TAXES

Taxes

Wisconsin is the 7th highest taxed state in the nation and 10% above the national average.

The Wisconsin Taxpayers Alliance says state residents paid an average of more than $500 per person last year in mostly small, "hidden" federal and state taxes that are often misunderstood or go virtually unnoticed. "Forgotten Taxes," a new WISTAX report, examines these, as well as telecommunications, utility, real estate, and other small taxes that together generated more than $500 million in 2006.

To make matters worse, the latest budget proposals in Madison seek to eliminate sales tax exemptions on critical services for small business and consumers alike and:

raise taxes on cigarettes by $1.25 per pack ($500 milllion)
place a new sick tax on gross hospital revenue ($225 million)
raise fees on automobile registration by $25 ($200 million)
raise driver's license fees by $10 ($22 million)
double the real estate transfer fee from $3 per thousand to $6 per thousand ($160 million)
Overall the budget proposal includes more than $1.75 million in tax increases.
Increases the rental car tax by $13 in South Eastern Wisconsin.

Governor Jim Doyle’s fiscal mismanagement and record deficit spending threatens our business climate and throttles future economic development by committing tomorrow’s revenues to today’s programs. Governor Doyle vetoed legislation to freeze property taxes three times causing property taxes to increase by $600 million in the last three years.

Furthermore, Governor Doyle’s excessive bonding and budget proposals to raid segregated funds from the Patients Compensation Fund and Transportation Fund to fund his special interest agenda has seriously threatened the long term fiscal solvency of our state. In fact, the non-partisan Legislative Fiscal Bureau announced that the state’s transportation fund will experience a deficit of $68 million. This funding plays a critical role in creating and maintaining Wisconsin’s transportation infrastructure that allows Wisconsin’s Manufacturers to get their products to market. Governor Doyle raided $1 billion from this fund in the last four years alone!

Wisconsin Club for Growth supports a Taxpayers Protection Amendment and a real-freeze on property taxes. We support keeping spending in line with taxpayers’ ability to pay by limiting any increases in spending to the previous year’s revenue level. Any additional revenue will be used to cut taxes and reduce our structural deficit.

Unlike Governor Doyle, the Club supports honest budgets that funds ongoing programs with real dollars. We believe strongly that funds collected for a specific purpose, should be used for that purpose and will maintain the integrity of these funds.

In addition, in an effort to find additional sources of money to send to his special interest contributors, Governor Doyle’s Department of Revenue (DOR) reinterpreted Wisconsin’s tax code with regards to taxable goods and services such as sales taxes on temporary services. These reinterpretations wreak havoc on Wisconsin’s business climate and prohibit long term business planning, growth and prosperity. Wisconsin Club for Growth supports legislation that stops the DOR from reinterpreting previous decisions and rules during audits, assessments or claims for refunds.