![]() ![]() There are numerous ways Wisconsin could move to a flat income tax while benefitting Wisconsinites across the income spectrum. Michels didn't release a specific tax plan, but it was clear that no one was proposing - and indeed that he had expressly ruled out - a 5.22 percent flat tax with no other changes, which is the assumption critics have run with to argue that only the wealthiest Wisconsinites would get a tax cut. That didn't stop critics from attempting to tie Michels to a specific tax plan, including a 5.22 percent rate with no other changes, which would raise taxes on many Wisconsinites - an outcome Michels specifically said he wanted to avoid - or a flat rate of 3.54 percent (the current lowest rate) with no other changes, which would create severe and irresponsible budget shortfalls given the state’s current spending levels. Michels’ statement made clear that (1) he was exploring the possibility of a rate just below 5 percent, and (2) because a rate just below 5 percent with no other changes would raise taxes for many Wisconsinites, other tax policy changes would be necessary to achieve his goal of protecting those who currently pay a lower effective rate. I do not want to raise the taxes on anyone." If you had a flat tax at that number, the tax level would actually come up for those on the lowest income bracket. "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 . Right now, it looks like we could get it somewhere just below 5%. Michels, who lost his bid to unseat incumbent Gov. Since Republican gubernatorial candidate Tim Michels first voiced openness to a flat individual income tax, he said he wanted to avoid raising taxes on anyone. It is especially important to know that a flat tax can be adopted without raising taxes on low-income households. ![]() It’s worth taking a step back to understand what was being considered in Wisconsin - and what the ramifications might be. Unfortunately, there was confusion, with bold claims made based on plans that didn't exist, including claims that a flat tax “would increase taxes on the middle class and working poor.” During this fall's gubernatorial race, the spotlight was on a potential flat individual income tax - and its effects on the state’s taxpayers and economy. ![]()
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