WMC’s ‘Astounding’ $6.6 Billion Budget Deficit Solution: Tax Cuts for the Rich

MADISON, Wis. — Wisconsin Manufacturers and Commerce (WMC) has launched a newspaper ad campaign which argues the solution to the state’s $6.6 billion budget deficit is tax cuts for the rich “¢ the same economic plan enacted by George W. Bush and Congressional Republicans, which caused the nationwide economic crisis that plunged 47 states into deficit.

“Wisconsin Manufacturers and Commerce has launched yet another deceptive ad with the astounding claim that cutting more taxes on the rich is going to balance the state budget,” said Scot Ross, One Wisconsin Now Executive Director. “Both the Maine and North Dakota plans cited by WMC are nothing but tax cuts on the rich paid for by the middle class and the poor.”

Maine: Hiking Sales Taxes to Finance Regressive Flat Tax. The ad cites a Wall Street Journal editorial crowing about the regressive flat tax plan enacted in Maine. Although the WMC doesn’t use it, the article’s headline thunders “Finally, a State that Cuts Tax Rates on the Rich.” WMC also hides that in order to impose the flat tax, Maine replaced its more equitable graduated income tax with a regressive flat tax paid for by hiking sales taxes to make up the funding difference.

North Dakota: Over 70 Percent of Income Tax Cuts Go to Those Making Over $137,000. Unlike nearly every other state, North Dakota enjoyed a modest budget surplus and put 10 percent of it towards an income tax cut. But rather than distribute that tax cut to the families that needed it most, 71 percent went to North Dakotans making over $137,000 leaving pennies for the middle class.

”WMC doesn’t care about cutting the deficit anymore than they care about the middle class,” said Ross. “WMC is a one-trick pony “¢ cut taxes for our clients and make the middle class pick up the check.”

With no help from legislative Republicans, Democrats are in the middle of approving a budget plan which solves the budget deficit by including $3.2 billion in cuts, while protecting critical priorities for the people of Wisconsin such as job creation, education, health care, children and seniors “¢ without raising income taxes for anyone earning less than $225,000 a year, nor raising general sales taxes.