Posted in: Wisconsin
‘Much of tax savings from Scott Walker’s proposed cut would go to top 20%’
The top 20% of Wisconsin households – those making more than $90,000 a year – would take home more than half of all of Gov. Scott Walker’s proposed income tax cut, an analysis has found.
The top 5% of tax filers – those with incomes above $162,000 – would pull in 20% of Walker’s more than $300 million tax cut.
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Walker has touted his proposal as a “middle-class tax cut” and pointed out that he only lowered income tax rates for the bottom three income brackets.
But an analysis by the Council on Children and Families and the Institute on Taxation and Economic Policy shows a more complicated picture. Jon Peacock, the council’s research director, noted that upper-income earners tend to gain much of the benefits from income tax cuts because they pay the most in taxes.
“The fact of the matter is when you cut rates for people up to $220,000, a lot of the benefit goes to people at the higher levels. That’s what people don’t get,” Peacock said.
The Republican governor’s budget bill would cut income taxes by $343 million over two years, or 2.2% overall, if lawmakers approve the proposal as written. The cut would begin for the current 2013 year and show up when taxpayers file their returns next spring.
The governor has said his budget would mean a $106 per year decrease in the income taxes of a family with two working adults, two children, income of $80,600 a year and current tax liability of $3,510. But the size of the cut in dollars would be much smaller at lower income levels and larger at the higher levels.
Read the Milwaukee Journal Sentinel‘s entire story.
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