Adding to the Deficit — Through Subtraction

by | June 8, 2011

Home 9 Uncategorized 9 Adding to the Deficit — Through Subtraction ( Page 2 )

According to the newest Wisconsin Budget Project blog post, the Joint Finance Committee seemed geniunely committed to addressing the structural deficit (at least on the spending side), until it created a last-minute tax break for manufacturers. This move will nearly eliminates the income tax for many corporations that produce goods in the state.

Here’s an excerpt:

Some politicians and pundits seem to think that structural deficits can always be attributed to phased-in spending increases or short-term budget-balancing measures (such as “raiding” other funds or restructuring bonds). They overlook the fact that delayed or phased in tax cuts can also produce or add to structural deficits.

The short-term political expediency that sometimes leads lawmakers to approve deferred spending increases that they cannot currently afford can also induce them to approve tax cuts that are now unaffordable, and the effects on the structural deficit can be the same.

Read the newest Budget Project blog post for more.

Kids Forward
Kids Forward

Join us to build a Wisconsin where every child and family thrives.

Recent

Wisconsin Health Insurance Eligibility

Wisconsin Health Insurance Eligibility

Below are infographics detailing how different groups are affected by the health insurance landscape in Wisconsin, and which programs each group is eligible for by income. They have been updated with the new 2024 Federal Poverty Levels (FPL). ACA Eligibility and FPL...

Immigrant Taxpayers Deserve Dignity and Justice

Immigrant Taxpayers Deserve Dignity and Justice

Undocumented Immigrants Pay $198.9 Million in Taxes in Wisconsin By Liliana Barrera & William Parke-Sutherland Immigrants have been and continue to be vital to our communities. Nearly 300,000 immigrants in Wisconsin—about 76,000 of whom are undocumented—have put...

Sign up for Emails

Your address helps us identify your legislators and the most relevant messages to send you.