Economist: Proposal Could Lead To Wyoming Personal Income Tax
An economist with Americans For Tax Reform says he has "no doubt'' that a proposal for a corporate state income tax that he expects to be put forward in the upcoming 2020 session of the Wyoming Legislature could easily lead to a statewide personal income tax
Sven Larson says the income tax proposal would apply to companies with over 100 shareholders, levying a 7 percent income tax. A bill that would have imposed such a tax for retailers and some other businesses was put forward in the 2019 Wyoming Legislature but failed to wIn final approval.
Larson says a similar bill will be proposed again, except that it will be broadened.so that it is not restricted only to a few industries, bit rather all businesses with over 100 shareholders. he says the bill is now being labeled as a "tax recapture" proposal but is essentially the latest version of a corporate income tax.
He predicts that if it does become law, the 100 shareholder limit will go away at some point and that it will then be a simple matter to extend the 7 percent tax to personal income earners. ''Absolutely, I have no doubt" Larson says of that possibility. He says the way the bill is written, all that would be needed to impose a personal income tax is to add the ''1040" tax filers to one page of the bill.
He says the argument could be used that ''Well, the big corporations are paying their fair share. It's time for you as well." A proposal to consider a personal income tax put forward by Rep. Cathy Connolly (D-Albany County) got little traction. Wyoming is currently one of only 7 states that do not have a state income tax.
But with the state facing projected budget shortfalls of several hundred million dollars in coming years, some state lawmakers are saying Wyoming needs to look at ways to increase state revenues.
Larson made his comments on the ''Weekend in Wyoming" program on KGAB radio on Saturday.
The 2020 budget session fo the Wyoming Legislature will convene on Feb. 10.