Fair Taxes

2007-05-03T07:29:00.000-07:00

Dave Zweifel: School funding needs reform now
By Dave Zweifel

We ran a picture several days ago of five Madison West High School students holding textbooks that were older than they were.

The young men and women were part of a group that testified at a legislative hearing in the State Capitol to urge legislators to find a better way to finance public education in Wisconsin.

The current system, which relies on the property tax and features so-called revenue caps to supposedly lessen the impact of that tax, is causing havoc in school districts around the state. As the West students demonstrated, even supposedly "wealthy" districts like Madison can't buy up-to-date textbooks because of the caps. La Follette High students told legislators that a class aimed at helping students get ahead in mathematics had to be canceled, just one example of how public education is suffering in our state.

Congratulations to those young people who had enough gumption to tell legislators that the time has come to get off the dime and do something to reform the way we finance education.

Too bad more adults don't do the same, because if we continue to force school districts to make draconian cuts in their budgets, it's not going to be too long before Wisconsin's once-vaunted education system will be mediocre at best -- large classes, old textbooks, fewer extracurricular activities, a steady loss of the best teachers to more rewarding opportunities.

That is happening already, and it's time for all of us to make a stand, just like those students did at the State Capitol the other day.

There's got to be a better way than constantly pitting property taxpayers against the needs of young people who hold the key to our state's and nation's future. Wisconsin needs to remove schools from the property taxes and come up with a statewide system that treats public education fairly and responsibly.

Take education off the property tax and let those taxes fund all police, fire, garbage collection, parks and other services that truly benefit property owners.

Divert the state aids that now go to municipalities to the schools. That would go a long way to cover the loss of property tax revenue and result in a system paid for by income and sales taxes, which would be much more fair than the regressive property tax -- a tax that is oppressing many of our senior citizens on fixed incomes.

Wisconsin has conducted several studies on how we can fix the funding of our education system. Isn't it time that the governor and Legislature start looking at those recommendations and consider other ideas instead of foolishly tinkering with the same old broken system?

It may sound hyperbolic, but the future really is at stake.

Dave Zweifel is editor of The Capital Times, Madison, WI newspaper.
Published: May 2, 2007

2007-02-28T17:53:00.000-08:00

WISCONSIN BUSINESS

Wisconsin's business climate is shameful

Posted on February 28, 2007 4:39 AM

*
By Mary Lazich, a Republican state senator from New Berlin...

Like a blast of arctic air, Wisconsin got a chilly dose of news about the condition of our business climate: It's getting worse.
The latest state-by-state ranking of business climates is available. Wisconsin ranks No. 38 on the list of the most business-friendly states, dropping from No. 32 the previous year. The 2007 version of the State Business Tax Climate Index was prepared by the Tax Foundation in Washington, D.C.

Five areas of taxation were examined to compile the rankings: individual income taxes, major business taxes, sales taxes, unemployment insurance taxes and taxes on wealth or assets (that would include property taxes).

Wisconsin's discouraging ranking should be another warning sign that Wisconsin taxes are too high. The Tax Foundation reports, "Taxes matter to businesses. In a highly competitive global market, states need to make their tax systems friendly to business in order to facilitate the expansion and growth of business. A simple tax system that is fair to all businesses is the best way for states to have a competitive business tax climate."

States with lower taxes can and do steal business from states with higher taxes. The U.S. Department of Labor, in a June 2004 study entitled, "Extended Mass Layoffs Associated with Domestic and Overseas Relocations," reveals that more often than not, states lose jobs to other states, not to other countries. Wisconsin should worry about Mexico and China. More importantly, Wisconsin needs to fear nearby states with more favorable business climates, such as Indiana (No. 12), Illinois (No. 25) and Michigan (No. 27).

Taxes affect the number of jobs retained and created. Taxes play a role in the location and construction of plants. The most important effect taxes have on business is a reduction in profits. When taxes bite a bigger chunk out of profits, the costs are passed on to workers and consumers. Workers bear the brunt of higher taxes with lower wages and fewer jobs. Businesses frown on setting up shop in a state with taxes that produce smaller profit margins.

The five states with the best business climates are Wyoming, South Dakota, Alaska, Nevada and Florida. Wyoming and South Dakota do not have corporate or individual income tax, Alaska does not have individual income or sales tax, Florida does not have individual income tax and Nevada does not have corporate income tax.
The best way to improve Wisconsin's dreary business climate is to make our tax system less punitive on everyone. Easing Wisconsin's tax burden would also keep more people from leaving.

