Theme song for this post – and Scott Walker:
UPDATE 12:44PM (Around 8 hours after news of the previous plan came out):
It seems Walker was just yankin’ Wisconsin’s chain while bolstering his Tea Party brethren on the national front.
From Jason Stein at MJS: “Scott Walker isn’t getting on the let’s-get-rid-of-income-tax train yet, not in the budget bill he’s introducing on Feb. 20.
But Walker said that in the following 2015-’17 budget he’ll at least look at what governors in Kansas and Louisiana are doing to replace their states’ income tax with a higher sales tax”
Screen print below:
This morning’s post:
Welcome to today’s edition of Let’s Poke at Sanity With a Sharp Stick and See What Happens, performed by The Walker Administration and underwritten by Jane Q. Wisconsin-Taxpayer.
Take a quick look at the chart above on Wisconsin’s 2007 taxes. This comes from the Institution on Taxation and Economic Policy.
Then consider that the Walker administration in the guise of DOA chief Mike Huebsch is floating a proposal to take Wisconsin’s 5% sales tax to around 13% and eliminate the income tax.
“The state sales tax rate is currently 5 percent; Huebsch says adding 8 cents would allow the state to eliminate income taxes. ”If we were just going to eliminate the income tax and raise our sales tax to match that, we would have to raise it somewhere in the neighborhood of about 8 cents. We would have to go to about 13, maybe 13 1/2 cents in our sales tax.” Individual income taxes equaled $7.0 billion in 2012 in Wisconsin.” – Wednesday, February 06, 2013 4:32 a.m. CST
It’s pretty obvious isn’t it? Huebsch’s suggested plan wipes out the blue columns in that graph and you can see that the people who earn higher incomes stand to benefit the most. Huebsch’s plan rachets up the red sales tax columns and clearly as it stands, the less you earn, the more red you disproportionately pay in sales tax in Wisconsin. The poor will pay for the gains of the wealthy in this plan. It’s regressive.
Safe to assume this could hurt small businesses, as well.
My dad used to say “The rich get richer and the poor get poorer”. This plan is my dad’s statement on meth – probably one of the few burgeoning products in this state’s economy by now with the direction these rejects are taking us.
Let’s hope there are a few economists still tucked in the Capitol building who can talk some sense into Huebsch and Walker. Lord knows they’re not listening to me.
Footnote: Let’s just remember for a moment that Mike Huebsch, the head of Wisconsin Dept. of Administration (DOA), is the individual entrusted with standing behind a December 2011 to present crackdown on assembly and speech in Wisconsin’s Capitol.