to deliver an even larger tax cut. Governor Evers campaigned on a 10% cut for middle-class taxpayers. That's what our version does, and it's paid for without raising taxes. I hope the Governor will start working with Republicans, because right now he's sending a bad message to job-creators.