Institute on Taxation and Economic Policy (ITEP)

Wisconsin

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State Rundown 2/23: Temporary Surplus, Permanent Cuts

• By ITEP Staff

Several state legislatures are continuing to push ahead this year with significant tax cut packages that are regressive and would dramatically reduce revenues and leave states in a bad position should they experience another unexpected economic shock...

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State Rundown 2/16: Spending Priorities Emerge as the Votes Are Counted

• By ITEP Staff

State lawmakers have been busy working out deals and negotiating how best to use excess revenues, and as the votes are beginning to come in, spending priorities are becoming clearer...

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State Rundown 2/10: Dems Also Set Sights on Tax Cuts

• By ITEP Staff

While record state revenue surpluses have led to big pushes in red states to make unnecessary permanent income and corporate tax cuts, Democrats are also getting in on the tax-cut mania...

Wisconsin Budget Project: Tax Shift Would Hike Taxes for People with Low Incomes and Give a Big Tax Cut to the Top 1%

• By ITEP Staff

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 individual income tax, Wisconsin’s biggest source of revenue. The plan would result in the largest tax cuts going to white households, with households of color […]

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State Rundown 2/2: The First Tax Cut Domino Falls…

• By ITEP Staff

One-time payments have become a common theme around the country, as Idaho is one of roughly eleven states with plans to provide tax relief in a similar fashion...

Exposed: Bradley and Koch Cash Fuels Push to Eliminate Wisconsin Income Tax

January 10, 2022

In addition, “sales taxes inevitably take a larger share of income from low- and middle-income families than from rich families because sales taxes are levied at a flat rate and spending as a share of income falls as income rises,” according to the Institute on Taxation and Economic Policy. Read more

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The New Trend: Short-Sighted Tax Cuts for the Rich Will Not Grow State Economies

• By Neva Butkus

The same legislators who touted tax cuts for the rich as solution to our problems before the pandemic are also saying tax cuts for the rich are a solution during the pandemic. Tax cuts cannot be a solution to everything, especially at a time when the richest Americans are amassing more wealth than ever.

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Investing in a Joint Future: Harnessing State Tax Codes

• By Aidan Davis

Rather than resorting to tax cuts, which can eventually create revenue shortfalls, lawmakers should determine whether they have adequately invested in people and communities. There are better ways to leverage tax systems to help those who need it most.

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State Income Taxes and Racial Equity: Narrowing Racial Income and Wealth Gaps with State Personal Income Taxes

• By Carl Davis, Jessica Schieder, Marco Guzman

10 state personal income tax reforms that offer the most promising routes toward narrowing racial income and wealth gaps through the tax code.

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State Rundown 9/15: It’s a Little Too Quiet…

• By ITEP Staff

Though we can’t fault anyone for being distracted by the major stories of the day, we at ITEP remain committed to keeping you up to date on what’s happening in the tax world around you...

Wisconsin Budget Project: Wisconsin’s Billion-Dollar Tax Cut Leaves out a Huge Chunk of Households

• By Marco Guzman

Shutting 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 state and local taxes than people with much higher earnings. The lowest 20% of Wisconsin households by income, in which households earn less than $22,000 […]

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Sales Tax Holidays: An Ineffective Alternative to Real Sales Tax Reform

• By Dylan Grundman O'Neill

Policymakers tout sales tax holidays as a way for families to save money while shopping for “essential” goods. On the surface, this sounds good. However, a two- to three-day sales tax holiday for selected items does nothing to reduce taxes for low- and moderate-income taxpayers during the other 362 days of the year. Sales taxes are inherently regressive. In the long run, sales tax holidays leave a regressive tax system unchanged, and the benefits of…

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In Drive to Cut Taxes, States Blow an Opportunity to Invest in Underfunded Services

• By Marco Guzman

Many states find themselves in a peculiar fiscal situation right now: federal pandemic relief money has been dispersed to states and revenue projections have exceeded expectations set during the pandemic. Meanwhile, more and more workers are returning to jobs as vaccines roll out and typical economic activity resumes. Some states, however, have decided to squander their unexpected fiscal strength on tax cuts.

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State Rundown 6/30: Resolutions Are in Order for the New Fiscal Year

• By ITEP Staff

Today is the last day of the fiscal year in many states, and some lawmakers might want to take the opportunity to make some new fiscal year resolutions. Legislators in Arizona, New Hampshire, Ohio, North Carolina, and Wisconsin, for example, should really cut back on the trickle-down tax-cut Kool-Aid, which may make parties with rich donors more fun but tends to be both harmful and habit-forming...

