Relating to: onetime individual income tax rebates. (FE)

Wisconsin Republicans in the state Senate scuttled a proposed $1.8 billion budget surplus deal on Wednesday, killing plans for one-time rebate checks to taxpayers. The measure, which would have sent $600 to married couples and $300 to single filers who paid 2024 taxes, cleared the Assembly but fell short in the Senate amid dissent from GOP senators like Chris Kapenga and Steve Nass. No forms were needed for the automatic refunds, with checks targeted for delivery by September if approved.

Negotiations between Gov. Tony Evers and Republican leaders had produced the compromise after months of talks, tapping the state's surplus for $850 million in rebates, tax cuts on overtime and tips, plus $650 million for K-12 schools and property tax relief—including $350 million to ease homeowner bills. The Wisconsin State Legislature's plan mirrored federal tax breaks but made Wisconsin's permanent. Senate Republicans hold an 18-15 edge, but opposition forced the bill's failure despite Assembly passage.

Milwaukee residents feel the pinch most, with high property taxes and living costs squeezing families amid inflation. Without rebates or relief, locals miss out on immediate cash for groceries, utilities or rent, while schools in districts like Milwaukee Public Schools lose funding boosts that could stabilize taxes.

Lawmakers may reconvene in special session to revive parts of the deal or craft alternatives before the surplus window closes.