Excuse me. Governor Walker said Wisconsin was broke. Can we afford to give money away?
There they go again -- those crazy kids in the Wisconsin legislature want to spend millions of dollars that we don't have. This Thursday, June 2, the Assembly Ways and Means Committee will hold a hearing on a bill to cut taxes on investment profit. Under this bill, AB 85, investors do not have to pay any state taxes on 60% of investment profits.
How much will this cost the state? The Wisconsin Department of Revenue estimates the state will lose $118 million in revenue for 2012, $113 million in 2013, and $127 million every year after that.
Who wins? The tax cut would give the top one percent of taxpayers (millionaires) over $5,400 apiece. A small number of middle class families earning $70,000 a year could cash in and collect — $88. People who earn their money by building homes, producing machinery, caring for the sick or protecting families from fire and crime do NOT get this tax break.
Who loses? Wisconsin would lose over $230 million in revenue in the 2011-2013 budget if the bill passes. That means even larger school classes, fewer fire and police personnel, less road repairs, more cuts in services for the elderly, children and people with disabilities.
The AB 85 tax cut on capital gains is a gift to the richest people in the state, a gift the rest of us can’t afford.
The lead authors are Rep. Ziegelbauer and Sen. Leibham. The hearing will be held in Room 328 NW. Let them know what you think of their plan. You can let the rest of the committee know how you feel too.
The following link will give you a list of members with hot links to their contact information.
PS -- What are capital gains?
-- Capital gains are profits from selling stocks, investment real estate, bonds and expensive assets like art.
-- Home sales are not included unless the profit is over $500,000.
-- Retirement accounts are treated as ordinary income with no capital gains tax break.
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