During November 2005, the Wisconsin Taxpayer Alliance issued a very troubling report entitled, "Moving In, Moving on: Migration in Wisconsin." During the five years prior to the 2000 census, almost 669,000 people either moved to or out of Wisconsin. However, the net in-migration into Wisconsin was a meager 7,282.
Individuals with college or advanced degrees were more likely to leave, while those with less education tended to come. Individuals with household incomes above $75,000 left Wisconsin. Those with incomes of $200,000 or more had the highest rates of leaving.

The huge exodus of wealthy Wisconsinites leaving the state caused a loss of an estimated $4.72 billion in net worth and a loss of $455 million in income over the five years of this study. That means far fewer in-state bank deposits, less stock in Wisconsin firms, less investment capital for in-state ventures, and less money given to local charities.

We are losing our best and brightest at a very young age, and we're experiencing retiree flight.
Young adults leave for college, especially to Minnesota because tuition reciprocity with Minnesota means students cross the border at little or no added tuition cost. Western states like California, Arizona and Colorado also draw Wisconsin youth.
True, senior citizens head to Florida and Arizona for warm weather. They leave for another reason: economics. High-income seniors go to Florida at higher rates than to Arizona, the reason being Florida does not have income tax.

The best way to cut taxes is to reduce spending. I support a constitutional amendment to control the growth in the increase in spending. It tells state and local governments that just like families struggling to get by, they, too must live within reasonable means.

Wisconsin simply cannot afford any more moving vans.

STOP TAXES ON PROPERTY comment: It does not take a rocket scientist to fiqure out that our #1 ranking for property taxes based on per capita income in Wisconsin hurts business, seniors and all taxpayers.

2007-02-27T17:18:00.000-08:00

MON., FEB 26, 2007 - 11:24 PM
WISCONSIN STATE JOURNAL
Many school districts have considered dissolving
ANDY HALL 608-252-6136
ahall@madison.com

A fourth of the Wisconsin school districts responding to a new survey say they've considered dissolving or consolidating to deal with financial pressures.

"To me, that is a signal of defeat. It is a signal of desperation," said Miles Turner, executive director of the Wisconsin Association of School District Administrators, a group representing state superintendents that conducted the survey with the Wisconsin Education Association Council, the 96,000-member union of teachers and staff members.

A majority of school districts also say they've harmed students' education and school operations to comply with state revenue limits, according to the survey results released Monday.

Turner and Stan Johnson, president of the teachers union, said the school-funding crisis threatens the state's economic development.

The latest edition of the annual survey, examining the 2005-06 school year, included responses from 268 (63 percent) of the state's school superintendents.

Revenue limits, implemented in the 1993-94 school year to hold down growth in property taxes, control the amount of money that districts are allowed to raise from local taxpayers.

But educators have long complained that the limits fail to keep pace with rising expenses that include teacher salaries and benefits, which are allowed on average to rise at a faster rate.

Also, educators say, the revenue limits fail to keep up with other costs such as utilities, gasoline, and the expenses of educating students in special education and limited-English- proficiency programs.

Among the survey's findings:

Twenty-seven percent of superintendents said their school boards have held discussions during the past few years about the possibility of dissolving or consolidating their school districts. Among those districts, more than 90 percent said the talks were prompted by financial problems.

Increasing portions of districts report changes that could reduce the quality of educational services. Since the 1998-99 school year, for example, the percentage of districts increasing class sizes grew from 48 to 74 percent. The percentage laying off teachers during that period rose from 36 to 62 percent.

Johnson said class cuts threaten children's ability to grow into well-rounded adults, as courses are reduced in such areas as art, language, music, technology and physical education.

Discussions about consolidation and dissolution were concentrated among small districts with little or no growth in enrollment since 1993.

Six in 10 Wisconsin districts are experiencing enrollment declines.

This survey was the first asking about dissolution, in which a district simply folds and its students are taken in by others, and consolidation, in which two districts merge into a single district.

2007-02-27T17:12:00.000-08:00

School property taxes to shoot upwards, says official
Wheeler News Service
Published Monday, February 26, 2007

Gov. Jim Doyle proposes a budget plan for the start of his second term in office that allows for more local spending on schools.

That, in turn, promises that property taxes will go up in the state.
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The director of the Wisconsin Association of School District Administrators says the increases of less than 2 percent for schools may be the best that can be expected since the state faces a budget shortfall of $1.6 billion.

