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

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

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

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

Revised Spending and Revenue Projections Improve Budget Outlook

Wednesday, January 25, 2017 at 6:38 PM by

Mediocre Revenue Projections Beat the Low Expectations

A modest upturn in the state revenue projections and a significant reduction in state spending estimates have created a much better outlook for the state budget.

Before elaborating on the latest numbers, which were released by the Legislative Fiscal Bureau (LFB) last week, I have to admit that the new state tax collection numbers are considerably better than I expected when I wrote a very cautionary blog post about the next state budget a week or so ago. This is one of two recent occasions (along with my prediction that the Packers would lose to Dallas) when I am very happy to have been wrong.

Although the new revenue forecasts are also significantly better than the Department of Revenue projected two months ago, they are nothing to brag about. In fact, the latest tax collection estimate for the current fiscal year is $281 million less than the estimate that the biennial budget bill was based on. Read more

Blueprint Lays Framework to Help all Communities in Wisconsin Thrive

Thursday, January 19, 2017 at 6:15 PM by
In order for Wisconsin remain an attractive place to live and work, the state needs to make investments in a skilled workforce, a strong public education system, and a healthy citizenry. A broad-based coalition has set out a plan for how we can invest to help Wisconsin communities thrive – and it starts by recouping millions of dollars lost to tax loopholes that benefit a small number of people.
Categories: 2017-19 biennial budget, Blog, capital gains, corporate tax, economic development, In Focus State Budget, taxes | Comments Off on Blueprint Lays Framework to Help all Communities in Wisconsin Thrive

Warning Signs for Next Week’s Budget Numbers

Tuesday, January 17, 2017 at 9:11 PM by

January 18th UPDATE:  Sometimes it feels good to be wrong — like when the Packers outperform my pessimistic predictions and when new state revenue forecasts are stronger than I anticipated. So I’m very happy that the revised revenue projections released this afternoon by the Legislative Fiscal Bureau (LFB) are considerably better than I expected when I wrote our Jan. 17th blog post.  (Read more here.)

The new LFB numbers indicate that a combination of lower-than-expected spending and higher-than-expected tax revenue will be enough to maintain a comfortable budget balance in the current fiscal year, and also enough to fund the amounts requested by state agencies in the next biennium. That’s a huge relief after the very slow revenue growth from July through November, which suggested that the next estimate of revenue collections was likely to be down, rather than up. This year’s revised revenue collections are still below the level forecasted a year ago, but are now expected to be considerably stronger in the next biennium than the Department of Administration estimated in November. Read more

State Tax Collections Fall Further Below Expectations

Tuesday, December 27, 2016 at 2:15 PM by

Very Slow Tax Growth Suggests Budget Difficulties Ahead

New tax collection numbers that were released late on December 23 do not bode well for the Wisconsin budget. The November tax figures released by the Department of Revenue (DOR) late last Friday – a week after negative job numbers – suggest significant challenges ahead for state budget writers.

I’m not sure whether DOR released the tax collection data just a couple of hours before the Christmas break in order to avoid public notice, but if that was their plan it worked very well. There doesn’t seem to have been any media coverage of the new numbers. Read more

Categories: 2015-17 biennial budget, 2017-19 biennial budget, Blog, corporate tax, STATE TAXES, taxes | Comments Off on State Tax Collections Fall Further Below Expectations