According to the President’s proposal, the second stimulus will be paid almost entirely by raising taxes and permanently capping itemized tax deductions for some Americans, and Wisconsin taxpayers will be hit particularly hard.
The President’s plan offsets his new stimulus by limiting the tax value of allowable deductions to 28 percent for individuals and families in the top two tax brackets. Reports indicate that limiting these tax deductions will increase taxes by around $405 billion.
Wisconsinites stand to lose in this game of tax-and spend, and deserve to know that many taxpayers— not just ‘millionaires and billionaires—would face a higher tax liability.
Wisconsin has one of the highest state income and local property tax burdens in the US according to the Tax Foundation, and as a result, residents rely on itemizing their deductions more than other states. This tax increase will hit Wisconsinites, who will reach that 28 percent cap much faster, and feel the impact in their wallets much more than in other states.
By contrast, in states like Texas, where there are no state income taxes and low property taxes, people will be more able to absorb these caps.
The same failed policies of the past won’t spur the future economic growth America needs, and instead will stall the job creation we are now seeing in Wisconsin. House Republicans are committed to pursuing common sense solutions to getting America back to work, but this proposal relies on tax increases that both parties have already rejected. This time, I am even more concerned because Wisconsinites will end up shouldering more of the burden.”
Congressman F. James Sensenbrenner Jr. (R-Wis.) represents Wisconsin’s Fifth Congressional District.