Property tax bills mailed out next December will be an estimated 5.6 percent higher due to the greater spending on schools.

That would be as much of an increase as the state has seen in the last two years combined.

2007-02-25T17:39:00.000-08:00

Pioneer Press 2/24/07 TwinCities.com

Wisconsin property taxes will go up under Doyle's budget plan
SCOTT BAUER
Associated Press

MADISON, Wis. - Gov. Jim Doyle promised to reform the way the state pays for its schools in his first election bid, pleasing educators who backed his campaign.

But with no major reforms in his first term, Doyle has introduced a budget plan for the first half of his second that allows more local spending and is projected to result in an average property tax increase of at least 5 percent.

That may be the best that could be expected with the state facing a $1.6 billion shortfall, but it won't satisfy school officials or taxpayers, said Miles Turner, executive director of the Wisconsin Association of School District Administrators.

"I don't think anybody's going to be happy," Turner said. "That's the problem."

School property taxes, on average, account for 40 percent of the total tax bill sent each year to homeowners. Put simply, if the state gives schools less money, they can raise property taxes within revenue limits more to pay teachers, maintain buildings and meet other expenses.

Doyle's budget recommends an increase in school aid of 1.7 percent the first year, starting July 1, and 1.6 percent the second year.

The Wisconsin Taxpayers Alliance projects that under that plan property taxes will increase 5.6 percent on bills mailed in December, compared with an estimated 3.3 percent hike on the bills due this year and a 2.3 percent increase the previous year.

Doyle's budget office says the increase will be less - 5 percent this year and 3.9 percent next year. It predicts the taxes on a median-valued home will increase $75 the first year and $26 the second.

The Wisconsin Education Association Council, the state's largest teachers union, and groups representing school boards and school administrators have called for school finance reform. A study group was launched after Doyle was elected in 2002, but so far, no major changes have been made.

Still, WEAC President Stan Johnson said he doesn't think Doyle has gone back on his call for reform.

"He hasn't let us down," Johnson said, noting that his budget does the most it can for schools given the state's financial condition.

But there must be a serious discussion about school funding reform after the budget is passed, he said.

Doyle favors targeted reform but believes the current formula is working, his spokesman Matt Canter said. The governor's proposal makes some changes while helping hold down property taxes, he said.

"What the governor has offered is some flexible, targeted reform especially in the areas he feels are most critical," Canter said.

Doyle's budget does make small positive changes to the way schools are funded, said Andy Reschovsky, a member of the school funding study group and a professor of public affairs and applied economics at the University of Wisconsin-Madison.

"Maybe it's overly dramatic to say it's like moving chairs on the deck of the Titanic," he said. "The changes in the governor's budget that have to do with school reform are in the right direction. Are they going to be revolutionary? No."

While Doyle didn't propose a major overhaul, he renewed his twice-rejected call for the elimination of the qualified economic offer, a requirement that teacher salaries and benefits rise no more than 3.8 percent a year.

Supporters say the limits have helped schools keep property taxes down since they don't have to come up with extra money to pay teachers higher raises. But critics say the raises allowed aren't enough and usually get eaten up by rising costs of benefits.

Doyle also is proposing a minimal increase in money for schools, allowing additional spending outside of revenue caps on items such as school safety and loosening the cap on municipal property taxes from 2 percent to 4 percent.

The revenue cap, at its simplest, determines how much money a school gets, from the state and property taxes, based on a per-pupil cost that is adjusted for inflation each year. Any school that wants to exceed the cap has to seek voter approval to get more money from property taxes.

Critics argue the cap chokes schools and limits their ability to provide quality programming as they are forced to cut class offerings and extracurricular activities.

"In the end, a major overhaul of the finance formula of the state of Wisconsin is necessary," Turner said.

But that requires "political will," he said.

"At this point," Turner said, "I'm not sure that the Legislature and even many of the citizens of this state realize how precarious the situation is for public schools in this state."

2007-02-14T04:12:00.000-08:00

www.postcrescent.com

Posted February 13, 2007

Letters: Citizens need support from their legislators

The Assembly Republicans from northeast Wisconsin are indeed a fickle bunch.

Their 2007-08 legislative agenda claims that reducing the tax burden is one of their primary concerns. But just whose taxes are most likely to get reduced? Individual homeowners or those businesses represented by Wisconsin Manufacturers and Commerce?

Many of our local paper companies are looking to take advantage of a tax loophole that has gone unnoticed for 53 years.