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State Rundown 6/24: Late June State Fiscal Debates Unusually Active

• By ITEP Staff

Delayed legislative sessions and protracted federal aid debates have made for a busier June than normal for state fiscal debates. Arizona, New Hampshire, and North Carolina legislators, for example, are still pushing for expensive and regressive tax cuts in their states while they remain in session...

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State Rundown 5/13: States Get Federal Aid and Guidance as Many Sessions Wind Down

• By ITEP Staff

We had our noses buried in new American Rescue Plan guidance...when we heard the refreshing news that Missouri leaders are on the verge of modernizing their tax code, not only by becoming the final state to apply sales taxes to online purchases, but also by enacting an Earned Income Tax Credit (EITC)...Meanwhile, tax debates are also highly active in California, Colorado, Louisiana, Maine, and Nebraska. We also share some of our own reporting on recent…

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Attacks on Voting Rights, Secret Tax-Cut Negotiations in Arizona Reflect Broader Trend to Undermine Democracy

• By Carl Davis, ITEP Staff, Jenice R. Robinson

The onslaught of news about multiple states introducing or passing legislation to make it harder to vote is a clear signal that our democracy is in crisis. Decades of policymaking and judicial rulings have created a system in which the voices of the wealthy and powerful have more weight, and some lawmakers are determined to further rig the system and keep it that way.

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State Rundown 4/21: Spring Has Sprung, or Has It?

• By ITEP Staff

Just as a recent cold snap reminded us that spring has not fully sprung yet, this week’s news has been full of reminders that state fiscal debates aren’t quite finished either...

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State Rundown 4/14: More Progressive Wins in the Headlines this Week, but Mind the Fine Print

• By ITEP Staff

Two significant victories headlined state tax debates in the past week, as New Mexico leaders improved existing targeted tax credits to give bigger boosts and reach more families in need, and West Virginia lawmakers unanimously shut down a destructive effort to eliminate the state’s progressive income tax. These developments follow last week’s major wins for progressive taxation and targeted assistance in New York, and more good news is likely soon as Washington legislators continue to…

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Taxes and Racial Equity: An Overview of State and Local Policy Impacts

• By ITEP Staff

Historic and current injustices, both in public policy and in broader society, have resulted in vast disparities in income and wealth across race and ethnicity. Employment discrimination has denied good job opportunities to people of color. An uneven system of public education funding advantages wealthier white people and produces unequal educational outcomes. Racist policies such as redlining and discrimination in lending practices have denied countless Black families the opportunity to become homeowners or business owners,…

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Comparing Flat-Rate Income Tax Options for Alaska

• By Carl Davis

Alaska lawmakers are facing an unprecedented fiscal crisis. The state is more dependent than any other on oil tax and royalty revenues but declines in oil prices and production levels have sapped much of the vitality of these revenue sources. One way of diversifying the state’s revenue stream and narrowing the yawning gap between state revenues and expenses would be to reinstitute a statewide personal income tax. Alaska previously levied such a tax until 1980.…

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State Rundown 2/11: Legalizing and Taxing Cannabis Becoming Increasingly Mainstream

• By ITEP Staff

This week, the governors of New Hampshire and West Virginia proposed to eliminate their states’ most progressive revenue sources and shift taxes even more heavily onto the middle- and low-income families who already pay the highest rates in both states. It was also a big week for proponents of legalizing recreational cannabis, as that movement made progress in Hawaii, Virginia, and Wisconsin.

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State Rundown 1/14: Bad Tax Cut Ideas Prove to Be Endemic

• By ITEP Staff

As states kick off their 2021 legislative sessions, it’s clear that many governors and lawmakers are attempting to “take a mulligan” on the last year and recycle tax-slashing ideas that were already bad in 2020 and are even worse now as states try to recover from the Covid-19 pandemic and accompanying downturn...On a brighter note, Illinois leaders showed they did learn from the events of 2020, passing a major criminal justice reform bill and payday…

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State Rundown 11/24: Lawmakers and Families Thankful to Be Nearing End to 2020

• By ITEP Staff

Just as people will search their hearts to give thanks this week for the small and large things that got them through a difficult year, state lawmakers are also doing their best to count their blessings while keeping fingers crossed for badly needed federal relief to give them something to be truly grateful for.

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State Rundown 10/21: States Preparing Ingredients for 2021 Fiscal Debates

• By ITEP Staff

State lawmakers around the nation are already looking well past the upcoming election to the legislative debates they’ll be cooking up in 2021. In Iowa and Nebraska, anti-tax groups are thawing out regressive tax shift ideas they had put on ice earlier in the pandemic. In Delaware, a lawsuit and recent settlement have put educational and property tax inequities on the menu for the upcoming session. Meanwhile New Jersey and New York are both looking…