Vuk­mir sup­ports elim­i­nat­ing tax de­duc­tions

U.S. Se­nate can­di­date signs open let­ter to stop lo­cal, state write-offs

Milwaukee Journal Sentinel - - MILWAUKEE WISCONSIN - Bill Glauber

When it comes to tax re­form, Repub­li­can U.S. Se­nate can­di­dates Leah Vuk­mir and Kevin Ni­chol­son usu­ally stick with the ba­sics.

They both back Repub­li­can-led ef­forts to over­haul the tax code, but gen­er­ally avoid get­ting into the deep de­tails of leg­is­la­tion that is still be­ing hashed out in Congress.

But there is one im­por­tant facet of tax pol­icy that Vuk­mir, a state sen­a­tor from Brook­field, has taken a strong stand on.

She sup­ports end­ing the state and lo­cal tax de­duc­tion, known as SALT.

Vuk­mir took that stance as a mem­ber of the Amer­i­can Leg­isla­tive Ex­change Coun­cil, the cor­po­rate-backed group that brings to­gether con­ser­va­tive law­mak­ers from across the coun­try.

Vuk­mir, a mem­ber of the group’s board of di­rec­tors, was one among 140 law­mak­ers from 36 states to sign on to ALEC’s open let­ter to Congress call­ing for an elim­i­na­tion of the SALT de­duc­tion.

The let­ter, sent last month, said: “Elim­i­nat­ing the state and lo­cal tax (SALT) de­duc­tion would pro­vide up­wards of $1.5 tril­lion over the next decade to im­ple­ment broad-based tax cuts na­tion­ally.”

The let­ter said, “Thanks to SALT, in­come earn­ers and busi­nesses in lower-taxed states pay a higher ef­fec­tive fed­eral in­come tax rate than their high-taxed coun­ter­parts since they deduct less from their tax­able in­come. In ef­fect, cit­i­zens in more fis­cally re­spon­si­ble re­gions sub­si­dize the malfea­sance of politi­cians thou­sands of miles away.”

Bills in the House and Se­nate dif­fer on the is­sue. In a bid to lure votes from GOP mem­bers from high tax states like New York, Cal­i­for­nia, Illi­nois, Penn­syl­va­nia and New Jer­sey, the House bill would al­low a de­duc­tion for up to $10,000 on lo­cal prop­erty taxes. The House bill ends de­duc­tions for state in­come taxes.

The Se­nate bill elim­i­nates SALT. Vuk­mir “has not changed her opin­ion on elim­i­nat­ing the state and lo­cal tax de­duc­tion,” said cam­paign spokesman Mat­tias Gugel.

“Sen­a­tor Vuk­mir is closely fol­low­ing tax re­form move through both houses of Congress. She’s glad to see Con­gres­sional Repub­li­cans and Pres­i­dent Trump work­ing to­gether to stream­line our tax code, pro­vide much-needed re­lief for our mid­dle class and boost the econ­omy,” Gugel said.

Both the House and Se­nate bills call for cut­ting the cor­po­rate tax rate to 20%, The House bill would cut the cor­po­rate rate next year while the Se­nate bill de­lays im­ple­men­ta­tion to 2019.

“While she knows there will be changes over the next sev­eral days, the sen­a­tor is dis­ap­pointed that the Se­nate plan de­lays when the cor­po­rate tax cuts go into ef­fect,” Gugel said. “To re­main com­pet­i­tive in a world­wide mar­ket, she be­lieves Amer­ica must lower our cor­po­rate tax rate as soon as pos­si­ble to spur the econ­omy and en­sure jobs don’t move over­seas.”

For his part, Ni­chol­son, a De­lafield busi­ness­man, is sup­port­ive of the tax over­haul.

“Kevin sup­ports Pres­i­dent Trump’s call for bold tax re­form and wel­comes the in­tro­duc­tion of tax re­form in the House and Se­nate as the first steps in over­haul­ing our overly com­pli­cated and un­com­pet­i­tive tax sys­tem,” said Ni­chol­son spokesman, Michael Antonopou­los.

“As tax re­form moves for­ward, Kevin wants to make sure the fi­nal pack­age pro­vides tax re­lief for ev­ery Wis­con­sin tax­payer and busi­ness,” he said. “He be­lieves tax re­form ab­so­lutely must be done this year be­cause the tax code is in des­per­ate need of an over­haul that spurs growth.”

Ni­chol­son and Vuk­mir are the only an­nounced Repub­li­cans run­ning in the Aug., 2018 pri­mary. They’re bid­ding to take on Demo­cratic U.S. Sen. Tammy Bald­win.

Last month, Bald­win is­sued a call to re­tain the state and lo­cal tax de­duc­tion.

She said one-third of Wis­con­sin tax­pay­ers cur­rently claim the de­duc­tion and said its re­peal “could lead to a tax in­crease for more than 30% of the tax­pay­ers in my state. Across Wis­con­sin, the de­duc­tion loss would to­tal about $10 bil­lion that Wis­con­sinites would no longer be able to deduct from their fed­eral taxes.”

Kevin Ni­chol­son and Leah Vuk­mir

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.