ATR Supports Wisconsin Tax Reform Efforts
Americans for Tax Reform President Grover Norquist sent a letter to all legislators in Wisconsin today, urging them to support a tax reform proposal put forth by Rep. Kooyenga. The proposal would lower rates, eliminate some tax brackets, and close loopholes. The letter reads as follows:
I write in support of Rep. Dale Kooyenga’s effort to expand the income tax cuts first proposed by Gov. Scott Walker. This tax reform plan broadens the tax base, reduces tax rates and simplifies the code. It is an important step toward a more competitive Wisconsin.
The state is projecting a budget surplus of $575 million, and this measure correctly dedicates the majority of that to tax relief. It is also important to note that this tax relief is structured the right way: It delivers a $752 million income tax cut while reducing the number of tax brackets and getting rid of tax loopholes.
By 2015, Wisconsin’s personal income tax would be scaled back from five brackets to three, with rate reductions across all income levels. Low-income and middle class families would benefit from significant reductions in their tax burdens; married joint filers earning $29,020 would see a tax cut from 6.5 percent to 5.94 percent, according to the MacIver Institute.
But most importantly, the bill scraps many credits and deductions while remaining a large net tax cut. Too often politicians view “tax reform” as an excuse to raise revenue. Rep. Kooyenga’s plan recognizes that tax reform must reduce the burden of government while streamlining its tax code.
Wisconsin has made great strides over the past three years. Gov. Walker and the legislature have taken bold action to reduce the size of government, facilitate property tax cuts, realign government labor costs with economic reality, and create jobs. The next step is tax reform. The governor’s initial plan is certainly worthy of praise. But with new revenue numbers, it is now clear that the legislature can go even further.
I offer my full-throated support of Rep. Kooyenga’s tax reform plan and urge you to cast your vote in favor of this overhaul.
To read a PDF copy of the letter, click here.