Wisconsin residents strongly favor raising taxes on the wealthy and large corporations to reduce income inequality, a new poll shows. But instead of raising taxes on these groups, Wisconsin lawmakers have taken steps to give significant tax breaks to taxpayers with high incomes and corporations.
Two-thirds (66%) of survey respondents support raising taxes on the rich and big businesses, according to the spring 2016 Wisconsin Survey conducted by the Strategic Research Institute at St. Norbert College. Another 28% of respondents did not support raising taxes, and seven percent weren’t sure.
The poll results show that Wisconsin residents are alarmed about growing levels of income inequality and the widening chasm between the highest earners and everyone else. Wisconsin residents are right to be concerned. The share of income in Wisconsin going to the top 1% has reached its highest level ever, exceeding even levels reached prior to the Great Depression, and has more than doubled over the last 40 years. Read more
An Increased EITC for Childless Adults Would Reduce Poverty and Enjoys Bipartisan Support
Income inequality has been on the minds of many voters during the presidential primaries. If you think it’s only a concern of Democrats, take a look at the results of the most recent “Wisconsin Survey” – a St. Norbert’s poll conducted for Wisconsin Public Radio and Wisconsin Public Television. The survey last week of 616 registered Wisconsin voters found that 66% favor “increasing taxes on wealthy Americans and large corporations in order to help reduce income inequality in the U.S.,” compared to only 28% who said they were opposed.
There are lots of different ways to adjust taxes (and labor policy) to reduce income inequality. Unfortunately, most of those – such as closing corporate tax loopholes and increasing the minimum wage – have little chance in Congress right now. But one promising policy option that does have a chance is to provide a significant increase in the Earned Income Tax Credit (EITC) for adults who don’t have dependent children. Read more
National attention has turned to Wisconsin because our presidential primary on April 5th is the only one in the next week. It’s also a significant primary because the percentage turnout is likely to be higher than in any other state since the New Hampshire primary.
For reporters and others who are trying to understand some of the demographic, economic and political context for the April 5th election, we’ve pulled together a variety of facts about Wisconsin and how it compares to other states. Here are a few highlights from that data: Read more
Happy Pi Day! Today’s date is 3-14, a close approximation of the pi value of 3.141592…
The best way to celebrate Pi Day is – news flash! – to eat some pie.
The second best way of observing Pi Day is to enjoy some delicious pie charts. Sure, pie charts don’t go nearly as well with ice cream as the real thing, but they’re still enjoyable.
Here are five pie charts that tell the story of poverty and economic hardship in Wisconsin, and how the share of the pie that goes to the middle class is shrinking.
Pie Chart #1: Highest earners capture nearly all of the income growth in Wisconsin
Wisconsin families and businesses can’t thrive when income growth is nearly non-existent for everyone except for those at the very top. The share of income in Wisconsin going to the top 1% is at its highest level ever, widening the chasm between the very highest earners and everyone else, and posing a hardship for Wisconsin’s families, communities, and businesses. Read more
Proposed Changes Will Hurt the Elderly, Blind and Disabled, while Corporate Fraud Goes Unpunished
The Wisconsin Senate moved a step closer last week to passing a bill that has been described as combatting fraud or abuse in the FoodShare program, but which will do little, if anything, in that regard. In contrast to the progress of that legislation, as each day passes it looks less likely that the Senate will approve a bipartisan bill (AB 669) that could accomplish a great deal to halt benefit fraud by businesses.
AB 669, which was approved by a voice vote in the Assembly, would make it a felony to fraudulently obtain an economic development benefit from the Wisconsin Economic Development Corporation (WEDC). It would also allow WEDC to bring a civil action to recover damages for fraudulently obtained benefits. Although the lead Assembly author of the bill is a Republican (Rep. Kerkman), and it enjoyed broad support in the Assembly, AB 669 hasn’t even been given a public hearing in the Senate. Read more
Only Six States Had a Larger Decline from 2002 to 2013
State and local governments have been neglecting to make investments in infrastructure according to a new analysis issued this week. The new study found that state and local spending on infrastructure, such as transportation, public buildings, and water systems, fell to a 30-year low in 2014, when measured relative to gross domestic product (see Figure 1). The drop-off since 2000 has been especially pronounced in Wisconsin. Read more
A New Review of Economic Patterns Shows Why Wisconsin’s Job Creation Strategies Haven’t been as Effective as Hoped
Cutting taxes and luring companies from other states won’t do much to boost job creation in Wisconsin, according to the findings of a new research report released this week that examines which businesses create jobs and where they create them.
Wisconsin state lawmakers, including Governor Walker, have emphasized the importance of creating new jobs in Wisconsin, and have argued that tax cuts are the path to achieving that goal. With that in mind, they have enacted nearly $5 billion in tax cuts over six years, including a tax cut that nearly wipes out any income tax liability for manufacturers, and a tax cut for multi-state corporations that makes it easier for them to shift income from one state to another.
According to the theory, lower taxes will spur business to create more jobs. But despite deep tax cuts in Wisconsin, the pace of job growth in the state continues to lag the national average. Read more
Good Jobs First (GJF) announced today that Wisconsin taxpayers can now access nine years of economic development subsidy data in the organization’s searchable Subsidy Tracker database. The enhanced and expanded database developed by GJF now includes information about nearly 2,200 state and local subsidies for businesses in Wisconsin, totaling more than $1.8 billion.
The updated database adds nearly 30,000 new entries across the U.S. from 160 state and local programs, and 138 federal ones. Access to the database is free and unrestricted at: goodjobsfirst.org/subsidy-tracker. Read more
A national survey of small business leaders reveals that they overwhelmingly believe that state economic development incentives favor big businesses, and they say small businesses interests in economic development are not well represented in their state capitols.
The survey of 41 leaders of small business organizations representing 24,000 member businesses in 25 states found they think that states are overspending on large individual deals and that state incentive programs are not effectively meeting the needs of small businesses seeking to grow. Almost three-fourths (72%) do not believe their state’s current incentive policies are effective in promoting economic growth.