*** UPDATED x1 *** Rauner’s argument actually makes the case for a graduated income tax
Monday, May 7, 2018
Yes, that’s the published tax rate (the tax rate actually applies to income above $25,891, but it’s kinda close enough, although the important thing to remember is that only income earned above that rate is taxed at a higher rate, which the governor really messes up here).
But if you use a tax payment calculator, you’ll see that a single Minnesotan making $25,000 a year will owe just $797.15 in state income taxes. That’s an effective tax rate of 3.2 percent. (At 26,000, the effective rate is 3.27 percent.)
By the way, a single Wisconsin resident making $50,000 a year would pay a 3.2 percent effective income tax rate. In Iowa, that same person would pay a 4.7 percent effective income tax rate (before its proposed tax cut).
How can they afford to do that? By making higher income earners pay more.
The CTBA should send the governor a dozen roses.
*** UPDATE *** Let’s go back to the governor’s interview with WGIL…
He didn’t mention an important point…