A Wednesday report shows the income gap between Wisconsin's rich and poor is increasing, with the disparity worse than it was 20 years ago.
Two non-profit groups, the Wisconsin Council on Children and Families and the Center on Wisconsin Strategy, conducted the study.
Inequality is a political problem,"" COWS Director Joel Rogers said. ""It makes fewer people willing to help pay for critical public goods, like education, which further increases inequality.""
The report stated Wisconsin is the 11th ranked state in terms of equal distribution of incomes, but was ranked fifth in the 1980s.
Increasing the minimum wage in the state and reforming the tax code to lessen the burden on lower-income workers, would reverse the current trends, according to the report.
Reforming the unemployment system in the state and advancing public awareness of BadgerCare Plus, the state health insurance program for low-income workers, would also help, the report stated.
Jon Peacock, WCCF research director, said the main reason for the increase in disparity is the growing global economy, which has led to a decrease in manufacturing jobs in the state.
Peacock said globalization also increased poverty overall in the state. He said more training for low-income workers, combined with other proposals, would help reverse the current trends in a short amount of time.
However, the proposals advocated in the report are likely to face opposition in the state Legislature. Leaders in the Republican-controlled Assembly oppose raising the minimum wage and criticized Gov. Jim Doyle when he proposed it in his January economic initiatives.
Republicans also opposed increasing the Homestead Tax Credit for low-income families in the last session, which, according to Peacock, has not been adjusted to keep up with inflation.
Peacock said the recent problems in the state budget are likely to put pressure on ""safety net"" programs for poor residents.
