Huebsch: Scrap the income tax, replace it with 13% sales tax

[TheMightyFavog]

http://www.bluecheddar.net/?p=28514

Welcome to today’s edition of Let’s Poke at Sanity With a Sharp Stick and See What Happens, performed by The Walker Administration and underwritten by Jane Q. Wisconsin-Taxpayer.

Take a quick look at the chart above on Wisconsin’s 2007 taxes. This comes from the Institution on Taxation and Economic Policy.

Then consider that the Walker administration in the guise of DOA chief Mike Huebsch is floating a proposal to take Wisconsin’s 5% sales tax to around 13% and eliminate the income tax.

From WHBL.com:
“The state sales tax rate is currently 5 percent; Huebsch says adding 8 cents would allow the state to eliminate income taxes. ”If we were just going to eliminate the income tax and raise our sales tax to match that, we would have to raise it somewhere in the neighborhood of about 8 cents. We would have to go to about 13, maybe 13 1/2 cents in our sales tax.” Individual income taxes equaled $7.0 billion in 2012 in Wisconsin.”

This will crate jobs! Granted these jobs will be in Iron Mountain, MI, Menominee, MI, Dubuque, IA, Marquette, IA, La Crescent, MN, Winona, MN, The Twin Cities, Rockton, IL, and Chicago.

[Ed Suspicious]

1. That's not gonna be good for business. n/t

[rdharma]

3. Is this Huebsch guy sponsored by the Koch brothers?

This sounds like something they would dream up!

[LiberalFighter]

7. I sure as hell wouldn't be buying any goods if I could help it when I am in Wisconsin.

And avoid buying goods via the internet from any business there.

No more Badger or Packer items either.

[Scuba]

2. These people are dangerous.

[rbixby]

4. It would be a huge boost to the MN economy, that's for sure.

[ewagner]

5. let's see here......

What percentage of their income do persons earning over $500,000 per year pay in sales tax?

What percentage of their income do persons earning under $100,000, $50,000 and $30,000 per year pay in sales taxes?

Wasn't the the classic example of a "regressive tax" in Econ 101?

[dragonlady]

6. Bookmark this for next year:

MADISON (WSAU) Governor Scott Walker says he won’t try to eliminate the state income tax in the new state budget for the next two years. But he plans to at least consider the idea for the 2015 budget, assuming he wins re-election next year.

Governors in Kansas and Louisiana are generating a lot of buzz with their ideas to dump the income tax in favor of a higher sales tax. But liberals say it would put more of a squeeze on low-and-middle income families, who have no choice but to spend larger percentages of their incomes on goods-and-services. The subject came up in Wisconsin on Tuesday, when Mike Huebsch – who runs Walker’s administration – answered a question at a meeting of the Wisconsin Counties Association by saying that Walker is considering a dumping of the income tax.

Today the Republican Walker said it would be down the road, if it happens at all. He said he might to want to see how the idea fares in other states.

http://wtaq.com/news/articles/2013/feb/06/walker-no-plans-to-eliminate-income-tax-in-2013-will-consider-for-2015/

[LiberalFighter]

8. How many will buy their cars or trucks outside the state?

They would save over $1500.

[TheMightyFavog]

9. At least cars can easily be traced for people who don't report on their income taxes

Everything else, especially if purchased with cash... Not so much.