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Sales tax revenue declines for first time

By ASSOCIATED PRESS   Monday, September 14, 2009 - 8:02 a.m.
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MADISON, Wis. (AP) — The amount of sales taxes collected by the state during the past year has dropped by about 4 percent — the first decline since Wisconsin began collecting the tax in 1962.

Consumers hit by economic hard times reduced spending, causing the sales tax to decline by about $4 billion in fiscal 2009.

Even during the recession of the early 1980s, state sales tax collections continued to increase, partly because the state raised the rate to 5 percent in 1982.

The rate was originally set at 3 percent when the sales tax was imposed, then raised to 4 percent in 1969.

A recent report by state Department of Revenue chief economist John Koskinen predicts a 1 percent decline in personal income this year, followed by growth of nearly 3 percent in 2010.




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(16)
Inyafaze
Sep 14, 2009 at 3:39 p.m.
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Oh wow. Imagine that. There whinning about the money of ours they don't have to spend... Go figure.

SkyBlue62
Sep 14, 2009 at 3:39 p.m.
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hey, now wait just one minute..
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WE CONSUMERS drive this economy. so why the heck are businesses being favored with special breaks?
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we get shafted, while they get all these business to business sweetheart deals.
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stand up people and demand your fair deals too. and not some measly 25 cents off coupon.
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while these lardess companys get the cushy tax breaks and we get stuck paying the taxes. just look for example at the donation you make in the counter donate at a store for a chairty. that store chain gets the pat on the back when they hand over OUR donations. why let them get all the credit?
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they prolly didn't even pay as much in income taxes either. yet them same lardbutts cry like sissys for special tax breaks. look at mercury marine for a prime example ;)
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let them move their stuff off shore, and tell'em keep your products out of the USA unless you want to pay your fair share for a change.
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waaa let them cry their crocdile tears we're loosing money. tough for them, get out of business then and let somebody else. bet that don't happen either :D why? because they are raking in the dough. off our backs!
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demand also these do good groups pay to make up for the lost tax revenue eg. the anti-smoker crowd. wisconsin has lost 1.5 BILLION a year, plus this 4 BILLION due to the economy. wow, whats it gonna take for people to wise up and stop letting businesses dig into your wallets??

JimP
Sep 14, 2009 at 12:45 p.m.
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State sales tax is 5 % the .5 is county tax

ja67
Sep 14, 2009 at 12:39 p.m.
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The State sales tax rate is 5.5%. I don't see where they figure it's still at 5%. Go and figure it out your self when you make a taxable purchase.

Matt__Gaboda
Sep 14, 2009 at 12:22 p.m.
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"A recent report by state Department of Revenue chief economist John Koskinen predicts a 1 percent decline in personal income this year, followed by growth of nearly 3 percent in 2010."

1. I hope that is true, but wishful thinking hasn't helped me out much in life. With so many people going out the door that they had to increase the opening, what would convince the states top economist that we will have a bumper crop next year?

2. For those who predicted a sales tax increase, it is the relationship equivalent of being told, "I think we should see other people". Two weeks later you are on a diet and hitting the gym. This is a veiled warning. The state needs to encourage businesses to come to or stay in Wisconsin, not increase the burden on those whose knees are already buckling.

3. I've got nothing, I just like having 1,2,3 and sometimes I go with A, B, C.

Comments: matt.gaboda@yahoo.com

hondaman3
Sep 14, 2009 at 11:56 a.m.
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well lets rise the tax more. you know tax and spend gov,t yippy.........

StaceyU2
Sep 14, 2009 at 11:14 a.m.
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ARMAGEDDON, I SAY, ARMAGEDDON !!!!!

JimP
Sep 14, 2009 at 9:52 a.m.
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What I want to know are the state employees getting a raise because there are no new jobs on the horizon to warrant a 3%increase in income.

dogs_rule
Sep 14, 2009 at 9:48 a.m.
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janesvillean, you post on all blogs as the most well educated person in town, maybe you are, most posts are quite accurate. I am surprised that you can not come down to our level, just this one time, and realize that what I'll bet russ68 was referring to was the report not the actual condition. I, as well, had that exact thought when I read the article. Release a report and include the statement that revenue was ok even in a recession with a tax increase. Please step back once in a while and get off the condescending tone. I applaud your "self described" wealth of knowledge but is does get old.

janesvillean
Sep 14, 2009 at 9:32 a.m.
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Russ68, why would you say that sales tax declining -- a reported fact -- is a "setup"? Did somebody plan for sales tax revenue to decline? Was there some conspiracy to lower economic activity in the state with the ultimate aim of raising taxes?
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Are you even aware that we're in a recession of unprecedented depth in living memory?

Russ68
Sep 14, 2009 at 9:19 a.m.
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Let me just go way out a limb here and say that this is a setup for "justification" to raise the sales tax...

freebird007
Sep 14, 2009 at 8:22 a.m.
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Go Figure, no Jobs means no people and no people mean no tax revenue. I have a idea-- let's tax some more to recoup the loss and then next year when everyone is leaving the state we will tax the ones that stayed more because we will be in worse shape in the budget due to lack of sales.
Solution-- lower taxes and go for the high volume. example 4% of 6 billion is better than 5% of 2 billion. economics 101

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