ITEP Work in Action February 7, 2022
Wisconsin Budget Project: Tax Shift Would Hike Taxes for People with Low Incomes and Give a Big Tax Cut to the Top 1%Last month, an influential group of lobbyists released a proposal to raise Wisconsin’s sales tax to 8%, making it the highest state sales tax in the country, and eliminate the state…
ITEP Work in Action September 9, 2021
Wisconsin Budget Project: Wisconsin’s Billion-Dollar Tax Cut Leaves out a Huge Chunk of HouseholdsShutting low-income families out of the tax cut will further skew Wisconsin’s tax system, which already requires people with low incomes to pay a higher share of their incomes in…
media mention February 14, 2019
Urban Milwaukee: Republicans Discover the Middle Class
An analysis of all the tax breaks in Wisconsin from 2011 through 2016 by the Institute on Taxation and Economic Policy found the average tax reduction was $10,015 for the top 1 percent of taxpayers, and $1,806 for the next 4 percent of taxpayers versus $379 for the middle 20 percent of taxpayers and just $175 for the bottom 20 percent of taxpayers.
ITEP Work in Action November 21, 2018
Wisconsin Budget Project: Wisconsin’s Tax System Requires the Least from Those Who Have the Most
Wisconsin residents with the lowest incomes pay about a third more of their income in state and local taxes than the wealthiest residents, according to new figures from the Institute on Taxation and Economic Policy. The poorest 20% of Wisconsin residents—a group with an average income of $14,700—pays 10.1 cents out of every $1 of their income in state and local taxes on average. In comparison, the richest residents of Wisconsin, who have an average income of $1.2 million, pay just 7.7 cents out of every $1 in income in state and local taxes.
October 17, 2018
Wisconsin: Who Pays? 6th EditionWISCONSIN Read as PDF WISCONSIN STATE AND LOCAL TAXES Taxes as Share of Family Income Top 20% Income Group Lowest 20% Second 20% Middle 20% Fourth 20% Next 15% Next…
September 26, 2018
Tax Cuts 2.0 – WisconsinThe $2 trillion 2017 Tax Cuts and Jobs Act (TCJA) includes several provisions set to expire at the end of 2025. Now, GOP leaders have introduced a bill informally called…
blog July 10, 2018
Building on Momentum from Recent Years, 2018 Delivers Strengthened Tax Credits for Workers and Families
Despite some challenging tax policy debates, a number of which hinged on states’ responses to federal conformity, 2018 brought some positive developments for workers and their families. This post updates a mid-session trends piece on this very subject. Here’s what we have been following:
ITEP Work in Action December 20, 2017
Wisconsin Budget Project: Giving Young Immigrants a Pathway to Citizenship Would Boost Wisconsin’s Farm EconomyAccording 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:…
ITEP Work in Action December 20, 2017
Wisconsin Budget Project: Dream Act Would Boost Wisconsin Economy and Tax Revenues: Revoking DACA Hurts BothThere 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…
December 16, 2017
How the Final GOP-Trump Tax Bill Would Affect Wisconsin Residents’ Federal TaxesThe 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-…
December 6, 2017
How the House and Senate Tax Bills Would Affect Wisconsin Residents’ Federal Taxes
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.
November 14, 2017
How the Revised Senate Tax Bill Would Affect Wisconsin Residents’ Federal Taxes
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.
November 6, 2017
How the House Tax Proposal Would Affect Wisconsin Residents’ Federal Taxes
The Tax Cuts and Jobs Act, which was introduced on November 2 in the House of Representatives, includes some provisions that raise taxes and some that cut taxes, so the net effect for any particular family’s federal tax bill depends on their situation. Some of the provisions that benefit the middle class — like lower tax rates, an increased standard deduction, and a $300 tax credit for each adult in a household — are designed to expire or become less generous over time. Some of the provisions that benefit the wealthy, such as the reduction and eventual repeal of the estate tax, become more generous over time. The result is that by 2027, the benefits of the House bill become increasingly generous for the richest one percent compared to other income groups.
