Viewpoint

Sorry, but retirees shouldn’t get special tax treatment

By Mike Nichols

Two Republican legislators are circulating a bill that would virtually eliminate all income taxes on retirees. It’s an effort to keep older spenders from fleeing Wisconsin — one that would be a bad idea.

Social Security already is exempt from income taxes in Wisconsin. The plan being circulated by Rep. David Steffen of Howard and Sen. Rachael Cabral-Guevara of Appleton would create tax exemptions for other retirement income from things such as IRAs, 401(k) plans and pensions.

The bill would exempt the first $100,000 of such income for single Wisconsinites 67 or older and the first $150,000 for married couples who file jointly.

We wouldn’t be alone. Some of our neighboring states, Illinois and Iowa, are among those that do not tax retirement income from IRAs, 401(k)s or pensions.

Research

It’s long past time to end Wisconsin’s minimum markup law

Years of Badger Institute research makes case for repeal 

After Minnesota lawmakers ended that state’s rule requiring a minimum 6% markup on gasoline, a former Wisconsin lawmaker who now works with a tax reform group argues Wisconsin should also end a legal requirement for retail markups.

Leah Vukmir, a former assistant majority leader in the Wisconsin State Senate, wrote in the Milwaukee Journal Sentinel this week that it’s past time for Wisconsin to repeal its minimum markup law.

Vukmir is correct that such laws hurt consumers by making goods more costly, and their Depression-era rationale about preventing unfair competition long ago was debunked.

The Badger Institute has been making this case for a long time. We commend our work to legislators looking for support in any repeal effort.

• 2022: Minimum Markup: The Price is Not Right

• 2020: State Law Inflates Prescription Drug Costs

• 2016: Real-World Impacts of Wisconsin’s Minimum Markup Law

• 2016: Minimum Markup Law: Why Is This Relic Still on the Books?

• 2008: Wisconsin’s Minimum Markup Law: Government-Mandated Pain at the Pump

Badger News

Institute honored as ‘Smart Bet’ by Atlas Network

Each year, Atlas Network selects ten partner organizations that are punching above their weight and generate impressive returns on philanthropic investment. These teams are known as Atlas Network Smart Bets.

The 2024 Smart Bets partners include groups with a clear track record of success in advancing individual freedom, in addition to up-and-coming rising stars which present unique opportunities for significant impact.

At a Glance

“A new survey of Wisconsin businesses paints an unflattering picture of the education system in the state. According to the Wisconsin Employer Survey, nearly three-quarters of businesses think students graduating from the public K-12 system are not prepared for the workforce. Making matters worse, 56 percent of respondents said they have employees who struggle with the ability to read or do math.”

Source: WMC Summer 2023 Employer Survey

Related Reading:

Amid illiteracy, where was the urgency?

By Patrick McIlheran

Badger Careers

Digital Outreach Associate

The Badger Institute’s next Digital Outreach Associate will develop and implement inbound marketing strategies and campaigns. Responsibilities include creating and managing content, including paid search ads, organic social media posts, and email/web marketing. He or she will also analyze and report on the effectiveness of inbound marketing efforts and adjust as needed.

Badger Events

Democracy, Freedom and a Massive Wake-up Call regarding Communist China

Mark your calendar for Tuesday, October 3rd as we welcome keynote speaker Mike Gallagher, U.S. representative for Wisconsin's 8th congressional district and Chairman of The Select Committee on the Chinese Communist Party.

Weekly Survey: Should lawmakers repeal the Wisconsin law requiring a minimum markup on groceries, gasoline and other consumer items?

Previous Poll Results:

What We’re Reading

• RealClear Politics: Censorship by Another Name Is Still Dangerous

• Angela Rachidi: Testimony: The Child Tax Credit: 25 Years Later

• WILL: Reforming the Governor’s Partial Veto: How Should It Be Done?

• Will Flanders: Lifting Sunken Boats

• National Review: Federalism Can Help Tame the National Debt (paywall)

Thank you

Your kindness and encouragement never cease to amaze us.

It is our joy and privilege to conduct the policy research that is shaping the future of freedom in our state, and we’re incredibly grateful that faithful supporters like you trust and empower us to keep doing it.

Invest in the Badger Institute

The Institute never has, and never will, accept government funding. We gratefully welcome your online donation or email Angela Smith, Executive Vice President.

The Badger Institute is a 501(c)(3) tax-exempt nonprofit organization funded solely by the generosity of foundations, companies and individuals.