Plunging gasoline prices have cast a shadow over the idea of replacing the state's current per gallon motor fuel tax by expanding Wisconsin's sales tax to items that are currently exempt from it.
The possible shift was floated by Gov. Scott Walker in a pre-election visit with a newspaper editorial board. The governor suggested it could be built into a revenue-neutral approach. Alas, that may not be true, given the falling price of gasoline.
In later weeks, Walker's own transportation department unveiled a massive spending program to improve, expand and maintain Wisconsin's highway system. It was accompanied by a broad range of financing options. The road building industry and its labor unions loved the department's building suggestions. Financing ideas met quick criticism from others, including Walker's friends in the broader business community.
Walker's trial balloon buoyed the hopes of those who want all sales tax revenues from transportation-related items - such as vehicle purchases and repairs - to go for construction and maintenance. It would increase county sales tax revenues; politicians could even describe it as property tax relief.
Revenue Secretary Richard Chandler is described as among those who favor significant changes to balance Wisconsin's revenue system.
Todd Berry, head of the non-partisan Wisconsin Taxpayers Alliance, contends it has been a very, very long time since the state had a significant overhaul of its taxing system. Wisconsin's tax structure now has a lower sales tax rate than neighboring states. It's offset, in part, by high property taxes for residential properties.
Wisconsin's sales tax has not increased in more than 30 years, although most counties have adopted a sales tax add-on.
Part of the political allure in the sales-tax-increase camp is that the so-called "takers" in society can't escape paying it. Nothing riles some people like the thought that others don't pay any state income tax, but receive aid from the government. Racism may play a part in the emotions of white citizens who may see the "takers" to be of a different color.
When the recent recession hit, Wisconsin opted to balance its needs with a higher income tax on the wealthy. Democrats were in total control of state government and the tax move was based on the philosophy that "much is expected" of those who have been given much. The biggest Democratic failure may have been in carrying that explanation to the public.
The business community suggests that eliminating the higher tax bracket would help Wisconsin's economy grow and make it an attractive place to run a business. It could mean a $250 million state-tax reduction for the well-to-do.
There are political downsides in proposing to trade a higher sales tax for a reduction in the personal income tax and some property-tax relief. Many of the "takers" are the disabled and/or elderly, a majority of them who are white. Wisconsin is among the states that exempt Social Security from the state income tax.
An increase in the sales tax could offer tavern owners a chance to edge up their prices, which usually have the sales tax built in. If the customer doesn't like a 5- or 10-cent increase in the cost of his glass of beer, the bartender can blame the politicians. The bartender won't offer an explanation of the state's revenue system.
More likely, he'll shrug and say it's "a nickel for the governor."
- Matt Pommer, a 35-year veteran of covering state government in Madison, writes the weekly State Capitol Newsletter for the Wisconsin Newspaper Association. His column is published Monday in the Times.
The possible shift was floated by Gov. Scott Walker in a pre-election visit with a newspaper editorial board. The governor suggested it could be built into a revenue-neutral approach. Alas, that may not be true, given the falling price of gasoline.
In later weeks, Walker's own transportation department unveiled a massive spending program to improve, expand and maintain Wisconsin's highway system. It was accompanied by a broad range of financing options. The road building industry and its labor unions loved the department's building suggestions. Financing ideas met quick criticism from others, including Walker's friends in the broader business community.
Walker's trial balloon buoyed the hopes of those who want all sales tax revenues from transportation-related items - such as vehicle purchases and repairs - to go for construction and maintenance. It would increase county sales tax revenues; politicians could even describe it as property tax relief.
Revenue Secretary Richard Chandler is described as among those who favor significant changes to balance Wisconsin's revenue system.
Todd Berry, head of the non-partisan Wisconsin Taxpayers Alliance, contends it has been a very, very long time since the state had a significant overhaul of its taxing system. Wisconsin's tax structure now has a lower sales tax rate than neighboring states. It's offset, in part, by high property taxes for residential properties.
Wisconsin's sales tax has not increased in more than 30 years, although most counties have adopted a sales tax add-on.
Part of the political allure in the sales-tax-increase camp is that the so-called "takers" in society can't escape paying it. Nothing riles some people like the thought that others don't pay any state income tax, but receive aid from the government. Racism may play a part in the emotions of white citizens who may see the "takers" to be of a different color.
When the recent recession hit, Wisconsin opted to balance its needs with a higher income tax on the wealthy. Democrats were in total control of state government and the tax move was based on the philosophy that "much is expected" of those who have been given much. The biggest Democratic failure may have been in carrying that explanation to the public.
The business community suggests that eliminating the higher tax bracket would help Wisconsin's economy grow and make it an attractive place to run a business. It could mean a $250 million state-tax reduction for the well-to-do.
There are political downsides in proposing to trade a higher sales tax for a reduction in the personal income tax and some property-tax relief. Many of the "takers" are the disabled and/or elderly, a majority of them who are white. Wisconsin is among the states that exempt Social Security from the state income tax.
An increase in the sales tax could offer tavern owners a chance to edge up their prices, which usually have the sales tax built in. If the customer doesn't like a 5- or 10-cent increase in the cost of his glass of beer, the bartender can blame the politicians. The bartender won't offer an explanation of the state's revenue system.
More likely, he'll shrug and say it's "a nickel for the governor."
- Matt Pommer, a 35-year veteran of covering state government in Madison, writes the weekly State Capitol Newsletter for the Wisconsin Newspaper Association. His column is published Monday in the Times.
