Federal Reserve Study Predicts Wisconsin Will Lose About 10,000 Jobs with Massive Sales Tax Hike

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Recently released job numbers show that Wisconsin ranks 37th in the nation in job growth under Scott Walker and although this is pretty dismal news, its a marked improvement over where Walker has spent most his time as Governor:  In dead last place.

Well folks, 'ol Walker may have found a way to get Wisconsin back in last place!

If Governor Scott Walker follows through with his plan to eliminate the state income tax and shift the tax burden to the sales tax, the Wisconsin Budget Project estimates this would raise Wisconsin's sales tax to 13.5%-- an eight percent increase in most counties.   A recently published study by researchers at the Federal Reserve Board of Governors states that every one percentage point increase in the sales tax results in a .3% decrease in employment in counties that are adjacent to states with lower sales taxes:

"Our results show that sales tax changes have a detrimental effect on employment, payroll, and hiring in border areas"

Considering 412,103 people living in counties that border other states, Wisconsin increasing its sales tax by eight percentage points would result in 9,891 people losing their jobs, using the Federal Reserve's formula.

Amazing.  Instead of creating jobs, Walker has once again figured out a way to shoot Wisconsin in the foot and lose jobs