Thursday, November 1, 2012

Who Would a Move to a Flat Tax Benefit?

Source: The Wisconsin Budget Project
by John Peacock

Should Wisconsin make changes to its income tax structure that would cut income taxes for big earners and raise taxes on those least able to afford it?

That's the path some legislators believe Wisconsin should follow...

Legislators have laid out their priorities for the next legislative session, which begins in January 2013, and changes to the individual income tax rank high on some legislators' lists. Rep. Robin Vos has said he will work towards making the income tax "flatter" -- an action that, depending on how it is carried out, could cut taxes for big earners and raise taxes for everybody else.

Another possible consequence of big changes to our income tax structure could be the loss of revenue the state needs to make investments in schools and health care -- the kind of investments that are important for insuring that Wisconsin has a healthy, well-educated workforce.

The potential loss of resources is especially concerning Wisconsin already has more than a billion dollars of phased-in tax cuts that are scheduled to be implemented over the next five years.

Given the substantial price tag of the tax cuts are coming due in the next few years, the state should proceed with caution in implementing new tax breaks, especially for the best off. Visit the Wisconsin Budget Project's newly-redesigned blog to learn more about how changes to our state's income tax structure could have a negative effect on Wisconsin.

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