Tuesday, Nov. 1, 2022
Would a flat tax lead to most Wisconsinites having to pay more taxes?
If enacted in Wisconsin, a "revenue-neutral" flat income tax of 5.22% would bring tax increases for the 96.6% of Wisconsin taxpayers with adjusted gross incomes between $20,000 and $300,000, according to a group of over two dozen economists.
More specifically, 72.5% of all filers would experience an average tax increase of $249, according to estimates from the nonpartisan Legislative Fiscal Bureau. Currently, income tax rates in the state range from 3.54% for couples earning up to $17,010 a year to 7.65% for couples earning more than $374,600 annually.
In a letter, the group of economists warned a flat tax "would increase taxes on the middle class and working poor while handing the very rich a handsome tax cut."
Republican gubernatorial candidate Tim Michels said in October 2022 that he is open to a flat tax, but not if it would raise taxes for the lowest income Wisconsinites.
This fact brief is responsive to conversations such as this one.
Sources
- University of Pittsburgh Revenue neutral flat tax distribution memo
- Urban Milwaukee Letter from more than two dozen economists on Wisconsin flat tax proposal
- Milwaukee Journal Sentinel Economists say Tim Michels' flat tax idea would only benefit the rich
- Milwaukee Journal Sentinel GOP governor candidate Tim Michels says he is open to a flat income tax for Wisconsin
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Fact briefs are bite-sized, well-sourced explanations that offer clear "yes" or "no" answers to questions, confusions, and unsupported claims circulating online. They rely on publicly available data and documents, often from the original source. Fact briefs are written and published by Gigafact contributor publications.
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