Wisconsin Budget Project: Governor Walker’s Tax Shift Plan Would Raise Taxes for Most
ITEP Work in Action
Governor Walker has said he is interested in eliminating the state’s income tax and raising the sales tax to make up for lost revenue, a move that would result in a tax increase for all but the wealthiest taxpayers.
To replace the revenue lost by the income tax, the state sales tax rate would need to be raised to 13.5%, giving Wisconsin the highest state sales tax rate in the nation.
The tax shift endorsed by Governor Walker would mean the bottom 80% of taxpayers would be paying more in taxes – some of them, a lot more. For example, a taxpayer in the lowest 20% by income would pay nearly $750 more in taxes, on average. Taxpayers in the top 1% — a group with an average income of $1.1 million – would receive a tax cut averaging nearly $44,000.