Wisconsin Taxpayers Alliance Distorts - What Else Is New?

The Wisconsin Taxpayers Alliance (WTA) misleads, distorts and will not come clean. It is that simple.

Last week they issued a press release. Wisconsin Income Taxes Rank Among Highest in Nation

MADISON—Wisconsin’s income tax claimed 3.3% of personal income in 2007, making it the 10th highest nationally among state income taxes. When compared on a per capita basis, income taxes averaged $1,137 per person, 13th highest nationally, and ahead of all neighboring states except Minnesota. These facts come from a new report from the Wisconsin Taxpayers Alliance (WISTAX) titled "Wisconsin’s ‘Big Two’: Income and Property Taxes."

According to WISTAX researchers, Wisconsin’s reliance on the income tax, compared to other taxes, was also higher than most states...

Truthful?  Yes it is.

Is WTA accurate in portraying the burden placed on Wisconsin taxpayers by state government? No. Not by a long shot.

We have been over this. State governments have many revenue sources. They include not only income taxes, but fees, various licenses and other assessments. Some progressive states like Wisconsin rely more heavily on progressive income taxes rather than regressive fees.

When we look at all government revenues on a per capita basis, Wisconsin does not rank near the top, but ranks 17th. Using 2008 revenues and current population data, our state collects $2680 per capita. That puts us as close to 34th ranked Mississippi ($2252) as it does to tenth ranked Delaware ($3360).

Is WTA acting consistent with its stated mission when it writes a misleading press release?  You make the call.

The Wisconsin Taxpayers Alliance (WISTAX) believes an active, informed citizenry is essential for effective representative government.  We demonstrate this belief by providing Wisconsin voters and taxpayers, students and teachers, business leaders and public officials with accurate, objective information about the operation of their Wisconsin government.  Nonpartisan and independent, WISTAX is the only statewide group that cuts through the partisan and special-interest rhetoric to deliver the honest facts about how Wisconsin government works, taxes and spends.  The Wisconsin Taxpayers Alliance has been working to achieve efficient, responsible government through research and education since 1932.

• "accurate, objective information?"
• "nonpartisan and independent?"
• "honest facts?"

Nonsense.

 

Comments

[Dale Knapp, WISTAX Research Director]

As one of the co-authors of the report, I have to take exception with your criticism here. This report was not about the overall tax burden or the "burden placed on Wisconsin taxpayers by state government." Rather, it was simply a report on the income tax. The study looked at: Wisconsin's income tax relative to other states; the income tax burden at various income levels; the state's reliance on the tax; the standard deduction and credits available for lower-income filers; and finally, recent changes. The companion piece was a short article on the property tax, again a look at one individual tax, not the entire state or state-local tax burden. We often do report on individual taxes to help people understand them and put them in context. We have written previously about the sales tax, corporate income tax, and other smaller taxes (cigarette, utility, etc.). I understand your criticism of our reports on the total tax burden, which we publish when the Census Bureau figures come out. However, I will say that, if you read those publications, we generally report the tax burden and the tax+fee burden. However, as previously stated, this report was not meant to look at the broad picture, but rather to help people understand the income tax and place it in some sort of context.

[Leon Burzynski]

Regardlesss of what the co-author of the report claims was his mission, the fact of the matter is that the premise was, and is, misleading. The radio talking heads and groups like the Taxpayers Alliance continually harp about the tax level and neglect to compare the total cost to support public services on a state by state basis. He said they do compare when writing about the census report -- every ten years -- big deal!

[Tim Duehring]

Perhaps he should move to Florida. http://www.time.com/time/nation/article/0,8599,1919916,00.html

[Ronald Kent]

The taxpayer movement which WTA is part of came out of the peroid of the Great Depression and was dedicated to fighting the New Deal policies of FDR. Many of these non-partisan tax fronts were dedicated to undermining the reforms FDR and others were fighting for. We should always inquire where such tax fronts receive their funding and always look at their use of language-"tax burden" has been tested by right wing think tanks and focus groups as an effective phrase to undermine progressive tax proposals for many years. What is really interesting is that the Wisconsin income tax came into being with the help of a progressive Republican Governor, Francis McGovern in 1911. Now the Republican Party of Wisconsin has a plank in its platform to abolish the income tax. Tax fairness never seems to be an issue that engages the minds of some our erstwhile "neutral" advocates. Peace, Ronald Kent

[Gary]

How does one accurately or nearly accurately compare one state with another their taxes.

States have different:
income tax rates (some have local income taxes)
property tax rates
drivers license fees
motor vehicle plate fees (some are based on age and/or value of the vehicle)
sales taxes (some have special local sales taxes)
water and sewage fees
garbage collection fees
building code fees

States don't all provide all of the same services to their citizens either. Or the same quality of services. What may work in one state may not in another.

There may be hidden taxes as a result of poor quality services. Hidden taxes being costs associated with individuals incurring repairs as a result of roads constructed poorly or serviced poorly in inclement weather, flooding of homes or infrastructure, combined sewage and overflow drainages or separate, utility failures, etc.

[Michael A. Shea]

Maybe we need to shake things up here. Why not have a reality show called "Trading Taxes" where a dozen families exchange homes, schools, jobs, and - of course - taxes for a year. A dozen families from Wisconsin who are closely connected with WTA and a dozen families from Arkansas who are closely connected to Arkansas Advocates for Children and Families (an effective, pro-government services organzation) would have to experience firsthand the different systems of taxes/fees and services.

We can argue about rankings till we are blue in the face. Let's see how reality television can shape public opinion.