In the news: Nesslein offers take for income tax story

Associate Prof. Tom Nesslein provided an economist’s perspective Wednesday (Dec. 18) on Gov. Walker’s idea to potentially eliminate state income tax, an idea he discussed during a Wednesday news conference. “States cannot run a budget deficit,” Nesslein told WFRV, Channel 5’s Jenn Sullivan, “so if they eliminate one revenue source and keep the same level of spending then they have to raise taxes elsewhere.” The difference — Wisconsin generated $6.8 billion in personal income taxes in 2012, the story says — would be difficult to make up, added Nesslein, Urban and Regional Studies. Raising the sales tax might be one way to compensate. Full story.