WHY is Gov. Evers rejecting the Republican plan to cut taxes?!?!
THE STATE WOULD RISK LOSING FEDERAL FUNDS
The state has received a memo from the Dept. of Administration which warns the state could only cut taxes up to $113M this year and $319M next year; anything over that threshold would risk the federal government recouping Wisconsin's share of American Rescue Plan Act money.
WHAT ARE EXPERTS SAYING ABOUT REPUBLICANS TAX PLAN?
Non-partisan policy experts and finance scholars say the plan won’t help individual residents or spur economic growth in the state.
TAX CUT BENEFITS THE WEALTHY
If you're a person with a relatively high income who has no kids, this plan is more beneficial to you.
The rest of us and the Wisconsin economy? Not so much.
TAX CUT WON'T SPUR ECONOMIC GROWTH AS PROMISED
“The way that high-income people spend their money, they're more likely to spend their money outside of the state, they're more likely to save that money,” Steven Deller, a University of Wisconsin-Madison professor who specializes in public finance and economics said. “Low-income folks, if you give them a tax cut, they're much more likely to spend that money in the local economy and have a positive economic impact.”
“Tax cuts do not drive economic growth. Just from the simplest perspective, states that have the lowest taxes should be doing the best and they’re not. States that tend to be doing better economically tend to have higher taxes.”
CLAIMED BENEFIT ON RETIREMENT INCOME WILL PRIMARILY BENEFIT THE WEALTHY, NOT THE REST OF US
A segment of the Republican-proposed tax cut package would remove taxes on retirement income up to $100,000 for individuals and $150,000 for married couples above age 67.
Republicans boast that this piece of the legislation will keep elderly Wisconsinites from leaving the state.
Many of the retirement funds included in this income bracket are ALREADY tax deferred, according to Ross Milton, an economist at UW-Madison who specializes in state spending and tax structures. And most retirees don't have income that high.
So, again, Republicans tax plan primarily benefits the wealthy.