A recent court ruling allows facilities that are engaged in certain types of recycling, property tax exemption. The catch here is that homeowners will be forced to cover the loss of tax revenue or see vital services disappear in many of our schools, cities and municipalities.

The shift of taxes away from business and onto individuals is nothing new in Wisconsin. In 1980, business accounted for 40 percent of all property taxes. In 2004, they paid only 29 percent. This new round of corporate tax relief will only make the situation worse.

Income tax disparity is even a bigger joke on Wisconsin's working men and women. Again, in 1980 the corporate income tax provided 10 percent of the revenue the state relied on to fund its budget. By 2003, that percentage was cut in half to only 5 percent.

Wisconsin Manufacturing and Commerce is lobbying to eliminate corporate taxes altogether, while the average working family paid over $1,800 in state income tax.

Will the Fox Valley's Republican Assemblymen stand up for working families? Or will they continue to pander to the special interest groups that contributed to their election campaigns?

Mark Westphal,president, Fox Valley Area Labor Council, Menasha

2007-02-12T06:20:00.001-08:00

JS ONLINE: NEWS: POLITICS:

Property tax levies could rise under Doyle plan
Limit is double the previous figure; typical tax-bill boost would be 2.7%
By STEVEN WALTERS
swalters@journalsentinel.com
Posted: Feb. 10, 2007

Madison - Gov. Jim Doyle will ask the Legislature to let local governments raise their fall property tax levies by 4% - double the limit of the past two years, but a rate the governor said would still control local taxes.

FairTaxes.com comment:

Our politicians just do not get it! The property tax could be slashed 85% - that is slashed 85% - simply by taxing everyone the same with our income tax, sales taxes and property tax. Eliminate all tax exemptions except poverty level income and it can be done!

2007-02-05T19:31:00.000-08:00

From 2/5/07 THE CAPITAL TIMES
Editorial: Go slow on building sale

On the surface, the state's proposal to sell the sell the Department of Administration building at 101 E. Wilson St. seems like a sound idea.

After all, the 10-story building sits on prime real estate, with views of downtown and Lake Monona that rival those of the expensive condo and office complexes built on nearby parcels of real estate.

There are suggestions that the state government could reap as much as $20 million from the sale, and that's money that could surely be well spent.

But the arguments against selling the building are far stronger than those in favor of the move.

The DOA building houses 600 workers and is a hub of state government activity in downtown Madison - the traditional center of politics and policymaking in Wisconsin. So vital are the tasks of the employees who work in the building, and so necessary is their proximity to the Capitol and other government buildings downtown, that state officials assume that, after the sale, the state would lease the facility at substantial cost for a number of years.

This is where the sale idea gets shaky.

One of the reasons that downtown real estate has become valuable is the fact that the center of the isthmus is the home of state government. If we assume that state government will continue to be centered in downtown Madison, then selling off buildings that the state owns and initiating a long-term policy of leasing space there has the smell of a costly mistake.

City officials led by Mayor Dave Cieslewicz are, of course, salivating at the prospect of having another taxable property downtown. There has always been frustration with the fact that the state does not pay property taxes to the city.

But that's short-term thinking that does not take into account the importance of planning for the smart use of downtown space for a proper mix of residential, retail and employment purposes.

Hopefully, the State Building Commission, which Gov. Jim Doyle chairs and which must approve the sale, will take a longer view.

Before the DOA building is sold off for a quick buck, commission members should think seriously about whether this is the best move by a state government that says it is committed to keeping DOA workers downtown. They may find that there is a smart strategy for making the sale and keeping the workers downtown. But that strategy ought to be in place before the building is sold.

FairTaxes.com Question:

Why shouldn't the State pay property taxes to the local community for local schools? That would be fair. Then the State would be treated like other property owners who are not exempted from taxes. The State should either pay property taxes to local government for property it owns or rent space from someone who does.

2007-02-05T19:19:00.000-08:00

WisBusiness: Expert says Midwest’s big tax break could transfer to AirTran
2/5/2007

By Brian E. Clark
WisBusiness.com

"If Orlando-based AirTran Holdings is successful in its hostile takeover bid for Midwest Airlines, the Florida company should be able to hang on to a property tax break worth about $2 million - as long as it continues to meet the required number of flights from Mitchell International Airport.

Midwest had a net income of $5.4 million in 2006, so its profit would have been reduced by more than a third without the tax break."

