Governor Walker’s Tax Shift Plan Would Increase Taxes on Most Wisconsinites

December 19, 2013

Governor Walker’s proposal to eliminate the state’s income tax and raise the sales tax to make up for lost revenue will mean higher taxes for the bottom four-fifths of state residents, while providing large tax cuts to the wealthiest Wisconsin taxpayers, according to a new analysis.

“Simply swapping out the income tax for the sales tax would mean a tax hike for the vast majority of Wisconsinites, without doing anything to boost our economy,” said Jon Peacock, director of the Wisconsin Budget Project.

To replace the revenue lost by the income tax, the state sales tax rate would need to be raised to 13.5%, which would be the highest in the nation. That means Wisconsin shoppers would see an extra 8.5% tacked onto their bill when they buy most products.

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