Economists are saying that Scott Walker’s income tax cut is unlikely to benefit taxpayers or the economy, according to a new report in the Wisconsin State Journal.
Analysis by the Institute on Taxation and Economic Policy indicates that the wealthiest taxpayers, those earning $374,000 or more, would see the greatest benefit from Walker’s income tax cut.
The Wisconsin State Journal reports:
“’The governor has argued that by putting more money in people's hands, the tax cuts will spur economic growth in Wisconsin,’ said Andrew Reschovsky, a UW-Madison professor of public affairs and applied economics. ‘There is no evidence that the tax cut will do much to encourage growth and job creation.’
Mark Schug, a UW-Milwaukee professor emeritus who now consults in the area of economic education, agreed such a cut is not likely to be an economic boost.”
The $343 million income tax cut is being hailed by Walker as the centerpiece of his second biennial budget, which is expected to grow Wisconsin’s deficit to $2.6 billion – a nearly $600 million increase.
“Even top economists agree that Scott Walker’s smoke-and-mirror income tax cut does nothing to turn around a Wisconsin economy that is ranked second worst in the nation because of Scott Walker’s failed policies,” Democratic Party of Wisconsin Chair Mike Tate said Friday. “Instead of skyrocketing the deficit to give out a tax cut that won't help middle-class families, Scott Walker should focus on fully funding the critical investments in education, healthcare and jobs training programs that he's cut to the bone."