Governor Evers Vetoes No Tax on Tips

Legislation that would end state income taxes on tips and overtime made its way to the Governor’s desk.  Despite support in the Legislature, the Governor vetoed the legislation.  The result will be that tips and overtime will not incur federal taxation but will still be taxed by the state of Wisconsin.  Small business owners with tipped employees were excited about the prospect, as it essentially would have given employees a small raise in take-home pay, without any extra compensation from the business.

Possible Deal Brewing on State’s Surplus

The state budget currently has a surplus of around $2.4 billion.  Republican Legislators and Governor Evers have been in negotiations on a plan that would spend that surplus.  Republicans are pushing for tax cuts.  Governor Evers is pushing for education funding.  Both sides have signaled they are close to a compromise.

Below is a quote from Assembly Speaker Robin Vos on the latest:

“Following intensive discussions with Governor Evers spanning almost a month, we are working towards returning the tax surplus to the people.

Our proposal encompasses property tax relief, rebate checks, tax exemption on tips and overtime, and enhanced special education funding for schools.

Let’s hope we can convene the Legislature (we need the GOP State Senate to agree) soon so we can get this package enacted.”