FOR IMMEDIATE RELEASE
For Release: April 18, 2023
Contact: Emily Miota, emiota@kidsforward.org
This Tax Day, as many Wisconsin families struggle to make ends meet, the wealthiest Wisconsinites are allowed to pay a smaller share of their income to taxes than low and middle income families.
This lopsided system is a choice by state lawmakers that makes it harder to solve the problems Wisconsin families face, like access to affordable child care, quality health care, and more. Lawmakers can un-rig the tax code to restore fairness and ensure everyone, regardless of race or place, has the opportunities they need to thrive.
Overall, when considering all state and local taxes, wealthy residents—who are disproportionately white—already pay a much lower effective tax rate than the poorest taxpayers—who are disproportionately people of color. Any change in state policy that simply reduces individual income tax rates will make income inequality even worse, particularly for people of color.
“A just tax system creates opportunity for everyday families, not just the wealthy few,” said Kristin Schumacher, Research Director for Kids Forward, “When the wealthy pay their fair share of taxes, Wisconsin can have better public schools, affordable child care and health care, and improved quality of life for all of us.”
While state leaders debate further tax cuts for the wealthy few:
1 in 3 Wisconsin households with children have struggled to pay for basic expenses like food, housing, and child care. Furthermore, from March 2021 to February 2023, 6 in 10 Black households with children struggled to pay for basic expenses. This reflects Wisconsin’s historic and ongoing forms of racism and oppression in education, employment, housing, and health care that make it harder to get ahead.
The wealthiest residents of the state have seen explosive growth in their incomes, while everyone else has seen little or almost no income growth. From 1980 to 2021, the average adjusted gross income for the top 1% increased by 215%, after adjusting for inflation. Wisconsinites with middle incomes saw their average adjusted gross income decrease by 5%. And, taxpayers in Wisconsin with the lowest incomes saw their average adjusted gross income decrease by 44% over the past 40 years. Growing income inequality hurts all of us, but it particularly hurts people of color because the concentration of wealth for the richest 1% benefits a group that is disproportionately white.
State leaders can craft a state budget that seeks to address income inequality by providing adequate resources for schools and teachers, supporting children and families, and making sure everyone has access to health care.
“We need the rich and corporations to pay their fair share so we can invest in a Wisconsin where everyone can thrive—no exceptions,” stated Schumacher.
Kids Forward inspires action and promotes access to opportunity for every kid, every family, and every community in Wisconsin, notably children and families of color and those furthest from opportunity. We envision a Wisconsin where every child thrives. Using a research- and community-informed approach, we advocate for effective, long-lasting solutions that break down barriers to success for children and families.