Wisconsin Taxpayers Alliance Contradicts Republican Claims on Taxing and Spending

In the inbox was this press release from Representative Donna Seidel (D-Wausau):

According to the Wisconsin Taxpayers Alliance, taxpayer-funded spending increased by 7.6% and total spending increased by 3.5% in the 2011-13 State Budget.

“Throughout the budget process the Governor and his Republican allies in the Legislature claimed that their budget cut spending and did not raise taxes,” said Rep. Seidel (D – Wausau ). “Now the conservative-leaning Wisconsin Taxpayers Alliance is contradicting the Republican talking points about frugality and moderation. Their analysis also makes clear that contrary to Walker ’s rhetoric, the budget was balanced on the backs of middle-class families rather than through shared sacrifice.”

The Taxpayers Alliance joins many citizens, legislators, media outlets, government watchdog groups and the non-partisan Legislative Fiscal Bureau who have presented ample evidence contrary to the Republican’s spin.

The Taxpayers Alliance notes that the budget included two tax increases: the Earned Income Tax Credit, which affects working families; and the Homestead Tax Credit, which largely affects seniors. Conversely, the Taxpayers Alliance highlights tax cuts that primarily benefit the rich with new capital gains exclusions, as well as large, multi-state corporations by reopening several tax loopholes. The article also points out that a new, $128.7 million tax cut for businesses would “erase much of the income tax liability for affected firms.”

“It’s time for Governor Walker and the Republicans to be honest with Wisconsin citizens,” continued Seidel. “Regardless of their repeated assertions to the contrary, their budget increases spending; increases taxes on those that can least afford it; increases fees; continues the use of fund transfers and fund raids; and increases borrowing.”

“What’s even more disappointing is that when the Republicans chose to increase spending, it was not to fund Wisconsin priorities like public education and job training,” Seidel concluded. “Instead, Walker and the legislators who have rubberstamped his agenda spent nearly $2.3 billion so far this session on tax breaks for corporations and the super-rich.”