Institute on Taxation and Economic Policy (ITEP)

Wisconsin

Urban Milwaukee: What’s Wrong with Illinois?

May 30, 2018

Although Illinois is widely viewed as a blue state because of its recent record of supporting Democratic presidential candidates, from a “who pays” angle it looks much more like a red state, collecting a much higher proportion of taxes from low earners than high earners. The next chart, based on data developed by the Institute […]

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State Rundown 5/23: Special Sessions Abound Amid Budget Vetoes, Stalemates, Federal Tax Bill

• By ITEP Staff

This week the governors of Louisiana and Minnesota both vetoed budget bills, leading to another special session in Louisiana and unanswered questions in Minnesota, and Missouri legislators managed to push through a tax shift bill just before adjourning their regular session and heading right into a special session to impeach their governor. Wisconsin and Wyoming localities are both looking at ways to raise revenues as state funding drops. And our What We're Reading section contains…

Washington Post: Wisconsin Gov. Scott Walker is sending 671,000 families an election-year check

May 3, 2018

Tax experts said the only similar recent tax break that came to mind was in 2014, when New York Gov. Andrew M. Cuomo (D) pushed through a more targeted, three-year tax package aimed at middle-class families ahead of his reelection bid, according to Meg Wiehe, a tax expert at the Institute on Taxation and Economic […]

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State Rundown 12/31/9999: IRS Glitch and Legislative Impasses Extend Tax Season

• By ITEP Staff

This week the IRS website asked some would-be tax filers to return after December 31, 9999. State legislators don't have quite that much time, but are struggling to wrap up their tax debates on schedule as well. Iowa legislators, for example, are ironically still debating tax cuts despite having run out of money to cover their daily expenses for the year. Nebraska's session wrapped up, but its tax debate continues in the form of a…

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State Rundown 4/5: Education Funding Issues Take Center Stage

• By ITEP Staff

This week, Kentucky legislators passed a bill shifting taxes onto low- and middle-income families, Oklahoma legislators reached a deal on education funding, and their counterparts in Kansas proffered multiple proposals for their education funding needs. Meanwhile, tax debates are coming down to the wire in Iowa, Missouri, and Nebraska, and responses to the federal tax-cut bill were settled on in Maryland, New York, and Wisconsin.

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Trends We’re Watching in 2018, Part 4: Tax Cuts & Tax Shifts

• By Lisa Christensen Gee

While a lot of tax activities in the states this year have focused on figuring out the impact of federal tax changes on states' bottom lines and residents, there also have been unrelated efforts to cut state taxes or shift from personal income taxes to more regressive sales taxes.

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Trends We’re Watching in 2018, Part 3: Improvements to Tax Credits for Workers and Families

• By Aidan Davis

This has been a big year for state action on tax credits that support low-and moderate-income workers and families. And this makes sense given the bad hand low- and middle-income families were dealt under the recent Trump-GOP tax law, which provides most of its benefits to high-income households and wealthy investors.   Many proposed changes are part of states’ broader reaction to the impact of the new federal law on state tax systems. Unfortunately, some…

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State Rundown 3/22: Some Spring State Tax Debates in Full Bloom, Others Just Now Surfacing

• By ITEP Staff

The onset of spring this week proved to be fertile ground for state fiscal policy debates. A teacher strike came to an end in West Virginia as another seems ready to begin in Oklahoma. Budgets were finalized in Florida, West Virginia, and Wyoming, are set to awaken from hibernation in Missouri and Virginia, and are being hotly debated in several other states. Meanwhile Idaho, Iowa, Maryland, and Minnesota continued to grapple with implications of the…

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Trends We’re Watching in 2018, Part 2: State Revenue Shortfalls and the Impact on Education and Other Services

• By Aidan Davis

Many states struggle with a need for revenue, yet their lawmakers show little will to raise taxes to fund public services. Revenue shortfalls can prove to be a moving target. Some states with expected shortfalls are now seeing rosier forecasts. But as estimates come in above or below projections, states continue to grapple with how and whether to raise the revenue necessary to adequately fund key programs. Here are a few trends that are leading to less than cushy…

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State Rundown 2/22: State Tax Debates Grind On

• By ITEP Staff

This week, major tax packages relating to the federal tax-cut bill made news in Georgia, Iowa, and Louisiana, as Minnesota and Oregon lawmakers also continue to work out how their states will be affected. New Mexico's legislative session has finished without significant tax changes, while Idaho and Illinois's sessions are beginning to heat up, and Vermont's school funding system is under the microscope.

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State Rundown 2/14: To Couple or Not to Couple?

• By ITEP Staff

This Valentine's week finds California, Georgia, Missouri, New York, Oregon, and other states flirting with the idea of coupling to various components of the federal tax-cut bill. Meanwhile, lawmakers seeking revenue solutions to budget shortfalls in Alaska, Oklahoma, and Wyoming saw their advances spurned, and anti-tax advocates in many states have been getting mixed responses to their tax-cut proposals. And be sure to check out our "what we're reading" section to see how states are…

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State Rundown 2/8: State Responses to Federal Bill Gaining Steam

• By ITEP Staff

Several states this week are looking at ways to revamp their tax codes in response to the federal tax cut bill, with Georgia, Idaho, Maryland, Nebraska, and Vermont all actively considering proposals. Meanwhile, Connecticut, Louisiana, and Pennsylvania are working on resolving their budget shortfalls. And transportation funding is getting needed attention in Mississippi, Utah, and Wisconsin.

