Photo by Michelle Stocker, The Capital Times

A Wisconsin driver who owns a typical sedan would pay $39 more in taxes on their fuel purchases annually, while the owner of an SUV would pay $54 more a year, under Rep. Dale Kooyenga’s transportation and tax plan.

In addition, a married couple with one child and an income of $50,000 that rents would pay $488 more in income and property taxes in 2019 under Kooyenga’s proposal than they would under current law, according to a memo Revenue Secretary Rick Chandler prepared for Gov. Scott Walker.

That same couple would pay $388 more in 2029, when the Kooyenga package is fully phased in, according to the memo that was shared with WisPolitics.com.

Kooyenga says the “vast majority of Wisconsinites” would see lower taxes under his transportation and tax proposal — a point he said the memo doesn’t highlight.

He said the document picked out cases of people who would pay higher taxes under the proposal. But he noted the last page shows about 85 percent of taxpayers coming out as “winners” under the plan in tax year 2029.

He said Assembly Republicans are willing to adjust the plan and find more ways to “maximize the number of winners.” Their goal, he said, was removing “special favors in our tax code” that accumulated over the decades while providing relief for the majority of Wisconsinites.

“We’re getting rid of special treatment in the tax code, and we’re looking at giving everyone a fairer treatment,” he said.

Chandler prepared the 11-page memo at Walker’s request to analyze Kooyenga’s plan to move the state toward a flat income tax over the next dozen years. It also calls for lowering the excise tax on gas while adding the sales tax to fuel sales and paring back minimum markup.

The document summarizes two Legislative Fiscal Bureau memos that were released when Kooyenga unveiled the plan last week. The Chandler memo also adds other observations about the impact of the proposal.

For example, Chandler wrote it would add $262 million to the structural deficit going into the 2019-21 budget. LFB has estimated Walker’s budget proposal would result in a structural deficit of just more than $1 billion.

The Kooyenga plan also would reduce state general fund revenues by $2.37 billion in 2029-30 due to the proposed tax cuts, Chandler wrote. That equals 14 percent of all state GPR revenue expected in 2018-19.

The memo also walks through the various tax credits Kooyenga proposed eliminating as the state would move toward a flat tax.

See more and read the memo at the Budget Blog.

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