The Different Federal Tax Proposals are not all that Different. Here’s What They Have in Common.

Monday, November 27, 2017 at 8:03 AM by

Republican leaders in the U.S. House of Representatives and in the Senate have put forth their own versions of the changes they would like to see made to federal income taxes. While there are different provisions included in the two plans, they are more alike than different. Here are five ways that the House and Senate tax plans are fundamentally similar.

1. A sizeable number of taxpayers with low and moderate incomes would be paying higher taxes under both bills. Under the newest Senate plan, more than a third – 34% — of Wisconsin taxpayers in the bottom three-fifths of the income spectrum would have a tax increase by the time all the provisions are fully phased in. In contrast, only 1% of the Wisconsin taxpayers in the top 1% by income would experience a tax increase. That group has an average annual income of $2.5 million.

In the House tax plan, 10% of Wisconsin taxpayers with low and middle incomes would have a tax hike, compared to 8% of taxpayers in the top 1% by income. Read more

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
Categories: Blog, corporate tax, FEDERAL BUDGET & TAXES, federal issues, income taxes, taxes | Comments Off on Revised Senate Plan Raises Taxes for Many Wisconsinites

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

Categories: Blog, FEDERAL BUDGET & TAXES, federal issues, refundable tax credits, taxes | Comments Off on House Bill’s Increase in Child Tax Credit Excludes Many Children in Working Families

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
Categories: Blog, estate tax, FEDERAL BUDGET & TAXES, federal issues, taxes | Comments Off on Republican Tax Plan Remains a Huge Windfall for the Wealthy

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

Budget Bill Boosts Property Taxes for Thousands of Low-income Households

Thursday, September 14, 2017 at 2:36 PM by
Despite the claims of state lawmakers that the biennial budget bill cuts property taxes, the actions of those policymakers will increase property taxes for thousands of low-income Wisconsin households. The budget bill does that by significantly reducing funding for the Homestead Tax Credit, which was designed to provide targeted property tax relief to low-income homeowners and renters. A new Wisconsin Budget Project summary of tax changes in the budget bill describes some of the major items, which include more than $400 million of tax cuts. But the bill cuts funding and eligibility for the Homestead Credit, and the Joint Finance Committee (JFC) rejected the Governor’s proposal to increase the state’s Earned Income Tax Credit.
Categories: 2017-19 biennial budget, Blog, ECONOMIC SECURITY, Homestead credit, property tax | Comments Off on Budget Bill Boosts Property Taxes for Thousands of Low-income Households

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

The Significant Risk of Never Breaking Even on Foxconn Subsidies

Wednesday, August 16, 2017 at 5:35 PM by

When the Legislative Fiscal Bureau wrote last week that it would take until at least 2043 for Wisconsin to break even on the Foxconn subsidies, they were summarizing a Department of Administration analysis that used the “best case” assumptions. Using the same methodology and most of the same assumptions, a new Wisconsin Budget Project analysis calculates that other scenarios within the range described by Foxconn could mean that the cost of the state subsidies would not be recovered until 2050 or 2058.

Of course, the DOA analysis and our alternative scenarios all raise the question of whether we can ever expect to break even on the state’s investment and local costs. As many people have pointed out, tech companies aren’t the most stable employers, and Foxconn’s own record illustrates that point. With that in mind, our new analysis calculates how much Wisconsin would be in the hole if Foxconn pulled out of Wisconsin 25 years from now or, alternatively, if they pull out of Wisconsin in 2034 when the annual subsidy payments would end. Read more

Categories: Blog, economic development, jobs, JOBS & THE ECONOMY, tax expenditures | Comments Off on The Significant Risk of Never Breaking Even on Foxconn Subsidies

Foxconn Deal Keeps Looking Worse

Wednesday, August 9, 2017 at 4:56 PM by

The massive subsides for Foxconn proposed by the Governor keep looking worse as we learn more. The most recent sobering information came this week when the Legislative Fiscal Bureau (LFB) issued a new analysis of the proposed subsidies. The figures in that August 8th analysis reinforce why a number of commentators and editors for business publications, including the editors of Bloomberg, have been extremely critical of the proposal.

Here are some of the key points in the new LFB review of the Foxconn bill: Read more

Reviewing the Foxconn Costs and Risks (without the Rose-colored Glasses)

Wednesday, August 2, 2017 at 5:31 PM by

Different Assumptions about Foxconn Job Creation Yield Much Higher Estimates of the Cost of Jobs

The cost of the proposed new tax credits for the tentative deal with Foxconn could be far larger per job created than some people have suggested. Those costs will vary greatly depending on the ratio of spending for payroll versus the capital expenditures.

The more that Foxconn invests in its facilities and state-of-the-art automation, rather than payroll, the more the proposed deal will cost state taxpayers per job created. A new Wisconsin Budget Project report examines the potential tax credit costs based on four scenarios that make different assumptions about the number of new jobs, the duration of the project, and the amount of Foxconn spending for capital improvements. Read more