The headline in the paper read "Much of Walker’s proposal would go to top 20%, study says."
This, the ensuing article tells us, "complicates" the notion that Walker has proposed a middle class tax cut.
Not really. The same article points out that 80% of the proposed cuts go to persons making $ 162,000 or less.
Sounds like a middle class tax cut to me.
We saw the same claims made with respect to cuts in the federal
income tax shepherded through Congress by President Bush in 2003. For
years, we were told that the former President had "cut taxes for the
rich" when, in fact, he had cut taxes for everyone. (In fact, the Bush
tax cuts were weighted slightly toward lower income taxpayers.)
That this story was, at best, incomplete and, at worst, misleading
was ignored until those tax cuts were about to expire at the end of last
year. It turned out that getting rid of the tax cuts "for the rich" was
going to raise the bejesus out of taxes on the middle class.
Although Walker's political opponents will claim that his proposed
cuts are slanted toward upper income taxpayers, the opposite is true.
The lower your income, the larger your the of your taxes that the
proposal will cut.
Of course, in a world where upper income
taxpayers pay the most tax, a reduction in tax rates are going to
benefit those taxpayers. As Willie Sutton put it, that's where the money
Of course, one can always argue that whatever share that
they do pay ought to be higher. In theory, the answer to "how much do
you need" can be "how much do you have."
But one may argue,
instead, that rate reductions are most likely to lead to increased
economic activity because they increase the marginal return on working
In any event, the Governor has proposed a middle class tax cut.
Cross posted at Purple Wisconsin.