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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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