Thursday, March 27, 2014

Gov. Walker Wants To Eliminate Wisconsin's State Income Tax

Walker recently floated out the idea of eliminating Wisconsin's state income tax. he hasn't come up with a plan yet as he claims he wants input from 'the people'.

That's something we in Wisconsin haven't heard from him before, but he is running for President, so he has to at minimum appear to care what voters think.

He says he has no definite scheme in mind, but we know that can't be the case. This guy's middle name is subterfuge. That's mainly because he knows his policies are unpopular and can't just come out say what he wants to do. Geez, if he did that, he probably wouldn't get elected.

Let's look at Wisconsin's current state income tax, compare it to other state's that have no state income tax and see if it can't be discerned where Walker is really going with this.

Currently, there are seven states with no state income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming.

Right off the bat, you can see that the line representing Wisconsin doesn't follow the contour for the states with no income tax. The reason for this is that Wisconsin's current tax structure has a graduated design and is far more progressive than those states that have no income tax.

Wisconsin's state motto is "Forward" and used to be lauded for it's progressiveness. In fact, it was Wisconsin's Republicans that gave the state this reputation.

Now, with Walker running the state, this is no longer the case as his main interest is serving his overseers. And, the one thing his overseers lust after more than possibly anything else, is the elimination of capital gains taxes. Considering that Walker is a man of little or no real substance and will bend to whatever political wind is blowing (Tea Party, anyone? Anyone? Bueller?), watch for it to be forced down the throats of the people.

If we're lucky, we'll end up with a tax structure that resembles the 'overall average' of data sets reflected in the chart above and those least able to fight back will end up bearing the heaviest load. That last part is sure to be a feature of whatever plan Walker comes up with because we now live in an echo of days past where the only ones that mattered were those with money.

Follow me on Twitter for more analysis on this and other topics.