School choice insights, reconnecting men to work, just the tax facts Celebrating 35 years of advancing freedom in Wisconsin Happy Thanksgiving! “I do therefore invite my fellow citizens in every part of the United States … to set apart and observe the last Thursday of November next, as a day of Thanksgiving and Praise to our beneficent Father who dwelleth in the Heavens. And I recommend to them that while offering up the ascriptions justly due to Him for such singular deliverances and blessings, they do also, with humble penitence for our national perverseness and disobedience, commend to His tender care all those who have become widows, orphans, mourners or sufferers in the lamentable civil strife in which we are unavoidably engaged, and fervently implore the interposition of the Almighty Hand to heal the wounds of the nation and to restore it as soon as may be consistent with the Divine purposes to the full enjoyment of peace, harmony, tranquility and Union.” – A Proclamation of Thanksgiving issued by President Abraham Lincoln, October 3, 1863 From the Capitol By Michael Jahr The top two Republican legislative leaders say they are optimistic they can work with Gov. Tony Evers in the coming session to pass structural tax relief, expand school choice and advance other policy reforms that will benefit Wisconsinites. Moving Wisconsin from a progressive, four-bracket personal income tax to a flat tax will be a top priority, House Speaker Robin Vos and Senate Majority Leader Devin LeMahieu told attendees at a Tuesday luncheon in Madison hosted by WisPolitics. A large projected budget surplus increases the likelihood of meaningful compromise and trade-offs, they said. The Wisconsin Department of Administration this week forecast that the state will have a nearly $6.6 billion budget surplus at the end of the fiscal year on June 30, 2023. “It’s very exciting that we can make transformational tax changes in Wisconsin, make us more competitive than our neighboring states, hopefully keep businesses in the state, get our neighbors into Wisconsin to enjoy those benefits,” said LeMahieu. “That sets us up well while also giving us money to invest in core priorities like K-12 (education), roads, local government and things like that.” LeMahieu said he would prioritize eliminating the personal property tax and adjusting the income tax brackets in a way that would give all taxpayers a tax cut. “We definitely need to drive down our top rates,” he added. “We’re sort of an island with our top rate here in Wisconsin. We need to drive that down and beat our neighbors.” Wisconsin’s top marginal rate of 7.65% is among the highest in the country. Fourteen states already have or are in the process of moving toward a flat tax — including Illinois, Michigan, Indiana and Iowa. Twenty-five states have lower top marginal individual income tax rates now than they did in 2012. Nine states have no individual income tax at all. People leaving for states with lower tax burdens is a “huge problem demographically for Wisconsin,” said Vos. “We know that when somebody moves and leaves Wisconsin as a resident, rarely do they come back. “I feel like there are areas of potential agreement with Democrats,” he said. “People want us to find ways to work together. I don’t know how any Democrat can say (that) fixing our tax code — so that we keep younger people here instead of moving away and successful folks instead of retiring somewhere else — should not be a goal for Wisconsin.” The top priority for Assembly Republicans will be adopting long-term, permanent tax cuts while funding core services, Vos told the audience. LeMahieu added that “once-in-a-generation” tax reform would benefit Wisconsin should the country slide into a recession. Another area for compromise, according to both leaders, would be increasing funding for public schools while expanding school choice. Vos made the case for universal school choice, including unrestricted open enrollment between public schools, the elimination of income limits for participation in choice programs and addressing funding disparities between children who attend public schools and those in choice schools. Other priorities mentioned by LeMahieu and Vos included improving Wisconsin roads, addressing the district attorney shortage and restoring work requirements for those benefitting from government safety net programs. Research and recommendations regarding these issues — and several others — were part of the Badger Institute’s recently released Mandate for Madison. Free Exchange Podcast Wisconsin’s School Choice Moment Following November’s gubernatorial election, the tone and tenor of discourse in Madison is markedly different than it was four years ago. The Badger State is looking at a budget surplus of billions of dollars, and both the Legislature and governor’s office have great incentive to improve the lives of Wisconsin families by working