Proposal By Brookfield Rep. Dale Kooyenga Faces Uncertain Future
(WPR)---Assembly Republicans have unveiled a budget plan that would make sweeping changes to Wisconsin's tax system, applying the state sales tax to gasoline purchases to pay for roads. At the same time, it cuts income taxes that pay for schools.
The plan authored by Rep. Dale Kooyenga, R-Brookfield, would move away from Wisconsin's longstanding progressive income tax over time toward a 3.95 percent "flat tax" for all taxpayers, regardless of their income. Wealthier residents would see the largest tax cuts.
Kooyenga introduced the plan Thursday flanked by dozens of his Assembly Republican colleagues at a state capitol news conference. He acknowledged that many of them had problems with elements of the plan.
"Is this perfect for anybody? Is this this like a utopian plan for transportation or income taxes? No," Kooyenga said. "We understand that we compromise and we move forward as a team."
The plan would also end Wisconsin's minimum markup on gasoline that prevents big retailers from selling gasoline below cost, a move long fought in Wisconsin by smaller retailers and grocers. It would also end the state's prevailing wage, a minimum wage that contractors are required to pay people who work on state road projects.
Democratic Assembly Minority Leader Peter Barca, of Kenosha, noted the plan did not spell out which road projects would move forward, and said it wasn't sustainable over the long term.
"It's ironic that here we are with six weeks left before a new budget is due and they unveil a plan that will not solve the transportation problem," Barca said. "Instead what they'll do ... is to lower taxes for the very wealthy."
Editor's Note: This story will be updated.