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The
Institute for Wisconsin's Future newsletter on tax policy
Wisconsin citizens want strong communities,
reasonable taxes and a revenue system in which all individuals,
businesses and organizations pay a fair share. This monthly email
newsletter covers current research, community organizing and political
activity in support of a fair tax system which
adequately funds services for the common good.
January, 2008
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Sen. Dave Hansen(D-Green Bay) speaking
while Sen. Bob Jauch (D-Poplar) looks on. |
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State leaders address tax fairness
State Senator Dave Hansen introduced the Corporate
Tax Accountability Act (SB367) in December which will require
publicly-held corporations to report their earnings and tax payments
to the Wisconsin state government which will, in turn, make this
information available to the public. This bill affects less than
1% of all Wisconsin companies, primarily the large multi-state
businesses. Co-sponsors include nine senators and nineteen assembly
representatives. Assembly Representative Phil Garthwaite plans
to introduce an Assembly version.
In addition, State Senator Bob Jauch has been named
chairman of the Senate Tax Fairness and Family Prosperity Committee.
The first meeting on January 10 featured Wisconsin Dept. of Revenue
Secretary Roger Ervin discussing the Tax Incidence Study, a report
completed in 2006 which discusses how the distribution of tax
responsibilities impact Wisconsin residents. One key finding of
the report was that overall, state taxes cost lower income married
homeowners a greater portion of their income than they cost affluent
households. This regressive pattern is caused in part by state
tax policies that rely substantially on property taxes as the
primary source of state and local revenue. The meeting on January
30 will focus on the loopholes large corporations use to avoid
paying their share of state and local taxes.
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Budget woes close Prairie
du Chien tourist center
State tourism officials announced the Prairie du
Chien travel information center will be permanently closed due
to budget constraints. The tourism department must cut $500,000
a year for two years and $1 million within 18 months. The center
attracts about 70,000 people annually. Another tourist center
in Genoa City, along the Illinois border, will also be closed.
Prairie du Chien Mayor Cheryl Mader called the decision short-sighted.
Crawford County Board Chairman Ron Leys said the city feels as
if it has been abandoned by the state. “We’re like
the Appalachia of Wisconsin,” he said. “We have beautiful
scenery, but the average salary is $10,000 less than the state
average. We need help from the state, but we’re not getting
it.”
http://www.lacrossetribune.com/articles/2007/12/11/news/01first.txt
Up in smoke
On January 1st, Wisconsin raised the tax on all tobacco sales.
The dollar-per-pack increase means Wisconsin smokers will now
pay $1.77 in taxes on every pack of cigarettes. It's the 12th
highest tobacco tax in the nation. The campaign for Tobacco-Free
Kids predicts the higher tax will stop nearly 66,000 Wisconsin
children from starting smoking, and it will help more than 33,000
smokers quit. The campaign estimates the state will save about
$1.5 billion in long-term smoking-related health care expenses.
http://www.wsaw.com/home/headlines/12914912.html
Muskego fights Christmas tree tax
scam
Parkland Venture LLC bought a viable commercial property in
Muskego for condo and retail development but is now claiming
it is a “Christmas tree farm” to avoid paying the
commercial property taxes. Parkland bought the paved land on
the corner of Lannon Road and Janesville in 1997. Since Parkland
cannot get a developer to pay the $8 million it is asking, and
commercial property taxes are higher than those on agricultural
land, Parkland removed the top layer of blacktop and put in
tiny white pine plants in late 2004. By spring the trees were
dead and the city refused to give Parkland an agricultural tax
cut for 2005. In November of 2006, Parkland tried again with
bigger plants and started a legal battle with the city to get
the land re-categorized as agricultural. For 2005 and 2006,
Parkland was charged $50,000 each year for commercial property
taxes -- which it refused to pay. With interest, Parkland now
owes Muskego about $128,000 in back property taxes. Meanwhile,
the court decided to grant the company an agricultural use permit
for 2007. This year, Parkland owes $40.78 for taxes on the property
and is trying to get the back taxes excused. Nearby residents
have not seen anyone "working the land" since 2006.
If there are Christmas trees, they are buried in weeds and no
one in the area has bought their holiday tree at the site. It's
a Christmas miracle -- for Parkland Venture LLC.
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