Wisconsin's property tax is an antiquated debacle of a system in need of overhaul and replacement. I understand and accept that taxation is a necessary evil, but when property tax becomes my second highest expenditure (behind only my mortgage payment), something seems awfully awry.
While a point of contention for me, what about those with fixed incomes? (I selfishly admit to being concerned about my retired family members). Yet, I only hear deafening silence from elected officials or other talking heads on how to alleviate the problem; and the wailing and gnashing of teeth from those decrying the loss of funding they will endure without the property tax revenues. So, what do I suggest?
Everybody needs to suck it up a bit. Taxes suck, but if we insist on certain services, we have to pay for them.
• Increase sales tax to 7 to 8 percent (not uncommon in other states).
This taxes consumption and is more palatable because it is "hidden," in that you pay a little every day. From what little tax revenue info I could glean from the Department of Revenue, in 2006 Wisconsin collected about $4.1 billion in state sales tax and the total residential property tax levy was about $6.2 billion. Assuming $4.1 billion is based on 5.5 percent, back out 0.5 percent optional assessment, the balance is about $3.7 billion at 5 percent. A 7 percent sales tax would generate an additional $1.476 billion; 8 percent would generate an additional $2.214 billion.
Directly applying said revenues to residential property tax could facilitate a 24 percent to 36 percent decrease in residential property tax levy, with no decrease in total revenues and without increasing commercial, manufacturing or agricultural property taxes. Additionally, sales tax has an "automatic" increase - as the base price of goods increases, so does revenue (2 to 3 percent per year?); resulting in marginal revenue increases of $1.7 billion to $2.5 billion by year five (based on 2.5 percent annual increases).
• Establish tollways on I-90 from Beloit to Wisconsin Dells and on I-94 from the Illinois border to Milwaukee.
Assuming an average of 20,000 to 40,000 vehicles per day for the I-90 option, and 5,000 to 10,000 for I-94 option, and $1 to $2 per vehicle, that could result in annual revenues of between $9 million and $36.5 million.
I realize the aforementioned points are quite simplistic and rather rudimentary, not to mention potentially quite unpopular to some. However, refer to point 1. Also, if I can come up with such in less than an hour, I see no reason why the professional policy makers cannot formulate something at least as good. If not, we need to elect people who can.
While a point of contention for me, what about those with fixed incomes? (I selfishly admit to being concerned about my retired family members). Yet, I only hear deafening silence from elected officials or other talking heads on how to alleviate the problem; and the wailing and gnashing of teeth from those decrying the loss of funding they will endure without the property tax revenues. So, what do I suggest?
Everybody needs to suck it up a bit. Taxes suck, but if we insist on certain services, we have to pay for them.
• Increase sales tax to 7 to 8 percent (not uncommon in other states).
This taxes consumption and is more palatable because it is "hidden," in that you pay a little every day. From what little tax revenue info I could glean from the Department of Revenue, in 2006 Wisconsin collected about $4.1 billion in state sales tax and the total residential property tax levy was about $6.2 billion. Assuming $4.1 billion is based on 5.5 percent, back out 0.5 percent optional assessment, the balance is about $3.7 billion at 5 percent. A 7 percent sales tax would generate an additional $1.476 billion; 8 percent would generate an additional $2.214 billion.
Directly applying said revenues to residential property tax could facilitate a 24 percent to 36 percent decrease in residential property tax levy, with no decrease in total revenues and without increasing commercial, manufacturing or agricultural property taxes. Additionally, sales tax has an "automatic" increase - as the base price of goods increases, so does revenue (2 to 3 percent per year?); resulting in marginal revenue increases of $1.7 billion to $2.5 billion by year five (based on 2.5 percent annual increases).
• Establish tollways on I-90 from Beloit to Wisconsin Dells and on I-94 from the Illinois border to Milwaukee.
Assuming an average of 20,000 to 40,000 vehicles per day for the I-90 option, and 5,000 to 10,000 for I-94 option, and $1 to $2 per vehicle, that could result in annual revenues of between $9 million and $36.5 million.
I realize the aforementioned points are quite simplistic and rather rudimentary, not to mention potentially quite unpopular to some. However, refer to point 1. Also, if I can come up with such in less than an hour, I see no reason why the professional policy makers cannot formulate something at least as good. If not, we need to elect people who can.
