Saturday, January 25, 2014

Oh! Big Surprise

Top wage earners get biggest benefit from Gov. Scott Walker's tax cuts
"People shouldn't be misled to think there's much in it for the bottom two-fifths of Wisconsin," Peacock said of Walker's latest plan. 
Reschovsky said the proposed property tax cut would be of some help overall to renters, since it would help to hold down rent increases. But it would also help state companies with Wisconsin parcels and well-to-do families with vacation homes, not just elderly homeowners struggling to pay their annual tax bills.
Top 5% of Wisconsin Residents Get 18% of Tax Cuts Proposed by the Governor
We’re primarily concerned that Governor Walker’s plan ignores holes in the current budget, and creates a deeper hole in the next one – boosting the structural deficit in 2013-15 to $825 million.

That said, many people have asked us about the distribution of the proposed tax cuts, and we asked the Institute for Taxation and Economic Policy (ITEP) to crunch the numbers for us. The ITEP analysis — which focused just on the two major changes in the Governor’s plan — found that the top 5% of Wisconsinites, who made $161,000 or more in 2013, will get 18% of the tax cuts. By contrast, the bottom 40% get just 15% of the benefit.

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