Walker's plan calls for a refundable tax credit of $1,000 per year, for up to five years, for college graduates who completed their education at a college or university located in Wisconsin. The credit would be available to students who attended a University of Wisconsin or Wisconsin Technical College system school, a private not-for-profit college, or a for-profit institution.Well that's nice for people in their early-to-mid 20s, but what about the rest of us, Scotty? Many of us with degrees are wondering why we should stay in a state that already pays significantly lower wages than we can find in most other Midwestern locations, and many of us have student loan debts that are taking up a sizable amount of our incomes, got anything for that?
To receive the credit, graduates would need to have earned a degree beyond a one-year degree or certificate, live in Wisconsin for at least one year after graduation, and have earned income in Wisconsin. The credit could only be claimed for one continuous five-year period, and would not apply retroactively to previous graduates.
Nope, but the opposition party and Walker's opponent does.
Democrats in the state Legislature have repeatedly introduced legislation to create a student loan refinancing authority, which would be charged with creating a system to buy federal and private loans and refinance them at lower rates. Under the Democratic proposal, borrowers would also be able to deduct student loan payments from their income taxes….Walker's response to Wisconsinites with student loan debt was that they should call a bank and refinance their loans(good luck!).
[Tony] Evers' campaign said that in addition to supporting the refinancing authority, Evers would allow students to deduct student loan payments from their income tax, provide students and parents with detailed information about student loans and collect data on student debt in Wisconsin.
We sure this guy wants to keep smart people here anyway?
With that response proving insufficient, and with young voters breaking Democratic in big numbers and Walker trailing in the polls, Gov Dropout threw this desperate tax break out there to try to stop the bleeding. It also seems to be available to a wide variety of people, and doesn't care whether someone had their school paid for, or if they are still paying off their debts.
Students who attend an accredited out-of-state institution but maintain their Wisconsin residency throughout college and meet all other eligibility criteria could also claim the credit.So income levels are not a factor, and an ever bigger red flag about Walker's plan is that there is no cap on the number of people who would take the credit. So how much is this thing going to cost, and (as usual in WalkerWorld) WHERE’S THE MONEY GOING TO COME FROM? It’s already documented that there is a $1 billion structural budget deficit in the General Fund for the next budget, and the cost of this idea would be on top of that.
And no cap on people who could apply? That could get out of hand really fast, much like what happened with the Manufacturers and Agriculture tax credit (aka “The Big Giveaway”), as noted by the Wisconsin Budget Project.
The cost overrun amounts have gotten larger over time, growing from $6 million in 2013 and growing to $205 million more than originally anticipated for 2019. In the budget period that runs from July 2017 to June 2019, the MAC is estimated to cost $397 million more than lawmakers anticipated when they passed the credit in 2011.The difference in approaches in how to keep young talent is Wisconsin is a very good illustration on what each of the candidates find important – only a lifetime politician like Scotty who lives in GOP BubbleWorld would think that a tax cut is what drives everyone’s life decisions, while Evers recognize how student loans are holding back economic activity and isn't beholden to banking interests that keep him from doing the right thing.
In fact, if Walker wants to have talent come to and stay in Wisconsin, a large part of the answer will be something Scotty doesn’t want.
Millennials are fleeing Wisconsin in droves. They don't want a bribe — they want clean air, clean water, good schools, high wages, mass transportation, and healthcare.
— RedPool (@BadgerStew) September 11, 2018
In other words, they want all the things that Scott Walker has attacked for the past 8 years.#SoLongScott
How about getting rid of Walker and his backward agenda so graduates want to live in Wisconsin without having to pay them to stay? https://t.co/Nk8mW2BiSm
— redforeman62 (@redforeman62) September 11, 2018
So basically a bonus of a little less than .50/hr. In many states a recent college grad can make a higher salary than here in Wisconsin.
ReplyDeleteIn fairness, that's a tax writeoff of $1,000, so more like a $16,000 bonus. But no word on whether that's refundable (you get the full $1,000 regardless) or limited by how much state income tax you pay.
DeleteAlso, as you accurately bring up, it doesn't do anything in dealing with the wage gap that exists in Wisconsin vs other states.
Sorry, it is refundable. So that's a nice tax break. But how many people will take advantage, and it won't do anything for anyone that's already graduated.
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