More proof that most Wisconsinites would be losers under GOP tax scam

Now that the post-Holiday frenzy and frolic is dying down, it's time to get back to business. Let's check back in on the Piece of Shit tax bill that the GOP is trying to jam through Congress, and look at how people would be affected as it stands today.

The Institute on Taxation and Economic Policy has given a pretty thorough examination of the bill that passed the Senate Finance Committee earlier this month, and may be voted on in the next few days. The ITEP’s analysis shows the cynicism of the GOP plan, as it hikes taxes on individuals in a few years in order to stay within budget guidelines (to allow it to pass with 50 votes in the Senate), but allows corporations to keep grabbing their part of the tax cut.

In addition, the bill gives back-door tax increases to individuals in two other ways- Chained CPI and messing with Obamacare.

Under the bill as written, the provisions affecting corporations would remain in effect in years after 2025, but of the provisions affecting individuals, the only two remaining in effect would be revenue-raisers. One would raise taxes by using an inflation measure that would more quickly shift middle-class income into higher tax brackets and gradually make provisions like the Earned Income Tax Credit less generous. (This measure is often called the chained consumer price index or chained CPI).

The other revenue-raiser is the provision repealing the mandate to obtain health insurance. This would result in a small revenue loss because no one would pay the penalty that is in effect today for some individuals who go without health insurance. But it would also result in a much larger revenue gain because some who would no longer be covered are those who receive tax credits to pay insurance premiums under the Affordable Care Act. Fewer premium tax credits would be paid out, resulting in a revenue gain.

Under the Senate bill, at least 29 percent of households would pay higher taxes in 2027 than they would under current law. Among the bottom three-fifths of income-earners, 33 percent would pay higher taxes in 2027. While most of the figures in this analysis include the tax impacts of the health insurance mandate repeal as well as other provisions in the bill, the estimated share of taxpayers with a tax increase does not include the effects of the mandate repeal. (While the impact of the mandate on each income group can be determined, it is more difficult to identify the precise number of taxpayers affected in each income group.) This means that the share of taxpayers with a tax hike is likely to be greater than what is estimated here.

In addition to the lack of subsidies for insurance, ITEP adds that the higher premiums that would result from ending the Obamacare mandate would also leave the typical lower-income or middle-income person worse off beyond the impact of higher taxes. And if the rising deficit leads to cuts in stabilizers like Medicaid and Social Security, that's another hit to the majority of Americans under this Piece of Shit GOP Senate bill.

As bad as this is, Wisconsinites will likely have it even worse. The ITEP did analyses for every state, which showed that Wisconsin is one of 19 states that would have its citizens paying higher taxes in 2027 than it does today. The Wisconsin Budget Project broke down the findings, and summarized them accordingly.

More specifically, new figures show that 10 years from now – when the amended Senate plan has been fully phased in – the lowest earning three-fifths of Wisconsin taxpayers would pay about $365 million more, while the top one percent of Wisconsinites would save an estimated $201 million that year…



The following bar graph illustrates that Wisconsin taxpayers in the bottom three-fifths of earners (those making less than $94,700) would have tax increases averaging from $180 to $200 in 2027, while the top one percent of earners (making more than $693,000) would get an average tax cut of nearly $7,900.

Yet I’m not thinking this regressive reality is why Sen. (mo)Ron Johnson said he originally opposed the Senate bill – (mo)Ron wants it to be a BIGGER giveaway to LLCs, likely at the expense of anyone making less than 6 figures. But the fact that most Wisconsinites will be hurt should make you ask why all 5 Republican Congressmen from Wisconsin voted for a similar tax package in the House.

We gotta keep our eyes on this Piece of Shit tax bill in the coming weeks, as the GOP changes the bill and tries to ram through votes with few hearings or notice. Because despite the fact that it'll make things worse for a lot more Americans than it helps, and the fact that the overwhelming majority of Americans oppose this Piece of Shit, the few that are helped are the ones with the most money lying around to give in donations. It's a classic case of "which side are you on?", and we need to be armed with the facts to blast back against the Koched-up propaganda machine that will try to convince people that THIS TIME, what trickles down won't be piss.

Don't fall for it, and make any GOP greedhead that votes for this Piece of Shit pay a major price.