Wednesday, December 10, 2014
To Spur Austerity, State Republicans Propose Lowering "Tax Cheaters" Tax Rate
Funny it was only little more than a month ago how GOP social media tools attacked Mary Burke, claiming the "democrat" either does not pay enough in state taxes or cheats the state out of corporate taxes by paying a lower rate using S-Corp filing status.
But only weeks after the election, GOP legislators (code for WMC/ALEC political hacks) have completely reversed their position. They are now claiming that the state's top tier tax rate - the rate for individuals making more than $240K annual - must be lowered. Not to repeat myself here, but the state's current top tax rate IS the lower rate republicans accused "corporate tax cheater" Burke and other Corp-S filers of "taking advantage of" to not pay their fair share in state taxes.
They needed to win an election.
Company shareholders and individuals filing taxes under “Subchapter S” of the IRS code allows them to pay at the lower personal individual tax rate for their income bracket — not the higher corporate rate. It's safe to assume that most people subject to the state's top tax rate are Corp-S filers. This is the "cheating" tax rate WMC legislators want to lower. Got it?
During the height of the guber-campaign, it was also telling how the state's largest business group, the WMC, told Scott Walker to tone down the "populist" rhetoric regarding outsourcing and Burke's tax filing status. In retrospect, the WMC knew that what Walker was wrongfully accusing Burke of was the WMC's actual legislative agenda in miniature.
I won't bother to get into the admission from the tax cut sponsors that the cut, although laughably framed as an "economic development" proposal, won't be able to generate enough economic development to offset the $250 million budget deficit hole it will create. * facepalm *
They suggest to offset the lost revenue with spending cuts. So yes, what they are proposing to spur is ...austerity. Completely wild-ass and off the rails.
Democurmudgeon - Big Business Bosses demand end to Highest Tax Bracket for the Wealthy and Local Control for Mining...that's all.
Posted by Lou Kaye at 8:57 PM