Revised Senate Plan Raises Taxes for Many Wisconsinites

Tuesday, November 21, 2017 at 4:16 PM by
Wisconsin is One of 19 States Expected to Have a Net Increase in Taxes

House Bill’s Increase in Child Tax Credit Excludes Many Children in Working Families

Tuesday, November 14, 2017 at 11:05 AM by

Congressional leaders misleadingly argue that their tax cut plan would benefit working families because it increases the maximum value of the federal Child Tax Credit (CTC). However, that part of the House bill completely excludes 159,000 children in Wisconsin whose parents work in low-paying jobs, according to a new analysis.

House leaders intend to hold a floor vote on their tax plan this week. The Senate tax plan is likely to be voted on after Thanksgiving.

About one in three Wisconsin children in working families would either be excluded entirely or only partially benefit from the proposed increase in the CTC, according new report from the Washington, DC-based Center on Budget and Policy Priorities.  Read more

More than a Quarter of a Million Wisconsin Taxpayers Would Have a Tax Hike under Senate plan

Monday, November 13, 2017 at 3:14 PM by

Nearly 300,000 Wisconsin taxpayers would pay more in federal income taxes under a plan released on November 9 by Republican leaders in the U.S. Senate. That means about nine percent of all taxpayers in the state, or 1 out of 11 taxpayers – would pay more under the Senate plan. And if you consider who will wind up paying for the deficit-financed tax cuts in the long run, the number of low- and middle-income Wisconsin residents who would be worse off under the bill is likely to swell.

About 89,000 of the Wisconsin taxpayers with tax hikes are in the bottom 60% of the income spectrum, with incomes of less than $95,000. The average annual tax increase for those taxpayers would be $680. Figures are for 2027, when the permanent effects of the tax changes are in force. Read more

What the Details of the Trump-House GOP Tax Plan Mean for Wisconsin Taxpayers, in Five Charts

Thursday, November 9, 2017 at 11:11 AM by

New details about the tax plan being advanced by President Trump and Republican leaders in the U.S. House of Representatives show that the plan would mostly benefit the extremely rich, despite initial claims by proponents that it would be targeted at members of the middle class.

Provisions included in the tax framework include:

  • Reducing the corporate income tax rate from 35% to 20%;
  • Eliminating the Alternative Minimum Tax, which insures that wealthy individuals pay at least some level of federal income tax;
  • Eliminating the estate tax. Currently, only estates of more than $5.5 million for individuals or $11 million for couples pay any estate tax;
  • Reducing the number of income tax brackets;
  • Doubling the amount of the standard deduction and eliminating the personal exemption; and
  • Ending the deduction for state income taxes, and capping the deduction for local property taxes.

Republican leaders released the details of the plan earlier this month, allowing the Institute for Taxation and Economic Policy to model how the provisions would affect taxpayers in different states. Read more

The Top Ten Most Surprising Changes in the House Tax Plan

Wednesday, November 8, 2017 at 7:05 PM by

As I’ve been gradually working my way through an 80-page summary of the tax cut plan that was introduced by House leaders last week, I’ve found a number of things that strike me as surprising. Based on what I’ve read thus far, here’s a subjective list of proposals that I wouldn’t have predicted would be in the plan, if you asked me about it several months ago.

These aren’t the things that concern me the most about the bill (except for # 10), and I haven’t formed an opinion about all of them. These are simply some proposals that I think are worth drawing attention to because we hadn’t necessarily anticipated them, and because some might slip by under the radar if Congress rushes the bill to the floor by the end of the month (which seems to be the plan). Read more

Republican Tax Plan Remains a Huge Windfall for the Wealthy

Thursday, November 2, 2017 at 6:13 PM by

The tax cut plan unveiled today by House Republicans would provide a massive windfall to corporations and the wealthiest Americans, while hurting some taxpayers and substantially increasing the federal deficit.

We don’t yet have updated calculations of how the revised plan will redistribute taxes among different income groups, but the modest revisions to the plan won’t significantly change the previous calculations – which found that 80% of the tax cuts in the initial plan would go to the top 1% of Americans. (See Figure 2 in this Oct. 27th analysis by the nonpartisan Tax Policy Center.)

Here are some of the reasons why the latest proposal, which would add at least $1.5 trillion to the federal deficit over the next 10 years, would primarily benefit wealthy households and corporations:

  • Even though the tax plan does not cut the top individual income tax rate, the new tax brackets benefit the wealthy.
Read more

Wisconsin’s Prison Price Tag: Still Growing

Tuesday, October 31, 2017 at 1:34 PM by
A leading official in Governor Walker’s administration has said that the state will need to spend more money – soon – to expand the state’s prison capacity. State policymakers should take this opportunity to reform the state’s corrections system in a way that locks up fewer people, keeps costs down, and protects public safety.

Rural, Northern Wisconsin Projected to Lose Large Numbers of Children in Coming Years

Thursday, October 19, 2017 at 7:48 AM by
In some areas of northern and central Wisconsin, the number of children is expected to decline by up to a quarter over the next 25 years, presenting a host of challenges to communities that are already struggling to stay economically vibrant.
Categories: Blog, EDUCATION, Home Tab 2, K-12 | Comments Off on Rural, Northern Wisconsin Projected to Lose Large Numbers of Children in Coming Years

Wisconsin’s Tax Ranking Drops, but Pace of Job Creation Stays Slow

Tuesday, October 17, 2017 at 9:16 AM by
Wisconsin’s ranking among the states in many measures of government revenue and spending has dropped considerably since about 2000, but that hasn’t translated into an increased pace of job creation.
Categories: Blog, Home Tab 3, STATE TAXES, taxes | Comments Off on Wisconsin’s Tax Ranking Drops, but Pace of Job Creation Stays Slow

What the Trump Tax Plan Means for Wisconsin Taxpayers, in Six Charts

Friday, October 6, 2017 at 12:00 PM by

The tax plan being advanced by President Trump and Republican members of Congress would mostly benefit the extremely rich, despite initial claims by proponents that it would be targeted at members of the middle class.

Provisions included in the tax framework include:

  • Reducing the corporate income tax rate from 35% to 20%;
  • Eliminating the Alternative Minimum Tax, which insures that wealthy individuals pay at least some level of federal income tax;
  • Eliminating the estate tax. Currently, only estates of more than $5.5 million for individuals or $11 million for couples pay any estate tax;
  • Reducing the number of income tax brackets;
  • Doubling the amount of the standard deduction and eliminating the personal exemption; and
  • Ending the deduction for state and local taxes paid.

Using data from an analysis by the Institute on Taxation and Economic Policy, we have prepared six charts that show how the Trump-GOP tax framework would affect Wisconsin taxpayers:

1. Read more