In an effort to combat the rising unemployment rate, a bill introduced this week by Rep. Cory Mason, D-Racine, aims to increase the income tax on those making over $1 million per year by 1 percent.
The proposed plan — The Wisconsin Job Initiative — will give those new funds to the University of Wisconsin System and Wisconsin technical colleges. Legislators hope it will allow schools to expand, as well as create more financial aid for students in need, permitting more people to take classes and receive degrees.
“Many people need jobs, and many employers are looking for people to fill positions, but many of those positions require specialized degrees,” Mason said. “This creates an opportunity to expand technical colleges and higher education and allows people to compete for 21st-century jobs.”
The goal of this bill is not only to expand higher education but also to acquire federally matched funds through a $12 billion proposal from the federal government.
Mason estimates the bill could raise $145 million and could educate up to 40,000 workers. He said it could also shorten the financial aid waiting list, currently holding about 21,000 students in the UW System.
According to Mike Mikalsen, a spokesperson for Rep. Stephen Nass, R-Whitewater, Republicans agree creating more jobs and expanding higher education is necessary, but many do not believe raising taxes will provide the right solution.
“The Republicans are not going to support a tax increase at this time, but there are other places in the state budget we can shift funds from,” Mikalsen said. “The net result of this tax increase will be that more jobs will be lost because it will cause more individuals to hold investments.”
Jim Bender, spokesperson for Assembly Minority Leader Jeff Fitzgerald, R-Horicon, agreed that taxation is not the solution.
“We’re a very high taxed state, so we wouldn’t need all this job enhancement if we didn’t have all this tax increase,” Bender said. “We’re doing one thing that’s an admirable goal, but raising taxes counters the goal.”
Mason said he remains optimistic, adding a small tax increase on the wealthy would largely increase the state’s job-training capacity.
The bill is currently out for co-sponsorship, and the outcome is expected to be decided sometime later this fall.
