A new report suggests tax increases need to be a part of plans to close a projected $5 billion state budget hole.
As lawmakers begin looking at options to reduce the deficit, Jack Norman with the Institute for Wisconsin's Future says the need for more revenue should be a top concern. He says sales tax, income tax, and business tax increases should all be considered. He says small increases would have a minimal impact on individuals, but would have a combined impact that could really help the state.
Norman says cuts alone are not going to fix this mess because there's just not enough stuff to trim out of the budget. Also, he says reducing state services makes it even harder for residents to weather tough economic times.
In light of the weak national economy, Norman admits lawmakers will be hesitant to bring up tax increases. However, he says much of the public recognizes the need to protect what's already in place.