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State Rundown 1/31: Low-Income Families’ Taxes Getting Some Much-Needed Attention

• By ITEP Staff

This week was promising for advocates of Earned Income Tax Credits (EITCs) and other tax breaks for workers and their families, which are making headway in Alabama, Maine, Massachusetts, Missouri, Utah, and Wisconsin. The week also saw the unveiling of a tax cut plan in Missouri, a budget-balancing tax increase package in Oklahoma, the end of an unproductive film tax credit in West Virginia, and a very busy week for tax policy in Utah.

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What the Tax Cuts and Jobs Act Means for States – A Guide to Impacts and Options

• By ITEP Staff

The recently enacted Tax Cuts and Jobs Act (TCJA) has major implications for budgets and taxes in every state, ranging from immediate to long-term, from automatic to optional, from straightforward to indirect, from certain to unknown, and from revenue positive to negative. And every state can expect reduced federal investments in shared public priorities like health care, education, public safety, and basic infrastructure, as well as a reduced federal commitment to reducing economic inequality and…

Select state coverage of ITEP’s analyses of Republican tax Plans

January 1, 2018

Burlington County Times: Will Phil Murphy raise NJ’s taxes (and 4 other political questions for .. Kaplan Herald: This chart exhibits how the GOP tax plan will hit your pockets Wiscnews: Tax cuts increase inequity Patch.com: MacArthur Touts Tax Reform; Will It Help NJ As Much As He Says? NJ.com: Long lines spring up as […]

Wisconsin Budget Project: Giving Young Immigrants a Pathway to Citizenship Would Boost Wisconsin’s Farm Economy

• By ITEP Staff

According to a new report from the Wisconsin Budget Project, passing the Dream Act and establishing a pathway to citizenship for immigrant youth would help Wisconsin farms and communities by: Expanding Wisconsin’s economy by up to $600 million a year by improving the access that immigrants have to educational and economic opportunity; Increasing state and […]

Wisconsin Budget Project: Dream Act Would Boost Wisconsin Economy and Tax Revenues: Revoking DACA Hurts Both

• By ITEP Staff

There are 10,000 young immigrants potentially eligible for DACA who call Wisconsin home. They currently contribute a total of $16 million to local and state taxes annually through sales and excise taxes, property taxes, and income tax. Read more here

How the Final GOP-Trump Tax Bill Would Affect Wisconsin Residents’ Federal Taxes

• By ITEP Staff

The final tax bill that Republicans in Congress are poised to approve would provide most of its benefits to high-income households and foreign investors while raising taxes on many low- and middle-income Americans. The bill would go into effect in 2018 but the provisions directly affecting families and individuals would all expire after 2025, with […]

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The Final Trump-GOP Tax Plan: National and 50-State Estimates for 2019 & 2027

• By ITEP Staff

The final Trump-GOP tax law provides most of its benefits to high-income households and foreign investors while raising taxes on many low- and middle-income Americans. The bill goes into effect in 2018 but the provisions directly affecting families and individuals all expire after 2025, with the exception of one provision that would raise their taxes. To get an idea of how the bill will affect Americans at different income levels in different years, this analysis…

Politifact: Paul Ryan’s partially accurate claim that House tax bill saves typical Wisconsin household $2,000

December 8, 2017

The $2,081 savings figure is correct, according to experts at four think tanks we contacted: Amir El-Sibaie, an analyst at the Tax Foundation; Chuck Marr, director of federal tax policy at the Center on Budget and Policy Priorities; and Urban-Brookings Tax Policy Center senior fellow Frank Sammartino; and Institute on Taxation and Economic Policy deputy […]

How the House and Senate Tax Bills Would Affect Wisconsin Residents’ Federal Taxes

• By ITEP Staff

The House passed its “Tax Cuts and Jobs Act” November 16th and the Senate passed its version December 2nd. Both bills would raise taxes on many low- and middle-income families in every state and provide the wealthiest Americans and foreign investors substantial tax cuts, while adding more than $1.4 trillion to the deficit over ten years. The graph below shows that both bills are skewed to the richest 1 percent of Wisconsin residents.

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National and 50-State Impacts of House and Senate Tax Bills in 2019 and 2027

• By ITEP Staff

The House passed its “Tax Cuts and Jobs Act” November 16th and the Senate passed its version December 2nd. Both bills would raise taxes on many low- and middle-income families in every state and provide the wealthiest Americans and foreign investors substantial tax cuts, while adding more than $1.4 trillion to the deficit over ten years. National and 50-State data available to download.

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Republican Senators Debate Size of “Pass-Through” Break, But Proposed Compromises Will Make No Difference to Anyone Who Is Not Well-Off

• By Steve Wamhoff

Senators Ron Johnson of Wisconsin and Steve Daines of Montana want the tax bill on the Senate floor to be amended to offer a more generous tax break for “pass-through” businesses. We have estimated how all the provisions in the tax bill would impact each income group under three possible scenarios. The only thing different in each scenario is the size of the deduction for pass-through income: 17.4 percent (the deduction in the bill as…

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Revised Senate Plan Would Raise Taxes on at Least 29% of Americans and Cause 19 States to Pay More Overall

• By ITEP Staff

The tax bill reported out of the Senate Finance Committee on Nov. 16 would raise taxes on at least 29 percent of Americans and cause the populations of 19 states to pay more in federal taxes in 2027 than they do today.

How the Revised Senate Tax Bill Would Affect Wisconsin Residents’ Federal Taxes

• By ITEP Staff

The Senate tax bill released last week would raise taxes on some families while bestowing immense benefits on wealthy Americans and foreign investors. In Wisconsin, 47 percent of the federal tax cuts would go to the richest 5 percent of residents, and 9 percent of households would face a tax increase, once the bill is fully implemented.