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Evers vetoes no tax on tips, ICE cooperation bills
On Friday, Wisconsin Gov. Tony Evers vetoed two Republican-backed bills that would have exempted cash tips and overtime pay from state income taxes.
Evers objected to tying state tax policy to federal changes controlled by Congress and argued the overtime exemption would treat workers earning similar wages differently based on employment classification.
Assembly Bill 461 would have allowed deductions up to $12,500 for single filers or $25,000 for joint filers on overtime income, targeting middle-income residents with phase-outs between $150,000 and $275,000 individually.
Joint Finance Committee co-chair Rep. Mark Born, R-Beaver Dam, called the veto 'unbelievable' amid Wisconsin's surplus, while U.S. Rep. Tom Tiffany, the Republican gubernatorial frontrunner, pledged earlier this week to sign the bills if elected.
Evers cited a Wisconsin Policy Forum report showing the state's tax burden ranks in the bottom 16 nationally, maintaining tax relief must be 'real, responsible, and targeted to the middle class' without forcing service cuts.