No Runny Eggs

The repository of one hard-boiled egg from the south suburbs of Milwaukee, Wisconsin (and the occassional guest-blogger). The ramblings within may or may not offend, shock and awe you, but they are what I (or my guest-bloggers) think.

Archive for the 'Taxes' Category

June 7, 2007

Taxpayer rally – 6/15/2007

by @ 15:31. Filed under Taxes.

The Wisconsin Club for Growth, the national Club for Growth, and Americans For Prosperity invite you to a taxpayer rally at the Pewaukee Country Springs Hotel from 1 pm to 3 pm on Friday, June 15, 2007. Milwaukee County Executive (and should’ve been governor) Scott Walker will be emceeing the event, and Newt Gingrich will be showing up.

It is free, but the organizers do ask you to pre-register. You can do that at the link above.

For those of you who need directions, take I-94 to Waukesha County Highway G (Exit 291), head north to Golf Road (the north frontage road), then turn right and head a bit down the road until you reach the hotel on the left side of the road.

See you there.

Doyle and Legislature – “This will not stand”

by @ 12:42. Filed under Politics - Wisconsin, Taxes.

The Wisconsin Taxpayers Alliance figured out that, as a percentage of personal income, the Wisconsin tax bite dropped from 12.18% in 2003-2004 (fiscal year 2004) to 12.13% in 2004-2005 (fiscal year 2005), which dropped our national rank from 6th to 8th. Shhh, don’t tell the tax-increasers in Madistan because that will cause them to redouble (again) their efforts to make us #1.

Before the rest of you break out the bubbly, there are several rather ugly caveats:

  • First, the Census Bureau, which provides the numbers that WTA looks at, is about 2 years behind. Anybody care to guess what the FY2006 and FY2007 numbers will read?
  • The WTA said in that press release, “The drop in rank was due primarily to increased taxes elsewhere, rather than reduced taxes here.” So, I’ll explore that.
  • Both corporate income taxes (up from 0.41% of personal income in 2004 to 0.44% of personal income in 2005) and property taxes (up from 4.42% to 4.43% of personal income) went up faster than total income, which went up 6.54% (combining a 0.47% increase in population and a 6.04% increase in per-capita income; numbers collated by me from from the Census Bureau). In terms of dollars, corporate income taxes went up 14.77% while property taxes went up 4.94%.
  • That rather-astonishing increase in total income masked increases in personal income taxes (4.07%) and sales taxes (3.26%).
  • With inflation between July 2004 and July 2005 at 3.17%, and population growth at 0.47%, every major category other than sales taxes went up faster than the combined effects of inflation and population growth.

I don’t know about you, but I can’t afford a $3 billion tax increase between now and 2009.

Revisions/extensions (11:23 am 6/8/2007) – Since Blogger seems to be having an issue sending out pingback requests, others that picked up on this from here….

Dad29, who points out that we’re also in the lower quintile of GDP growth
Headless Blogger, who asks if 0.05% is significant (it’s $25 for somebody making $50,000, so it’s not exactly significant).

Why I’ve been so quiet on Wisconsin lately

by @ 9:04. Filed under Politics - Wisconsin, Taxes.

After reading the WisPolitics’ Budget Blog pinprick-by-pinprick method of the Joint Finance Committee’s expansion of the $1.74 billion $2.1 billion $2.6 billion damn-near-$3 billion-and-climbing tax hikes in the budget, I’ve run out of vendictives to toss at the asshats at Madistan.

May 14, 2007

Doyle wants you to protest high gas prices by…

by @ 7:22. Filed under Business, Politics - Wisconsin, Taxes.

…supporting higher gas taxes. Yes, you heard me right; to protest $3.40/gallon gas, Jim “Craps” Doyle wants you to pay $3.49/gallon(once the inevitable half-cent rounding occurs). Only a stupid lieberal who has no concept of the free market would think that increasing the amount of money government takes from the sale of a commodity would decrease the price of that commodity.

If only I had the audio from the 6 pm WTMJ-AM newscast from yesterday to go along with this, but since I don’t have recording software on my machine and I was in my car at the time, you’ll just have to rely on my memory.

May 1, 2007

Speaking of taxes…

by @ 18:01. Filed under Politics - Wisconsin, Taxes.

Item #1 comes to us with a hat tip to The BlogfatherAssembly Speaker Mike Huebsch isn’t ruling out backing the 2.5% oil profits tax even though he realizes that it will be an over-7-cents-per-gallon tax increase. After all, he has to keep Payne and Dolan happy, taxpayers be damned.