ITEP Work in Action October 17, 2017
Wisconsin Budget Project: What the Trump Tax Plan Means for Wisconsin Taxpayers, in Six Charts
The tax plan being advanced by President Trump and Republican members of Congress would mostly benefit the extremely rich, despite initial claims by proponents that it would be targeted at members of the middle class…Using data from an analysis by the Institute on Taxation and Economic Policy, we have prepared six charts that show how the Trump-GOP tax framework would affect Wisconsin taxpayers:
October 4, 2017
GOP-Trump Tax Framework Would Provide Richest One Percent in Wisconsin with 61.2 Percent of the State’s Tax Cuts
The “tax reform framework” released by the Trump administration and congressional Republican leaders on September 27 would not benefit everyone in Wisconsin equally. The richest one percent of Wisconsin residents would receive 61.2 percent of the tax cuts within the state under the framework in 2018. These households are projected to have an income of at least $525,900 next year. The framework would provide them an average tax cut of $75,550 in 2018, which would increase their income by an average of 4.2 percent.
blog September 28, 2017
State Rundown 9/28: Wisconsin Budget Finalized, Oklahoma Special Session Underway
This week, Wisconsin’s leaders finalized the state budget at last, while those in Oklahoma began a special session to close their state’s revenue shortfall. Soda tax fights made news in Illinois and Pennsylvania. And New Jersey offered Amazon $5 billion in tax subsidies.
blog September 13, 2017
State Rundown 9/13: The Year of Unprecedented State Budget Impasses Continues
This week, Pennsylvania lawmakers risk defaulting on payments due to their extremely overdue budget and Illinois legislators will borrow billions to start paying their backlog of unpaid bills. Governing delves into why there were more such budget impasses this year than in any year in recent memory. And Oklahoma got closure from its Supreme Court on whether closing special tax exemptions counts as “raising taxes” (it doesn’t).
blog September 7, 2017
State Rundown 9/6: Most Statehouses Quiet, Many Pondering Harvey’s Impacts
It’s been a quiet week for tax policy in most states, though lawmakers are still making noise in Pennsylvania, where a budget agreement is still needed, and in Wisconsin, where legislators are searching for the will to raise revenue for the state’s ailing transportation infrastructure. In our “What We’re Reading” section you’ll find interesting reading on the fiscal fallout of Hurricane Harvey, as well as an in-depth series on how states’ disaster response needs are likely to continue to increase.
blog August 31, 2017
State Rundown 8/31: Modernizing Taxes is Sometimes a Sprint, Sometimes a Marathon
Tax and budget debates are progressing at different paces in different parts of the country this week. In Connecticut and Wisconsin, lawmakers hope to finally settle their budget and tax differences soon. In South Dakota, a court case that could finally enable states to enforce their sales taxes on online retailers inches slowly closer to the U.S. Supreme Court.
August 17, 2017
In Wisconsin 46.0 Percent of Trump’s Proposed Tax Cuts Go to People Making More than $1 Million
A tiny fraction of the Wisconsin population (0.5 percent) earns more than $1 million annually. But this elite group would receive 46.0 percent of the tax cuts that go to Wisconsin residents under the tax proposals from the Trump administration. A much larger group, 42.7 percent of the state, earns less than $45,000, but would receive just 5.6 percent of the tax cuts.
blog August 9, 2017
State Rundown 8/9: And Then There Were ThreeThis week, Rhode Island lawmakers agreed on a budget, leaving only three states – Connecticut, Pennsylvania, and Wisconsin – without complete budgets. Texas, however, remains in special session and West…
July 20, 2017
Trump Tax Proposals Would Provide Richest One Percent in Wisconsin with 50.6 Percent of the State’s Tax Cuts
Earlier this year, the Trump administration released some broadly outlined proposals to overhaul the federal tax code. Households in Wisconsin would not benefit equally from these proposals. The richest one percent of the state’s taxpayers are projected to make an average income of $1,786,500 in 2018.
blog July 19, 2017
State Rundown 7/19: Handful of States Still Have Their Hands Full with Tax and Budget Debates
Tax and budget debates drag on in several states this week, as lawmakers continue to work in Alaska, Connecticut, Rhode Island, Pennsylvania, Texas, and Wisconsin. And a showdown is brewing in Kentucky between a regressive tax shift effort and a progressive tax reform plan. Be sure to also check out our “What We’re Reading” section for a historical perspective on federal tax reform, a podcast on lessons learned from Kansas and California, and more!
blog June 28, 2017
State Rundown 6/28: States Scramble to Finish Budgets Before July Deadlines
This week, several states attempt to wrap up their budget debates before new fiscal years (and holiday vacations) begin in July. Lawmakers reached at least short-term agreement on budgets in Alaska, New Hampshire, Rhode Island, and Vermont, but such resolution remains elusive in Connecticut, Delaware, Illinois, Maine, Pennsylvania, Washington, and Wisconsin.
ITEP Work in Action June 27, 2017
Wisconsin Budget Project: Missing Out: Recent Tax Cuts Slanted in Favor of those with Highest IncomesSince 2011, Wisconsin state lawmakers have made it a high priority to cut taxes, particularly personal income and property taxes. The tax cuts they have passed have disproportionately gone to…