Soglin says new national tax code could hurt Madison
Mayor Paul Soglin plans to officially announce his candidacy for governor next week, entering a crowded field of Democratic hopefuls.Image By: Jon Yoon
When Congress rewrites the tax code, hundreds of thousands of Wisconsin residents could see higher taxes and lower home values, but Mayor Paul Soglin says cities could take the hardest hit.
In a press conference Wednesday morning, Soglin discussed the effects of eliminating the state and local tax deduction, a possible move for Congressional Republicans as they vote on a proposal next week.
The state and local tax deduction is claimed by taxpayers across the spectrum. In Wisconsin, 32 percent of taxpayers write in this deduction, paying an average of $3,551 less each year.
Without it, local government will face consequences in areas such as education, infrastructure, emergency response and more, according to city officials.
“What is happening in the House of Representatives is an effort to end the tax deductions in terms of interests payments on mortgages and property taxes,” Soglin said. “Wisconsin will be one of the hardest hit states in the country because we rely so heavily to fund our schools, cities and our counties utilizing the property tax.”
Without the deduction, home sales and values will decline, Soglin said. That could ultimately hurt thousands as the tax base diminishes, he added.
Soglin called on the Madison community to contact Congressional Republicans Jim Sensenbrenner and Paul Ryan about the deduction. Some say the mayor — who is considering a bid for governor next year — could be focusing on national politics to prepare for a possible campaign.Subscribe to The Daily Cardinal Newsletter