*****
Gary Bahr of FairTaxes.com wonders how much you have to pay in additional property taxes to subsidize another business in Wisconsin. Maybe your Governor or State Senator or State Representative has and answer to these tax device scams.

2007-02-03T17:23:00.000-08:00

JSOnline - 1/27/07 - "Taxing time for homeowners" - by Michele Derus

"Our townhouse in Wauwatosa, on the market for eight months, was reassessed at $391,000 last summer," Boyce said [homeowner]. "Our asking price, after being lowered twice, is now $349,900 and still we have not received any legitimate offers. Assessments are completely out of whack with values."

2007-02-02T18:10:00.000-08:00

GREEN BAY PRESS GAZETTE 2/2/2007

Land is put into trust by the federal government on behalf of [Indian] tribes and is not subject to local property taxes.

2007-02-02T07:41:00.000-08:00

Isthmus – The Daily Page:

Madison Alderperson Larry Palm, said “I'm worried about property taxes. Senior citizens and working families are being taxed on the one thing that has the most value -- their home -- but pay with something they don't have -- disposable income.”

2007-02-01T07:02:00.000-08:00

THE CHIPPEWA HERALD:

Rep. Terry Moulton (R-Town of Seymour):

He hopes Doyle is sincere in promising his budget will cut taxes for state residents.

“On the heels of the governor’s veto of the Republican property tax freeze, in 2005 taxpayers saw taxes grow 16.6 percent faster than their income,” Moulton said, noting that days ago Doyle proposed $500 million in new taxes.

“My top priority is to reduce the tax burden for working families, and the three most important words missing from his address tonight were “property tax freeze.”

2007-01-28T17:08:00.000-08:00

WATERTOWN DAILY TIMES 1/26/07

As speaker, [Michael] Huebsch helps develop the assembly agenda, always with an eye toward what matters to the families in his district in western Wisconsin and with the knowledge that when Wisconsin leads, much of the nation follows. He has been a strong advocate for a property tax freeze...

2007-01-22T07:24:00.000-08:00

Laws are like sausages. It's better not to see them being made.
~ Otto von Bismarck, German Prussian politician (1815 - 1898)

2007-01-19T07:17:00.000-08:00

U.S. News and World Report reports on most hated among taxes - the local property tax!
Top Ten worst property taxes includes Wisconsin. Also lists 10 lowest states in case you want to move your assets to another friendly state. Higher assessments and even upkeep of your property taxes you more. 12/28/06. See www.usnews.com/propertytax.

2007-01-16T16:35:00.000-08:00

Wisconsin State Journal Reports:

TAXES TAKE A BIGGER BITE

Taxes are taking a bigger chunk out of Wisconsinites' pocketbook.
Wisconsin Taxpayers Alliance estimates that net Wisconsin property taxes for 2006-07 will rise 3.3 percent to $8.1 billion.

2007-01-05T20:59:00.000-08:00

Dear Editors and Politicians,

I demand these democratic principles in Wisconsin and the nation:

Every voter creates a hard copy record of his vote.

Ethics and laws that apply to citizens will apply to politicians equally. Ethics and campaign finance reform that forbids any politician from voting a tax exemption, law or benefit for contributions or favors of special interests that denies another citizen equal protection under the law. No one should be exempt from any tax, benefit or law at the expense of another.

Fair taxes - a small local property tax on real estate related services that applies to everyone’s real estate, a lower state sales tax rate that applies to everyone’s retail purchases and retail services, and a lower state and federal income tax rate on all income - exempting only poverty level income for all.

Equal education opportunity for all kids financed by general revenues on a per student basis. Social services managed by counties financed by general revenue sharing and county sales and income tax caps.

Universal healthcare for all citizens like politicians now provide themselves.

Freedom from foreign oil and war.

I give Republicans and Democrats until the next election to accomplish these things!

Thank you,

Gary Bahr
FairTaxes.com

2007-01-04T03:34:00.000-08:00

"We know that the property tax burden is unfair, that homeowners are picking up an extrordinary burden of it because of all the exemptions. When someone gets exemptions, others have to pick up the load and it can't be families anymore." ~ Judy Robson, Democrat, Incoming Wisconsin Senate Majority Leader

2006-11-11T16:18:00.000-08:00

Michigan cut their property tax in half over 10 years ago. ~ Fair Taxes

2006-10-10T11:35:00.000-07:00

Illinois's re-elected Democratic Governor and a new veto proof Democratic legislature is considering slashing property taxes and new school funding! Come on Wisconsin, get progressive!