School choice answers prayer, direct primary care, education funding Celebrating 35 years of advancing freedom in Wisconsin Flatten, Don’t Raise A Flat Tax in Wisconsin Can Deliver Tax Relief for Everyone By Katherine Loughead As Wisconsin’s gubernatorial election draws near, the spotlight is on a potential flat individual income tax—and its effects on the state’s taxpayers and economy. Unfortunately, there has been much confusion, with bold claims being made based on plans that don’t exist, including claims that a flat tax “would increase taxes on the middle class and working poor.” It’s worth taking a step back to understand what is and isn’t under consideration in Wisconsin—and what the ramifications might be. It is especially important for stakeholders to know that a flat tax can indeed be adopted without raising taxes on low-income households. Since gubernatorial candidate Tim Michels (R) first voiced his openness to a flat individual income tax, he has said he wants to avoid raising taxes on anyone. In early October, he told reporters, I’m going to sit down with all the smart tax people; we’re going to figure out how low we can get the income tax. . . . Right now, it looks like we could get it somewhere just below 5%. If you had a flat tax at that number, the tax level would actually come up for those on the lowest income bracket. I do not want to raise the taxes on anyone. Michels’ statement makes clear that (1) he is exploring the possibility of a rate just below 5 percent, and (2) because a rate just below 5 percent with no other changes would raise taxes for many Wisconsinites, other tax policy changes would be necessary to achieve his goal of protecting those who currently pay a lower effective rate. This has not stopped critics from attempting to tie Michels to a specific tax plan, including a 5.22 percent rate with no other changes, which would raise taxes on many Wisconsinites—an outcome Michels specifically said he wants to avoid—or a flat rate of 3.54 percent (the current lowest rate) with no other changes, which would create severe and irresponsible budget shortfalls given the state’s current spending levels. While Michels has not yet released a specific tax plan, it is clear that no one is proposing—and indeed that he has expressly ruled out—a 5.22 percent flat tax with no other changes, which is the assumption critics have run with to argue that only the wealthiest Wisconsinites would get a tax cut. There are numerous ways Wisconsin could move to a flat income tax while benefitting Wisconsinites across the income spectrum. The most obvious solution is to flatten the rate while increasing the standard deduction, as proposed by the Tax Foundation and the Badger Institute in the July 2022 report Tax Reform Options to Improve Wisconsin’s Competitiveness. Continue reading Choice Stories School choice helps family rebound after tragedy At the start of the pandemic in 2020, Wishkub Kinepoway faced two family crises with some crying, some praying and a lot of determination. A member of the Bad River Band of Lake Superior Chippewa Indians and a Shawano County transplant, Kinepoway knew she needed to make a change for her children. She also knew that change wouldn’t come without school choice. Watch Wishkub’s story: Free Exchange Podcast Common-sense Healthcare Reforms for Wisconsin (Part I) Despite promises from elected officials that they could provide affordable health insurance and contain medical costs, the price of healthcare just keeps rising. Fortunately, there are free-market solutions that Wisconsin policymakers could adopt that would give patients and doctors greater autonomy and drive down costs, according to Dan Sem, vice provost for research and innovation, and a professor of business and of pharmaceutical sciences at Concordia University Wisconsin. Sem is the coauthor of Common-sense Healthcare Reforms for Wisconsin, a report that appears in the Badger Institute’s Mandate for Madison. Listen in School Funding Gov. Tony Evers’ education funding plan “appears to be largely more of the same with some targeted funds at special education. After surprisingly vetoing bills on reading improvement last year, a bit unexpected that there are not more resources aimed at improving not only the low proficiency rates, but the nation's worst racial gaps in the country.” Badger Institute education consultant Jim Bender, Where Tony Evers, Tim Michels stand on funding for K-12 schools On the Air Badger Institute Policy Analyst Patrick McIlheran was a guest on the Vicki McKenna Show where he discussed his latest Viewpoint What else are they wrong about?, an analysis of Wisconsin students’ performance on the latest national report card and why the public-education technocracy that so heavily contributed to the poor results should not be trusted with monopoly power over children. Listen (segment begins around 58:32) At a Glance Weekly Survey: Would you prefer a doctor-patient relationship free from the involvement of insurance companies and large hospital systems? Answer below! Yes No Last Week’s Results What We’re Reading RealClear Policy: Occupational Licensing: Taking the Shears to the American Dream Foundation for Government Accountability: Stopping the Medicaid Madness: How Congress and States Can Start Salvaging Some Program Integrity Associated Press: Massive learning setbacks show COVID’s sweeping toll on kids Power the Future: Inflation By Design Invest in the Badger Institute For 35 years, the Badger Institute, formerly known as the Wisconsin Policy Research Institute (WPRI), has been at the forefront of the fight for school choice, right to work, welfare reform, tax restructuring, limited government, civil society and so much more. If you appreciate the Institute’s legacy and want to support free markets, opportunity and prosperity, please consider donating $35, $350 or $3,500 today. Your support will help the Institute continue to advocate for conservative principles for the next 35 years – and beyond! 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