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Tax Issues Policy Recommendations

Provide targeted property tax relief by increasing the Homestead Tax Credit and indexing it for inflation – The Homestead tax credit provides well-targeted property tax relief for low-income homeowners and renters, but unlike other parts of the tax code it is not indexed for inflation.  As a result, it has been substantially reduced by inflation over the last 15 years.  The maximum credit should be increased and the formula for calculating the credit should be indexed for inflation. For more information on this policy change, see "Ending the Erosion of the Homestead Credit."

Ensure adequate revenue to maintain Wisconsin’s strong public structures – In light of the state’s continuing fiscal challenges, we need to avoid putting the budget further in the hole by creating large new tax breaks, such as the elimination of taxes on capital gains or estates.  The state also needs to allow local property taxes to grow at a rate that will maintain the quality of our schools and local services.

Reject efforts to establish constitutional limits on taxes and spending– Wisconsin should reject efforts to establish constitutional limits on taxes and spending, modeled after the so-called Taxpayer Bill of Rights (TABOR) in Colorado.  Fiscal policy decisions should be made by elected officials, who are accountable to the public, rather than spelled out in inflexible rules in the state constitution.