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Profs: Proposed income tax cut falls short of Gov. Walker claims


MADISON, WI (WTAQ) - A UW-Madison professor says there’s no evidence that Governor Scott Walker’s proposed income tax cut would spur economic growth in Wisconsin.

The Republican governor has proposed a 2 to 3 percent income tax cut, by returning to taxpayers a projected surplus of $343 million in the current state budget that expires in June.

UW professor Andrew Reschovsky says he cannot see how such a tax cut would help the economy grow and new jobs to be created, as Walker claims.

UW-Milwaukee professor emeritus Mark Schug also says the proposed tax reduction is, “not sufficient.”

Walker spokesman Cullen Werwie said the governor did the best he could, considering the constraints of the state budget.

Walker has highlighted his plan as a tax cut for the middle class, but the Institute on Taxation and Economic Policy says it would help the rich a lot more.

The Wisconsin State Journal says a family of 4 making $80,000 would get $106 a year back – while a family making $374,000 or more gets $285 back. And the Wisconsin Taxpayers’ Alliance says the Walker plan does virtually nothing for families making $21,000 or less.

Under current tax credits and exemptions, they’d pay nothing, and would get a $575 refund each year.