Thursday, December 19, 2013

Ouch, Tax Cuts for the Rich behind Walker’s repeal of state income tax.

It’s highly unlikely the sales tax would ever be 13.5%, but that's what it would take to make up for the elimination of the income tax.

To show you how just about any increase in the sales tax would negatively affect low and middle income families, here’s a chart from the Wisconsin Budget Project. Nothing subtle about Walker's support for the upper 10%,  his true constituents:
The following table shows the average tax change by income group if the individual and corporate income taxes were repealed, and the sales tax rate raised to 13.5% to make up for the revenue loss. The analysis assumes that refundable tax credits aimed at helping low-income individuals would not be eliminated; if those credits were eliminated, then the tax increases for those with lower incomes would be even larger than shown in the table below. The analysis was conducted by the Institute for Taxation and Economic Policy.

Jon Peacock, director of the Wisconsin Budget Project (said), “We won’t create prosperity and jobs for Wisconsin by raising taxes on most families just to pay for tax cuts for the rich.”
Uppity Wisconsin estimated the loss of about 10,000 jobs along our states borders due to a sales tax hike.

Keep this in mind:
Like most states with no income tax, Tennessee does have a relatively high sales tax rate of 7% on general merchandise and 5.5% on food. In addition, individual counties levy their own sales tax above and beyond the state sales tax. In Shelby County, sales tax is 9.25% on general merchandise and 7.75% on food.

1 comment:

  1. Walker has never intended to foster prosperity for Wisconinites who voted via ballot.