Would a Flat Tax Work for Wisconsin?

Wisconsin has been known as the birthplace of the progressive state income tax system. However, with some lawmakers pushing for a switch to a flat tax, the question remains whether this drastic change would be beneficial for the state and its residents.

Governor Tony Evers has previously expressed his skepticism about a flat tax, calling it a 'non-starter.' Instead, he has pushed for finding common ground between tax cuts and increased shared revenue funding for Wisconsin municipalities. This stance is reflected in his campaign promise to return money to taxpayers, which he later fulfilled by signing a Republican-authored tax cut last year.

On the other hand, Senate Majority Leader Devin LeMahieu (R-Oostburg) believes that the state government taxes its citizens too much and advocates for a flat tax. According to him, this proposal would 'fundamentally transform Wisconsin's individual income tax' and keep more money in the pockets of hardworking Wisconsinites.

However, there are concerns about the potential impact of a flat tax on the state's revenue. The Legislative Fiscal Bureau estimates that the state would lose $14.2 billion in lost tax revenue in the first four years alone. This could have significant implications for the state's ability to fund its services and programs.

Despite these concerns, proponents of a flat tax argue that it would provide relief to taxpayers. According to calculations, the average taxpayer would see a decrease of $4,415 over the four-year phase-in period, with an annual savings of about $1,800 after that.

While a flat tax may seem appealing in theory, its implementation would require careful consideration of the potential consequences for Wisconsin's economy and residents. The state would need to weigh the benefits of reduced taxes against the potential loss of revenue and impact on essential services.

Ultimately, whether a flat tax works for Wisconsin depends on how it is implemented and the trade-offs involved. As lawmakers continue to debate this issue, it is essential to consider both the pros and cons of such a drastic change to ensure that any decision benefits the state and its residents in the long run.

Would a flat tax work