together for meaningful solutions. School choice guru Jim Bender joins Badger Institute President Mike Nichols to discuss these post-election dynamics in the Capitol, including opportunities to invest in student success through accessible and equitable school choice funding in the next state budget cycle. Listen in Real-time Policy Solutions Milwaukee law enforcement this week reported that the city surpassed its previous record murder rate, with a total of 197 homicides so far in 2022. For policymakers looking for solutions, we’ve addressed the crime trends, presented ways to improve policing and offered recommendations for achieving swifter justice. Estimates suggest that 1 million Wisconsinites will travel by road to celebrate Thanksgiving with family and friends in 2022. To ensure we can do the same in coming years, we’ve identified ways to future-proof Wisconsin’s highway funding. Video Reconnecting Men “What’s in the family — or not in the family — inevitably spills out into the neighborhoods, spreading instability, crime and chaos. The pessimism and purposelessness, the apathy and selfishness, disconnects people from their larger community.” — Eloise Anderson, For a New Civil Society Amid mounting pressures of pessimism and instability, communities must band together and strengthen the bonds of civil society. Men play a crucial role in that kind of turnabout, but many often find themselves disconnected from their communities and the social engines that drive lasting change. Addressing this challenge, Eloise Anderson outlines how to re-engage disaffected men for the good of society — economically, occupationally and otherwise. To learn more, read Anderson’s full report, part of our Mandate for Madison. On the Air Mark Lisheron joins WCLO talk show host Tim Bremel to discuss How “Free” Federal Money Costs Wisconsinites Control Over Their Government. The segment begins around the 8:30 mark. Listen  Tax Reform Flat Tax Fact Sheet The Badger Institute has a growing library of one-pagers highlighting facts, data, trends and recommendations on a variety of policy issues. Over the past two years, a wave of tax reform has swept the country, with a historic number of states enacting laws to improve tax competitiveness. In 2021, Wisconsin was among 13 states to enact laws reducing individual or corporate income tax rates, and as of this writing, 11 states have enacted legislation in 2022 to reduce income tax rates. Six of these tax-cutting states sit within a 200-mile radius of Wisconsin, creating an intensely competitive regional tax environment. In 2019, 2020 and 2021, Wisconsin reduced its second-highest individual income tax rate once and its lowest two rates twice, targeting tax relief toward low- and middle-income taxpayers. But Wisconsin’s top marginal individual income tax rate—which applies to approximately two-thirds of pass-through business income—has been left unchanged for a decade, and the state income tax landscape has grown dramatically more competitive during that time. In fact, 25 states have lower top marginal individual income tax rates now than they did in 2012. As of 2023, when Iowa’s top rate drops to 6 percent (with further reductions to 3.9 percent), Minnesota and Wisconsin will be left with the highest top marginal individual income tax rates of all the non-coastal states stretching from California to New York. Read more The work of the Badger Institute is funded solely through the generous donations of people like you. Please consider making a gift between now and Giving Tuesday to take part in the global giving phenomenon — and to advance the cause of free markets, opportunity and prosperity right here in Wisconsin. Weekly Survey: Are you thankful for the civil and religious liberty that we’ve inherited? Answer below! Yes No Last Week’s Results What We’re Reading Foundation for Economic Education: Our First Thanksgiving Heritage Foundation: Thanksgiving and the American Wisdom of Carving Out a Day for Gratitude Rabbi Meir Soloveichik: Thanksgiving Was Born From America’s Struggles (Paywall) George Washington: Thanksgiving Proclamation of 1789 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! The Institute never has, and never will, accept government funding. We gratefully welcome your online donation or email Angela Smith, Vice President of Development. The Badger Institute is a 501(c)(3) tax-exempt nonprofit organization funded solely by the generosity of foundations, companies and individuals. Support Freedom   Top Picks is our weekly update. To receive more frequent content from the Badger Institute’s experts – or share with us your policy areas of interest – CLICK HERE Badger Institute | 700 W Virginia St, Suite 301, Milwaukee, WI 53204 www.badgerinstitute.org Unsubscribe [email protected] Update Profile | Constant Contact Data Notice Sent by [email protected] in collaboration with Try email marketing for free today!