WMC, the Wisconsin Budget, and the Absence of Truth: Part II

Despite the WMC allegations, the modifications to Wisconsin taxation of capital gains taxes is not an attack on small business. It does increase taxes and correct some inequities in Wisconsin tax collections but the analysis of the impact of the tax shows struggling small business owners have little to worry about.

When WMC attacks the state budget it wraps itself in the flag of small business owners, even though their real intention to look out for the interests of the wealthiest Wisconsinites and to cripple government by limiting its resources.

Here is the impact in the change in capital gains taxes:

• For the average couple, filing jointly in Wisconsin, the change means a $27 increase or 8/10ths of one percent. I doubt that is going to break any small business. It it does, WMC can lower its membership dues by $28.

• At the high end, for that top 5% of income earners in the state, it will mean an increase of 1.6% or $246 annually. My guess is that most small business owners, told that they could have the top 5% of income in Wisconsin, would gladly pay the $246. I know I would.

• And if you make it into the top 1% of incomes in Wisconsin, the difference is $926. Chump change for those who can afford to send in thousand of dollars to elect Michael Gableman to the Wisconsin Supreme Court.

Last month, May 15 we posted we posted WMC, the Wisconsin Budget, and the Absence of Truth: Part 1

It was in response to a Wisconsin Manufacturers and Commerce (WMC) commentary Insight: Wisconsin at the Crossroads. where claims were made that increases in the capital gains taxes would effect retirement accounts and:

Under the populist guise of “soaking rich people,” the Governor’s budget would increase state taxation of capital gains by 50 percent — hitting small businesses who use their gains to create jobs and grow their companies.

Since the publication of that post WMC recanted and admitted the claims pertaining to retirement accounts were incorrect but it keeps up its bogus defense of small business.

Comments

[Belleville]

Very interesting party lining. Yet. The top 5% of earners would rather leave Wisconsin than pay pay the $246 you assume. Watch it happening. There are no top 1% earners in Wisconsin left, there are more suitable states to call a residence. The larger picture is so often missing. The state has no become the proud owner of the only two remaining mass production industries. Processing students through an education, and babysitting inmates. This is the accomplishments of past demoncratic spending. The cure is not short term or easy. But drastic and dramatic.