The bill, called the "Blueprint for Prosperity" would cut property taxes by more than $400 million and cut income taxes by $98 million.
Republicans say this bill lets taxpayers keep more of their money.
"We're going to allow you to keep that money and spend it throughout the course of the year," Senate Majority Leader Mike Ellis (R) - Neenah says. "That's over $335 million so that will pump more money back into the economy."
Democrats want to see some saved for a rainy day fund - or spent on public education
"This surplus of $900 why don't we fix the local roads so it's a matter of principal", Sen. Dave Hansen (D) - Green Bay says. "More money could have gone into public education or the rainy day fund which puts us in a better situation and not out everything on a credit card down the road for future generations."
Governor Walker released a statement after today's vote. In it, he said "the facts show our historic reforms are working, and our state is in much better financial and economic shape than it was just four years ago. Instead of budget deficits, Wisconsin is producing budget surpluses."
The bill now goes to the state assembly.
Copyright Copyright 2014 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.