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Coalition recommends changes to Wisconsin taxes

By ASSOCIATED PRESS   Thursday, December 11, 2008 - 10:57 a.m.
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MADISON, Wis. (AP) — A coalition of Wisconsin business, labor and policy groups says in a new report that the state should consider reforming its tax structure to focus more on economic growth.

The idea is one of many included in the Wisconsin Way's Blueprint for Change report. The report will provide a basis for a series of meetings next year that will generate actual recommendations for policy makers and others.

The report suggests a tax shift that would reduce property and income taxes and rely more on sales taxes and user fees.

Members of the coalition include the state's biggest teachers union and groups representing local governments, road builders and real estate agents.

The report is the result of two years of town hall meetings.




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SuperDave
Dec 12, 2008 at 9:03 a.m.
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This reminds me of Proposal A, which was passed when I lived in Michigan about ten years ago. There were lots of pieces to it, but the main ones were: property taxes were cut (supposedly), and the sales tax was increased from 4% to 6%. If you looked at it when passed, and did the math (and there were little pro-formas in the paper for you to do so), it appeared to be a win for the taxpayer. But the problem is, the property tax cut was of course temporary, and the sales tax increase was permanent. So they traded a temporary decrease in a deductible tax, for a permanent increase in a non-deductible tax. And at the same time many school districts lost local control. Overall a lose-lose-lose proposition!

flowergirl
Dec 12, 2008 at 8:28 a.m.
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I was at one of these "town hall meetings". These groups that comprise this coalition have a clear cut agenda and the meeting was run to create the end result that they wanted. They packed the meeting with teachers' union members and other members of these groups and tried to shut out any dissent. These people have one goal-to raise your taxes. The meetings were a farce.

Unidentified
Dec 11, 2008 at 3:41 p.m.
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Sorry about the duplicate post, not sure what happened there.

Unidentified
Dec 11, 2008 at 3:40 p.m.
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There are several issues that hurt Wisconsin when this economy recovers. For one, it's not a right to work state. Secondly, the weather conditions here make logistics a nightmare. Thirdly, the weather here makes utility and exterior maintenance cost a nightmare. Lastly, the taxes are too high to entice businesses to move here. If you look at all the ares in the country with the highest growth and lowest unemployment rates, they typically all have one thing in common; low taxes. In a competitive global economy every aspect of a business must be looked at. As a result, companies have grown smarter over the last several years. Wisconsin can't rely on ambitious and blindly state loyal UW students alone to stimulate growth. If changes aren't made, Wisconsin will lag behind the rest of the nation as the economy recovers. Tourism won't get it done. There is very little offered in this state that can't be found in other states in that regard.

Unidentified
Dec 11, 2008 at 3:40 p.m.
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There are several issues that hurt Wisconsin when this economy recovers. For one, it's not a right to work state. Secondly, the weather conditions here make logistics a nightmare. Thirdly, the weather here makes utility and exterior maintenance cost a nightmare. Lastly, the taxes are too high to entice businesses to move here. If you look at all the ares in the country with the highest growth and lowest unemployment rates, they typically all have one thing in common; low taxes. In a competitive global economy every aspect of a business must be looked at. As a result, companies have grown smarter over the last several years. Wisconsin can't rely on ambitious and blindly state loyal UW students alone to stimulate growth. If changes aren't made, Wisconsin will lag behind the rest of the nation as the economy recovers. Tourism won't get it done. There is very little offered in this state that can't be found in other states in that regard.

kinsohn
Dec 11, 2008 at 1:19 p.m.
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Keep in mind a couple of things: 1. the taxes they suggest raising are the least unpopular: thus, they figure they can raise them more easily when necessary (which will be all the time), 2. This would require an entire state takeover of school finance, as only about half of school budgets now come from the state, and 3. You can be sure there was no discussion of LOWERING taxes in these "town halls," which probably sounded more like echo chambers.

billnewbie
Dec 11, 2008 at 12:32 p.m.
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They will replace the property tax support for schools when they can apply a surtax on ice skates in Hades.

JimB
Dec 11, 2008 at 12:24 p.m.
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Go read the proposals. They are recommendations of goals not strategies for implementation. I think they've been fairly conservative in what they're looking for, especially in getting schools off the property tax rolls.

snarly
Dec 11, 2008 at 12:18 p.m.
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lets put up toll booth's and generate plenty of money for the state.It will help everyone.

billnewbie
Dec 11, 2008 at 12:02 p.m.
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Raystone nailed that one.
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There is no way any taxes will be reduced what with all the health care initiatives and other social engineering projects in the works. But taxed will be raised, maybe just the sales tax, maybe all taxes, but they will be raised.

bouncerbear
Dec 11, 2008 at noon
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"... would reduce property and income taxes " really means reduce the INCREASE to property and income taxes. I have been a homeowner for many years and have yet to see a reduction in property tax (overall). Yet the state finds money time and time again to pay these people to study and write these meaningless reports.

raystone
Dec 11, 2008 at 11:24 a.m.
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The "tax shift" this group is proposing is in reality a sales tax increase on goods you buy with no meaningful property tax reductions. Do you really think any state with a budget deficit would let a REDUCTION in revenue go through ?
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Their town hall meetings were staged events filled with prepared comments and one-sided debates. For example, they didn't recognize any proposals to cut and reduce services. (which according to a poll here, most citizens want).

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