The Liberty Tree Lantern

New Revenues Won’t Erase Structural Deficit

MADISON—Over this and the next two years, state budget legislation enacted or pending would increase taxes and fees $2.82 billion, according to a new report from the Wisconsin Taxpayers Alliance (WISTAX). Now in its 78th year, WISTAX is a nonpartisan organization dedicated to public policy research and citizen education.

  If you had a company that did work in Wisconsin and in surrounding States, and you employed a lot of people, like Michels Pipeline Construction for example with 5000+, or any other businesses that also conduct any form of sales or business outside of Wisconsin, why would you be soooo  stupid as to keep your business in Wisconsin?  It makes more sense to lay off all WI employees and move to another State to save on insane WI  taxes.  - – Capt. Karl

The 2009-11 state budget proposes additional net tax and fee hikes of $1.71 billion. The first major area of increase affects individuals, small businesses, and investors who pay income and related capital gains taxes. Wisconsin would raise its top tax rate on joint income above $300,000 ($225,000 single) from 6.75% to 7.75%. Also, Wisconsin currently excludes from taxation 60% of capital gains; the budget would reduce that to 40%. The combination of the higher income tax rate and the reduced capital gains exclusion would most impact capital gains of high-income filers. Currently, a dollar of capital gain above $300,000 in income is taxed at 2.70%. The budget would raise that amount by almost two percentage points (or 72%) to 4.65%.

The second area generating significant revenues—$343.6 million, if approved—is additional tobacco taxes. The per pack rate on cigarettes would increase from $1.77 to $2.52 and would be third highest in the U.S. Whether the state would indeed collect the projected revenue is unclear, depending on how many smokers quit or evade the tax.

“An important question about the new $2.82 billion of new taxes and fees is whether they would erase Wisconsin’s recurring budget problems,” notes WISTAX President Todd A. Berry. “Unfortunately,” Berry continues, “the Legislative Fiscal Bureau projects a ‘structural deficit’ of $713 million when the state begins budgeting anew in 2011-12. If no corrective action were taken, that figure would grow to $1.57 billion in 2012-13.”

For a copy of the WISTAX report “Budget Answers Emerging,” write WISTAX, 401 North Lawn Ave., Madison, Wisconsin 53704; e-mail wistax@wistax.org; or call 608.241.9789. o

(Editors Note: An electronic version of this release is available at www.wistax.org.)

 Remember, folks, all Wisconsin companies always pass all State and Federal taxes and fees on to the consumers and citizens of Wisconsin.  They place all costs, including ALL TAXES AND FEES, in their cost spreadsheet estimates, BEFORE they place a markup on top of ALL the costs.  So we end up paying ALL taxes all the time, NO EXCEPTIONS.  NO company ever pays taxes.  Companies don’t like taxes and fees, however, because if their products and/or services cost too much, us customers will not buy as much, which causes diminished business and if TAXES are bad enough, the companies have to lay off people to match the TAX diminished demand.

Would the last person or last company leaving the State of Wisconsin tax hell hole please turn off the lights and close the door?  Thank you.  . – -  Capt. Karl

Or, Fight the spending and taxing insanity of the tyrant Governor James Doyle by signing up at www.recalldoyle.com.

Please also leave your comments below about Recalling Gov. Doyle!