Evers budget would cut middle class income taxes

MADISON, Wis. (AP) - Income taxes for the middle class would be cut 10 percent under Democratic Gov. Tony Evers’ first budget.

He would also limit a 30 percent capital gains exclusion to single people earning less than $100,000 and couples earning less than $150,000.

Overall, taxes would increase about $550 million over the next two years. The state has a $616 million budget surplus now, but under Evers’ budget released Thursday it would end with just $20 million.

Evers is also calling for a new child care tax credit equal to 50 percent of the same federal credit. And first-time homebuyers could subtract up to $5,000 a year, $10,000 for married couples, in accounts to pay for home purchases that would grow tax-free.

Property taxes on the median-valued home would increase $50 in each of the next two years.