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Sunday, July 3rd, 2016

Walker Thought His Business Tax Break Would Stimulate The Economy. The Early Returns Aren’t Good.

Author:     Aaron Rupar
Source:     Think Progress
Publication Date:     Jun 30, 2016 5:08 pm
 Link: Walker Thought His Business Tax Break Would Stimulate The Economy. The Early Returns Aren’t Good.
Stephan:   If you read SR regularly you know about the economic disaster brought on by Sam Brownback in Kansas. Well, here's Governor Scott Walker's report card. I do not understand why the national media is so tone deaf on this. The failure of Republican governance is one of the most important stories in the country today, and should be a major factor in the upcoming election.
Republican Governor of Wisconsin Scott Walker

Republican Governor of Wisconsin Scott Walker Credit: AP/Scott Bauer

In 2011 — the same year Scott Walker became governor — Wisconsin enacted a Manufacturing and Agriculture Credit (MAC) meant to stimulate the state economy by providing tax relief for those who use property for productive purposes. A new study indicates it’s providing lots of tax relief for the rich but not much economic stimulus for anybody else.

The Wisconsin Budget Project study finds that MAC is taking a much greater toll on the state budget than lawmakers envisioned. Though it was initially estimated that the credit would reduce tax collections by $129 million in fiscal year 2017, the Wisconsin Department of Revenue now estimates it’ll cost $284 million next year. That’s roughly $30 million more than the amount Walker and the Republican-controlled legislature cut from the University of Wisconsin System in 2015.

The study also finds that MAC disproportionately benefits the rich and has had a negligible impact on job creation. Tax filers who make $1 million or more received […]

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