Day 8: Capital Gains Tax Increase

Not sure if anyone is going to have the opportunity to claim a capital gain this year, but I'm very concerned about the long term impact of this tax hike. It's a massive $180 million price tag. Horrible timing.

-Ted

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(Madison)…State Senator Ted Kanavas (R-Brookfield), as part of his April tax Awareness Campaign to raise the profile of Governor Doyle’s and the Democrat’s tax and spend proposals, today focused on the decrease of the capital gains exclusion in the 2009-2011 biennial budget.

“This is backwards, shortsighted and wrong,” said Kanavas. “We ought to be encouraging people in our state to make money, not penalizing them when they do. How many Wisconsinites have lost real money in this recession who Governor Doyle now wants to hit with higher taxes if they start to make it back? ”

The 2009-2011 budget proposal includes a provision that would increase the percentage of taxable capital gains by 20% by reducing the deductable amount to 40%. At present, Wisconsin investors can subtract 60% of their capital gains for purposes of calculating income subject to the state income tax. The result would be the assessment of $180 million in new taxes over the two year budget cycle.

“The goal of Governor Doyle’s proposed budget might just be to single-handedly prolong the recession in Wisconsin and chase people out of the state,” said Kanavas.

This release is part of Senator Kanavas’ April Tax Awareness Campaign designed to educate Wisconsinites about the $1.7 billion of in new taxes and fees contained in the Democrat’s 2009-2011 budget.

To learn more about Senator Kanavas’ April tax awareness campaign, Senator Kanavas’ initiatives and the 33rd Senate District please visit his website at: http://www./senatorkanavas.com.