Independent analysis confirms GOP flat tax plan is massive tax giveaway to the wealthy at the expense of middle-class taxpayers
A new Republican flat tax plan would pay big dividends for Wisconsin’s most well off at the expense of the middle class, according to an independent analysis of the plan released today.
Madison—A new Republican flat tax plan would pay big dividends for Wisconsin’s most well off at the expense of the middle class, according to an independent analysis of the plan released today.
The analysis by the nonpartisan Institute of Taxation and Economic Policy (ITEP) shows that Wisconsinites making over $224,000, or the state’s top 5% of earners, would get an average tax cut of about $1,200, under the GOP plan. By comparison, taxpayers making under $60,000 would only receive an average tax cut of $34, according to ITEP.
The GOP tax plan flattens out the state’s middle three income tax brackets starting in 2015, so someone making $319,000 would be taxed at the same rate as someone making just over $14,500.
Rep. Jon Richards (D-Milwaukee), a member on the Joint Finance Committee and the Special Committee on Income Tax Reform, released the following statement in response to the ITEP report.
“Republicans built a one-time budget surplus by making historic, damaging cuts to Wisconsin’s public schools. That was bad enough. But to then suggest that we spend classroom dollars on a massive tax cut for the wealthy adds insult to injury.
“The numbers don’t lie. Wisconsin ranks 44th in the nation in job growth and dead last in short term job growth. And now we have data confirming that the new GOP flat tax plan is little more than a massive tax giveaway to the wealthy. Governor Walker’s tax plan was bad. The new Republican tax plan makes it worse.
“The majority party has held complete control of state government for almost 2 ½ years now. By any measure, their policies have been extreme, harmful and clearly are not working. As a result, Wisconsin is in the midst of an economic tailspin and the quality of our public schools is in jeopardy.
“It’s not too late to right the ship, though. Republicans just need to be willing to work together with Democrats to build a budget for Wisconsin’s middle class.”