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

Wisconsin’s Lagging Income Growth Boosts Federal Share of Medicaid Costs

Wednesday, October 4, 2017 at 5:37 PM by

A state’s lagging economic performance can have a silver lining – in the form of increased federal assistance. Thanks to a Medicaid formula that currently provides more generous cost-sharing to states that are below average in per capita income, Wisconsin’s rather anemic personal income growth will save the state millions of dollars during the 2017-19 budget period.

However, that feature of Medicaid funding allocations could be gone in a few years if Congress approves the recent Republican proposals that would block grant or cap each state’s allocation. Read more

New ACA Repeal Plan Expected to Cost Wisconsin $29 Billion by 2036

Friday, September 22, 2017 at 12:50 PM by
The new proposal to repeal the Affordable Care Act (ACA) is estimated to reduce federal health care funding for Wisconsin by $29 billion from 2020 through 2036. That’s the conclusion of an analysis released on September 21 by Avalere Health. The Avalere analysis helps illustrate why the new ACA repeal and replace plan, like the ones before it, would result in at least 20 million fewer Americans with health insurance by 2021. And under this plan offered by Senators Graham and Cassidy, the rapid drop in insurance coverage could reach 32 million in 2027, according to a report issued today by the Brookings Institute. The new proposal would make insurance far less affordable for many who now use the subsidized ACA marketplace and would force states to make deep cuts in Medicaid services for children, seniors and people with disabilities.
Categories: BadgerCare Plus, Blog, federal issues, health care reform, Medicaid | Comments Off on New ACA Repeal Plan Expected to Cost Wisconsin $29 Billion by 2036

Speaker Ryan Would Exacerbate a Problem that He Says Is a Concern

Thursday, August 31, 2017 at 12:56 PM by
Several important public benefit programs provide strong incentives to work, but you wouldn’t know that when you listen to Speaker Paul Ryan talk about those programs. He has been using half-truths to create a very distorted impression of public benefits, as he seeks to advance an agenda that would further shift federal tax and budget policy in favor of the very wealthy, at the expense of low-income households.
Categories: Blog, EITC, federal issues, Medicaid, refundable tax credits, taxes | Comments Off on Speaker Ryan Would Exacerbate a Problem that He Says Is a Concern

ACA Repeal “Fixes” Continue to Shortchange Wisconsin

Monday, July 24, 2017 at 5:08 PM by

The legislation to repeal and replace the Affordable Care Act (ACA) can’t be fixed, but Senator McConnell and President Trump are still trying to revive it. McConnell plans to have a vote on July 25 on a procedural measure to initiate floor debate on the bill.

The conclusion that the bill isn’t fixable is reinforced by the badly flawed amendments that have been suggested as ways of getting a few more Senate Republicans to vote for the bill. One of the many problems with the following amendments is that each of them would adversely affect Wisconsin: Read more

Categories: Blog, federal issues, HEALTH & HUMAN SERVICES, health care reform, Medicaid | Comments Off on ACA Repeal “Fixes” Continue to Shortchange Wisconsin

Trump Tax Plan Primarily Benefits the Richest Americans

Thursday, July 20, 2017 at 12:57 PM by

Trump’s Tax Proposals Would Give Richest 1 Percent of Wisconsin Taxpayers an Average $117,000 Tax Cut, and More than Half of the Total Cuts

The federal tax reform plan outlined by President Trump in April would fail to deliver on its promise of largely helping middle-class taxpayers, according to a new analysis from the Institute on Taxation and Economic Policy (ITEP). Their July 20th report concludes that the President’s proposals would shower 61.4% of the total tax cut on the richest 1 percent of Americans.

ITEP’s analysis examines the overall effect of the Trump tax plan on federal revenue, as well as its impact on taxpayers in each of the 50 states. In sum, the plan would slash federal revenue by $4.8 trillion over the next decade.

The proposed tax cuts that primarily benefit the very wealthy would come with a heavy cost for vital program and services. Reducing investments in education, health care, food assistance, and other critical programs is too steep a price to pay for giving the very rich a tax cut that exceeds twice the income of the typical Wisconsin worker. Read more

Categories: Blog, FEDERAL BUDGET & TAXES, federal issues | Comments Off on Trump Tax Plan Primarily Benefits the Richest Americans

Repeal without Replacing: A Health Care Disaster

Tuesday, July 18, 2017 at 6:13 PM by

A month or two ago, President Trump described the House plan to repeal and replace the Affordable Care Act (ACA) as being “mean,” and he was right. Yet today he endorsed a far meaner approach – repealing the ACA without a replacement plan – even though he was the one who shot down that idea when Congress was considering it back in January, and despite the fact that a wealth of data demonstrate what a disaster that approach would be.

