High Taxes Weren't Always a Problem
Lasee’s Notes
Today, many of us agree that high taxes are a problem in Wisconsin. Our taxes are chasing many of our best and brightest out. It also is making it difficult to get the best and brightest from elsewhere to come here, making it difficult for businesses to create jobs and to stay here. (A recent study from the Tax Foundation that ranked Wisconsin the 12th worst state for business taxes).
Many state employers are competing with businesses in other states and nations that have lower taxes and more favorable regulations which enable them to produce their goods and services at a lower price. According to the Wisconsin Taxpayers Alliance, we have already lost nearly $5 billion in net worth from businesses and high net worth individuals moving out of state.
Wisconsin has NOT always been a high taxing state. In fact, in 1961 (45 years ago) Wisconsin’s taxes ranked 18th highest in the nation. And for many decades prior, our taxing rates were in the middle of the pack.
Following record increases in the sales and income tax in order to provide property tax relief -- the Badger state’s low taxing trend ended abruptly in 1964 when we became the highest taxed state in the nation. Wisconsin has ranked among the top ten taxing states nearly every year since. In fact, we have been among the top five most taxed states 25 out of the last 40 years.
Why have our taxes continued to climb? Our high tax rates can be directly attributed to decades of overspending, over taxing, and over borrowing by state and local governments.
The problem is that unlike most states which choose to spend more on one government program and less on another (more on higher education and less on prisons or more on Medicare and less on roads) in Wisconsin we spend more on nearly everything government related. If a state does it, then Wisconsin does it, and it is likely we spend more on it than most other states.
Instead of prioritizing our spending, we spend more on nearly every government service offered. And we offer more government services than most other states.
For instance, we are one of the top three states for rails and trails. I like them. But, do we have to lead the nation?
What causes this?
Government officials cause this. Many of them support the big government approach and that is why they serve in government. They love to do evermore with their government. And the more government we have, the more services offered, the more useful and necessary many of them feel.
That is why many people in government oppose the Taxpayer Bill of Rights. They know that if they had to ASK the voters permission before they increased spending beyond a reasonable level, built the next great public project or start the next program, the answer might be no. That is a word they do NOT want to hear. Then to top it off they can’t just go ahead and do it anyway.
What can we do?
There is hope. A recent poll from CNN found that a majority of Americans believe that our government is doing too much.
When asked about the role of government, 54% of respondents said that our government is “doing too many things that should be left to individuals and businesses.”
That is the problem we face in Wisconsin. Our government is doing more than we can afford. Elected officials haven’t been able to change this. Perhaps it is time that our constitution does.
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Lasee’s Notes is a weekly column by Representative Frank Lasee, 2nd Assembly District, covering events in the Legislature and statewide.
Today, many of us agree that high taxes are a problem in Wisconsin. Our taxes are chasing many of our best and brightest out. It also is making it difficult to get the best and brightest from elsewhere to come here, making it difficult for businesses to create jobs and to stay here. (A recent study from the Tax Foundation that ranked Wisconsin the 12th worst state for business taxes).
Many state employers are competing with businesses in other states and nations that have lower taxes and more favorable regulations which enable them to produce their goods and services at a lower price. According to the Wisconsin Taxpayers Alliance, we have already lost nearly $5 billion in net worth from businesses and high net worth individuals moving out of state.
Wisconsin has NOT always been a high taxing state. In fact, in 1961 (45 years ago) Wisconsin’s taxes ranked 18th highest in the nation. And for many decades prior, our taxing rates were in the middle of the pack.
Following record increases in the sales and income tax in order to provide property tax relief -- the Badger state’s low taxing trend ended abruptly in 1964 when we became the highest taxed state in the nation. Wisconsin has ranked among the top ten taxing states nearly every year since. In fact, we have been among the top five most taxed states 25 out of the last 40 years.
Why have our taxes continued to climb? Our high tax rates can be directly attributed to decades of overspending, over taxing, and over borrowing by state and local governments.
The problem is that unlike most states which choose to spend more on one government program and less on another (more on higher education and less on prisons or more on Medicare and less on roads) in Wisconsin we spend more on nearly everything government related. If a state does it, then Wisconsin does it, and it is likely we spend more on it than most other states.
Instead of prioritizing our spending, we spend more on nearly every government service offered. And we offer more government services than most other states.
For instance, we are one of the top three states for rails and trails. I like them. But, do we have to lead the nation?
What causes this?
Government officials cause this. Many of them support the big government approach and that is why they serve in government. They love to do evermore with their government. And the more government we have, the more services offered, the more useful and necessary many of them feel.
That is why many people in government oppose the Taxpayer Bill of Rights. They know that if they had to ASK the voters permission before they increased spending beyond a reasonable level, built the next great public project or start the next program, the answer might be no. That is a word they do NOT want to hear. Then to top it off they can’t just go ahead and do it anyway.
What can we do?
There is hope. A recent poll from CNN found that a majority of Americans believe that our government is doing too much.
When asked about the role of government, 54% of respondents said that our government is “doing too many things that should be left to individuals and businesses.”
That is the problem we face in Wisconsin. Our government is doing more than we can afford. Elected officials haven’t been able to change this. Perhaps it is time that our constitution does.
-------------------------------------------------------------------------------------
Lasee’s Notes is a weekly column by Representative Frank Lasee, 2nd Assembly District, covering events in the Legislature and statewide.
posted by John Q Cheesehead | 9:20 PM
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