Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

lutefisk

(3,974 posts)
Wed May 3, 2017, 11:39 AM May 2017

WI Republicans propose 4% flat tax to income and adding sales tax to gas

It's a Republican and Scott Walker tax increase. Period.

In convoluted proposal, Republicans are proposing:
-creating a 4 percent flat income tax
-reduce the current 30.9 cents per gallon gas tax by 4 to 7 cents
-reduce the minimum markup on gasoline
-apply the state sales tax to gasoline

The Republican pitch is that all reductions will be passed on to the consumer (not likely) and is based on retail gas prices at current levels ($2.26/gallon). As gas prices rise the sales tax will impact consumers much more than the current per/gallon "tax".

It's all a scam to sneak in a flat income tax and pretend they aren't raising gas taxes (to satisfy King Walker).

Brandon Scholz, executive director of the Wisconsin Grocers Association, panned the proposal, saying the minimum markup law doesn’t increase prices as much as opponents say it does. The result will be retailers passing on the cost of the sales tax increase to consumers, he said.

“This is a tax increase. This is not a tax decrease,” Scholz said. “It’s kind of a smoke-and-mirrors gig.”

Sen. Jon Erpenbach, D-Middleton, a member of the Joint Finance Committee, said he sees nothing in the proposal that he likes. “They’re taking the road crisis that we have to justify a policy of a flat tax,” Erpenbach said. “It’s not going to work.” ...

Todd Berry, president of the Wisconsin Taxpayers Alliance, said the proposal is a commentary on how far Assembly Republicans have to go to persuade Walker to support increased revenue for roads, especially when he previously said he would support a gas tax increase if there was an offsetting tax cut.

“It is truly amazing and amusing the number of hoops they have to jump through to effectively raise the gas tax and index it,” Berry said. “You can’t fault them for the creativity or the cleverness of it.”

LINK to Wisconsin State Journal report
2 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
WI Republicans propose 4% flat tax to income and adding sales tax to gas (Original Post) lutefisk May 2017 OP
A flat tax will hurt low-income residents dragonlady May 2017 #1
So the pump will say one price but u will pay more??? dembotoz May 2017 #2

dragonlady

(3,577 posts)
1. A flat tax will hurt low-income residents
Thu May 4, 2017, 12:22 AM
May 2017

Unless there is some kind of exemption in this bill, people who now don't have to file because of their low amount of income would have to pay 4% of it in a new tax. I'm sure 4% means a lot more to people at the low end than those at the high end.

dembotoz

(16,740 posts)
2. So the pump will say one price but u will pay more???
Sat May 6, 2017, 07:41 AM
May 2017

That should be fun
Will make the prepay pumps more exciting

Latest Discussions»Region Forums»Wisconsin»WI Republicans propose 4%...