Senator McConnell is trying to breathe life into the strategy of repealing the ACA without first coming up with a replacement. That became his fallback plan today after it became apparent late yesterday that there aren’t enough votes to even begin the floor debate on the extremely unpopular “repeal and replace” plan, which a small group of Senators spent the last couple of months developing behind closed doors.

President Trump endorsed the new strategy, but some of the other Republican lawmakers who opposed the idea early this year – and whose positions are less fluid than Trump’s – have said they are still unwilling to wipe away the current law without having a replacement plan. Read more

Categories: Blog, federal issues, HEALTH & HUMAN SERVICES, health care reform | Comments Off on Repeal without Replacing: A Health Care Disaster

Wisconsin Bill Does Little to Protect People with Preexisting Conditions

Monday, June 26, 2017 at 5:54 PM by

Bill Passed by Assembly Fails to Close a Huge Loophole Proposed by Republicans in Congress

One of the many problems with the bill to repeal and partially replace the Affordable Care Act (ACA) is that it would seriously erode the current protections for millions of Americans who have preexisting health conditions. That’s a very unpopular part of the American Health Care Act (AHCA), the Republican health care bill, but there’s a lot of confusion about how it undermines coverage for people with chronic health conditions.

The confusion was evident during a late night debate in the Wisconsin legislature last week, when the Assembly passed a bill that would purportedly protect people with preexisting conditions, but which largely misses the mark because it fails to address a huge loophole contained in AHCA. The muddled debate after midnight on June 22nd is a great example of why there needs to be a longer and more open debate about the version of AHCA that was developed behind closed doors in recent weeks. Read more

Categories: Blog, federal issues, HEALTH & HUMAN SERVICES, health care reform | Comments Off on Wisconsin Bill Does Little to Protect People with Preexisting Conditions

President Trump’s Budget Would Make it Harder for Wisconsin to Strengthen its Workforce

Monday, June 19, 2017 at 10:49 AM by

President Trump visited the Milwaukee area last week, tweeting that he was “heading to the Great State of Wisconsin to talk about “JOBS, JOBS, JOBS!” Expanding opportunities for workers and developing the state’s workforce should be a top priority for policymakers at both the state and federal levels, but President Trump’s rhetoric doesn’t match his actions on this issue. His proposed budget makes deep cuts to the federal resources that Wisconsin uses to develop the state’s skilled and work-ready labor force.

Trump jobs tweet

In his visit to Waukesha County Technical College, President Trump emphasized the importance of developing a skilled workforce, declaring that “America must not only teach, but celebrate skilled labor.” But the 2018 budget he proposed would deeply cut federal funding for programs and services that states deliver that are critical for the development of a healthy, well-educated workforce – programs like Medicaid, which helps people with low incomes see a doctor when they need one, and SNAP (previously known as food stamps), which helps people with low incomes put food on the table. Read more

Categories: Blog, FEDERAL BUDGET & TAXES, JOBS & THE ECONOMY | Comments Off on President Trump’s Budget Would Make it Harder for Wisconsin to Strengthen its Workforce

Efforts to Repeal and Replace the ACA Boost the Current Law’s Support

Tuesday, June 6, 2017 at 5:23 PM by

Polling Shows Public Opposition to House Bill and to Medicaid Changes

The more that Congress extends the debate about the Affordable Care Act (ACA), the stronger support gets for the existing law. And as people learn more about the American Health Care Act (AHCA), which is the bill the House passed last month that would repeal and replace the ACA, the more they dislike the House plan.

The latest survey results from the Kaiser Health Tracking Poll show that the majority of Americans, 55 percent, are not pleased with AHCA.   The poll also found that:

  • 55% of the public want the Senate to make major changes to the bill or just not pass it all.
  • Only 31% view the AHCA favorably, vs 49% who view the ACA favorably.
Read more
Categories: Blog, FEDERAL BUDGET & TAXES, federal issues, HEALTH & HUMAN SERVICES, health care reform, Medicaid | Comments Off on Efforts to Repeal and Replace the ACA Boost the Current Law’s Support