Tax Shifts Provide Little Hope for Taxpayers
Lasee’s Notes
Here we go again.
Just a few short years ago, the Governor’s special committee on school finance floated the idea of expanding the sales tax to help fund schools. At that time 60% of the people in the state opposed the idea because they realized that this isn’t really about property tax relief. It’s just another way to get more money from all of us.
Less than two weeks after the Democrats took over control of the State Senate, Sen. John Erpenbach (Democrat from Madison) is expected to unveil a proposal this week that will increase sales taxes by nearly $4 billion ($4,000,000,000). Erpenbach’s plan will revoke most current sales tax exemptions on goods and services except those that are, in his words, “necessities of life.” He wants to use that money to pay for schools and take schools off property taxes.
According to Erpenbach, those necessities that will NOT be taxed are food, prescription drugs, health care services, and agricultural products.
Everything else from haircuts to dog grooming could be taxed under Erpenbach’s proposal. That includes gas and heating fuels, attorney fees, computer services, dance lessons, and even admission to high school sporting events. All of these things could be taxed if Erpenbach has his way. As a result, we would all pay more for the goods and services we purchase. In return we might pay a little less in property taxes.
Erpenbach’s plan is NOT tax relief. At best it is a tax shift. At worst (the most likely scenario) it is a TAX INCREASE.
To put this in perspective let’s say you or someone you know gets a divorce. Under our current system, the legal fees you pay your attorneys are not taxed. Neither is the fee you will likely pay an accountant to figure out your finances, the moving company you pay to move your stuff, or the realtor’s fee you pay to sell your house. Under Erpenbach’s plan you will pay 5% (5.5% in most counties) more for all of these services. In situations like this that extra five percent could cost thousands of extra dollars. In addition to being “nickeled and dimed” everyday with every purchase, with every service.
When our government forces us to pay taxes for a service or a product that we currently don’t pay taxes on, it is a tax increase. Will we really lower another tax by the same amount?
That’s the problem we need to fix. Unfortunately, without a constitutional constraint (the Taxpayer Bill of Rights) there is no way for the taxpayers of this state to trust their elected officials to fix our spending and taxing epidemic.
My answer is NOT sending more and more and more of our money to the government.
We need to prevent our government from freely reaching into our pockets and taking more without asking. And we also need to let our economy grow free of government intrusion, excessive taxation, and over regulation. Then and only then will we, the taxpayers, have any control over how much of OUR money government spends.
The question is where does Governor Doyle stand on all of this? He did NOT support the Democrats H.O.P.E plan last session that would have increased sales taxes to lower property taxes. Now that he has been elected for another term will he take the same stand?
Another question that we need to ask about this proposal is: what will the effect be on local control? Under our current system if a school wants more money they have to ask their taxpayers first before they offer another French class, build a new school or add more personnel. The point is that the taxpayers have the final say.
Under Erpenbach’s proposal will the Department of Public Instruction or another government agency be given that power? So every time a school needs more of our money will they have to call Madison and beg? Our current referendum system is working (as I’ve outlined in past columns). Do you really want to give our local control of schools and school budgets to a state agency? Under Senator Erpenbach’s proposal will we end up with one large school district for the whole state controlled by Madison?
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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.
Here we go again.
Just a few short years ago, the Governor’s special committee on school finance floated the idea of expanding the sales tax to help fund schools. At that time 60% of the people in the state opposed the idea because they realized that this isn’t really about property tax relief. It’s just another way to get more money from all of us.
Less than two weeks after the Democrats took over control of the State Senate, Sen. John Erpenbach (Democrat from Madison) is expected to unveil a proposal this week that will increase sales taxes by nearly $4 billion ($4,000,000,000). Erpenbach’s plan will revoke most current sales tax exemptions on goods and services except those that are, in his words, “necessities of life.” He wants to use that money to pay for schools and take schools off property taxes.
According to Erpenbach, those necessities that will NOT be taxed are food, prescription drugs, health care services, and agricultural products.
Everything else from haircuts to dog grooming could be taxed under Erpenbach’s proposal. That includes gas and heating fuels, attorney fees, computer services, dance lessons, and even admission to high school sporting events. All of these things could be taxed if Erpenbach has his way. As a result, we would all pay more for the goods and services we purchase. In return we might pay a little less in property taxes.
Erpenbach’s plan is NOT tax relief. At best it is a tax shift. At worst (the most likely scenario) it is a TAX INCREASE.
To put this in perspective let’s say you or someone you know gets a divorce. Under our current system, the legal fees you pay your attorneys are not taxed. Neither is the fee you will likely pay an accountant to figure out your finances, the moving company you pay to move your stuff, or the realtor’s fee you pay to sell your house. Under Erpenbach’s plan you will pay 5% (5.5% in most counties) more for all of these services. In situations like this that extra five percent could cost thousands of extra dollars. In addition to being “nickeled and dimed” everyday with every purchase, with every service.
When our government forces us to pay taxes for a service or a product that we currently don’t pay taxes on, it is a tax increase. Will we really lower another tax by the same amount?
That’s the problem we need to fix. Unfortunately, without a constitutional constraint (the Taxpayer Bill of Rights) there is no way for the taxpayers of this state to trust their elected officials to fix our spending and taxing epidemic.
My answer is NOT sending more and more and more of our money to the government.
We need to prevent our government from freely reaching into our pockets and taking more without asking. And we also need to let our economy grow free of government intrusion, excessive taxation, and over regulation. Then and only then will we, the taxpayers, have any control over how much of OUR money government spends.
The question is where does Governor Doyle stand on all of this? He did NOT support the Democrats H.O.P.E plan last session that would have increased sales taxes to lower property taxes. Now that he has been elected for another term will he take the same stand?
Another question that we need to ask about this proposal is: what will the effect be on local control? Under our current system if a school wants more money they have to ask their taxpayers first before they offer another French class, build a new school or add more personnel. The point is that the taxpayers have the final say.
Under Erpenbach’s proposal will the Department of Public Instruction or another government agency be given that power? So every time a school needs more of our money will they have to call Madison and beg? Our current referendum system is working (as I’ve outlined in past columns). Do you really want to give our local control of schools and school budgets to a state agency? Under Senator Erpenbach’s proposal will we end up with one large school district for the whole state controlled by Madison?
------------------------------------------------------------------------------------
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 | 1:32 PM
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