Posted on 10/06/2022 12:46:00 PM PDT by Diana in Wisconsin
Tim Michels isn’t saying what a flat tax would look like if he becomes governor, but he says he’s open to the idea.
Michels, who is running for governor as the Republican candidate, on Wednesday said he’s willing to take a look at changing Wisconsin’s personal income tax.
"I'm going to sit down with all the smart tax people, we're going to figure out how low we can get the income tax," Michels said at a stop at a tavern in Baraboo. "Right now, it looks like we could get it somewhere just below 5%.”
Wisconsin’s personal income tax rates range between 3.54% and 7.65%.
Republican lawmakers have talked about lowering those rates, or eliminating the personal income tax altogether, to make Wisconsin more competitive in the Midwest.
Illinois already has a flat income tax of 4.95%. Michigan’s flat income tax is at 4.25%. Minnesota has a tax bracket system similar to Wisconsin. Minnesota’s income taxes start at 5.35% and go up to 9.85%. Iowa currently has a progressive tax as well, with tax rates starting at 0.33% and rising to 8.53%. But the governor there just signed a law to switch Iowa to a flat 3.9% tax in 2026.
Michels didn’t say just how low he’d like to see Wisconsin’s income tax, but said lower taxes will help more people keep more of their own money.
“If you had a flat tax at that number, the tax level would actually come up for those on the lowest income bracket. I do not want to raise the taxes on anyone,” Michels added.
Wisconsin Democrats on Wednesday said changing Wisconsin’s tax rates would allow Michels to keep a lot more of his money as well.
“Tim Michels has long made clear he is running for governor to enrich himself – and now the icing on the cake is a radical tax policy that doesn’t help all Wisconsinites, just the richest like himself,” the Democrats’ Hannah Menchhoff said in a statement.
But Michels flat tax pitch is also earning him some praise.
Badger Institute President Mike Nichols said Michels is right to see tax reform as a magnet for people looking to move to Wisconsin.
“Across the nation, people are fleeing high-tax states for those with lower taxes. Fourteen states already have or are moving toward a flat tax, including Illinois and Michigan and Indiana and Iowa. This is exactly what’s needed here in Wisconsin,” Nichols said.
I don’t think a flat tax is a winning idea.
“Illinois already has a flat income tax of 4.95%”
And a sales tax of 7.75-over 10% depending on where you live and some of the highest property taxes in the nation and a gas tax of 56 cents a gallon plus local gas taxes depending on where you live.
L
I remember that in the 1960’s Wisconsin had the most generous AFDC (Aid to Families with Dependent Children) programs.
The local paper reported people moving from Minnesota and Illinois to receive the more generous benefits.
Yep. But that ended under Governor Tommy Thompson, (87-2001)and Slick Clinton used Tommy’s reforms and applied them nationwide.
Of course, that lasted all of 10 minutes. *Rolleyes*
Poverty is Big Socialist Democrat Business, Baby! ;)
He’s proposing a flat tax just on income taxes.
For me the only truly fair flat tax (on the philosphical position that EVERYONE pays, and pays the same flat tax), must include the following points:
1. It’s universal - it applies everyone.
2. No deductions, no exemptions, no exlcusions, not “tax credits - ALL income regardless of source or manner of earning it is taxed the same and not left out in any way.
3. With one possible caveat that politicians can consider, and will likely help get the measure passed, and that one be one single income floor below which income is not taxed.
4. Whether a bank paying interest, or a bond paying interest, or a stock paying dividends, or an employer paying wages/salery/earnings of any manner, or a business paying a consultant, or an individual paying somone for services, ect., ect., ect., the flat tax would be deducted from the payment and sent in with a 1099.
5. There would be no “refunds” because all the gimmicks (deductions, exemptions, exclusions and credits will be eliminated. There will be nothing to to before an “April 15th deadline. All the taxes due will have been taken - nothing to report, nothing to get back.
6. If all of the above were implemented most people would see a lower level of taxes paid, because with all gimmicks eliminated the flat tax will be as totally broad as possible (hitting EVERYONE and hittting EVERYONE the same) and likely lower than any tax rate now being applied.
Yes I remember the reforms of governor Tommy Thompson.
Your comment: “Poverty is Big Socialist Democrat Business, Baby! ;)” is spot on.
Another benefit of a flat tax is all the savings by getting rid of hundreds of thousands of IRS employees! (I crack myself up.)
Join Texas, Florida, Washington et al with no state income tax.
And they are still always broke.
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