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Uppity Wisconsin - Progressive Webmasters

« Wisconsin Manufacturers & Commerce Downsizes for Elections and Image | Main | AIG, Chase, Will Again Buy Congress, This Time With More of Our Money »

October 21, 2008

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John

The funny thing about the sales tax increase: Conservatives love the idea of getting rid of the IRS and replacing it with a "sales tax (even though you'll still need an office like the IRS to collect the money)."

In European countries, they actually have both in place, the "Cody plan" so to speak.

So what do the Republicans want? I can only guess that they would propose whatever is convenient at the time, never committing to real change, and using the issues as a wedge in campaigns. After all, isn't it all just a game, where the winner takes office?

libocrat

How about we only raise taxes on you libtards!! Problem solved.
I did a survey and concluded that you libtards suck.
TW, that "stache' and "hair-do" are really cool. Your look may come back in style someday comrade!!

Jay Weber

Paul, thanks for your thoughtful piece. I also wrote in the piece that it is naive to believe that this county board will follow through with their promise to reduce property taxes. If I really thought this county board was going to reduce property taxes after they impliment this sales tax, I'd be more willing to consider it. Until they put it in writing, this is just another tax on all Milwaukee County citizens, and I believe it is going to hurt the poor more than the rest of us. If we 'can afford it', they can't.

Paul

Jay - there is a way to, by law (charter ordinance imbedded in the referdum creating the sales tax), require that the some or all of the prceeds from the sales tax increase be applied to lower property taxes. Let me use the Madison example.

We assumed, at that time, that the sales tax would bring in an additional $12 million in revenues. We estimated that 75% or $9 million would be paid by Madison residents and the remainder by non-residents.

We figured we would require that a minimum of $9 million be applied against the property tax.

Imagine that the previous year we collected $80 million in property taxes. Allow 3% for reasonable growth and inflation. Therefore, the new year $82.4 million is the anticpated property tax collection (levy).

Now subtract the $9 million and you have a cap of $73.4 million on property tax collections for the year the sales tax is enacted.

Since it is a charter ordinance, the legislative body cannot amend it.

Subsequent years are not a problem, since a base was established and any attempt to sprend the sales tax revenues rather than apply them to lower property taxes would result in a big hike that even liberals like me would not dare try. :)

Peter Rickman

This may or may not be germane to the discussion, and it's really a state issue, but can we also deal with the exemptions to the sales tax in Wisconsin?

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