Item #2 is from Owen’s latest column (H/T so I can get the trackback from Boots and Sabers). It really hammers home the both the sham that is the concept of fund transfers and the insatable appetite of the units of government that are the beneficiaries (and in this case) the authors of that transfer. Can anyone tell me why the state needs $7 out of the $12 fee for the first copy of a birth certificate when it has no cost associated with either maintaining or reproducing that certificate (at least it doesn’t currently take anything out of the $3 for a second copy requested at the same time), much less its proposed take of over half of the proposed $20 fee for EVERY copy, specifically without the oinks and squeals that are the only truthful reason?

And don’t think the other end of the cradle-to-grave mentality that Jim “Craps” Doyle (WEAC/Potawatomi-For Sale) has isn’t covered. Copies of death certificates will be going up from $7 for the first copy and $3 for each additional copy to $20 for each and every copy. Today’s lesson; do not die in Wisconsin.

What’s Yours Is Mine part 3,212

by @ 16:35. Filed under Politics - Wisconsin, Taxes.

Today’s Journal Sentinel drones on about Department of Revenue Secretary Roger Ervin’s whine that we taxpayers are “underpaying” Wisconsin taxes to the tune of $4 billion to $6 billion annually, or between 30% and 45% of the $13.3 billion that the politicos in the Capitol seem to think they’re entitled to. Before I get to items in the article itself, let’s take a look or two at those staggering numbers. There are roughly 3.5 million Wisconsinites between 18 and 65 according to the Census Bureau, so your state government is expecting roughly $3,800 from each and every working taxpayer. With the combination of the “progressive” personal income tax and the “regressive” sales tax, excise taxes, fees, and corporate income tax making that number pretty solid through the populace, is it really any wonder there is “tax-dodging”? Indeed, that combination, which enabled those that see huge government as the solution instead of the problem, is the very reason for that “shortfall”.

Now, on to the article….

State laws haven’t kept up with the ways taxpayers find to avoid taxes – including not paying sales taxes on Internet purchases, state Department of Revenue Secretary Roger Ervin said in his first in-depth interview since taking office about three months ago.

“We don’t have a mechanism in our government to annually update our tax statutes,” Ervin said. “If you don’t have that fundamental statutory authority to keep up with the market, you start falling further and further behind.”

Allow me to translate – Grab your wallets, folks. Gubmint wants to dream up new ways to tax you without any elected official having a say.

Ervin insisted that any moves to close the tax gap would not be a tax increase. He argued that more money flowing into the state from those who should be paying could lower current state income tax rates, now a maximum of 6.75% for individuals and 7.9% for corporations.

Bravo Sierra. More money flowing in is a working definition of a tax increase. Morever, history has taught us that if there is an additional dollar flowing into government, it will be spent by government; hence, rates will not go down.

Ervin was critical of the leaders of WMC for repeatedly saying that Wisconsin ranks among the high-taxed states nationally and that Doyle’s proposed budget would worsen its ranking because it includes $1.7 billion in tax and fee increases.

“We need to have WMC in here as a positive partner that’s willing to have a public debate about the economy in a very rational and mature way . . . ,” Ervin said.

Where to begin, oh where to begin? So much material, so little time. Since it is the High Holy day of Communists, I’ll start with the notion that Ervin has that it is the job of government to control the economy. WRONG! The Soviet bloc is no more because the governments that comprised it thought it could and should control the economy.

As for the “rational and mature” comment, that’s typical liberalism at work. According to Ervin and his fellow travellers, questioning the idea that $3,800 from every working-age taxpayer isn’t enough is verboten. Fiscal responsibility need not be brought up. The idea of government not being allowed to grow unchecked must be quashed at all costs.

HORSE MANURE! The root problem is that government is too big. It may manifest itself with a myriad of taxes designed to hide government’s true cost. It may manifest itself with fund transfers that have become the vast majority of state spending. It may manifest itself with the idea that government must provide health care, or tell restaurants whether they can allow smoking, or that we need two full-fledged Interstate highways between Milwaukee and Green Bay.

April 26, 2007

Craps planning on passing along a 7-cent/gallon gas tax

by @ 11:06. Filed under Politics - Wisconsin, Taxes.

Charlie Sykes just reported that Jim “Craps” Doyle (WEAC/Potawatomi-For Sale) had his Department of Administration ask the Dem members of the Legislature to separate the 2.5%-of-value gas tax he wants to hoist upon “Big Oil” and his “requirement” that “Big Oil” eat the cost of that tax with the idea of keeping the tax once the courts strike down the “no-pass-through” provision. With gas at anywhere between $2.83 and $3.10 per gallon (like the pumps and unlike just about everybody else, I round that 9/10ths of a penny up), we’re talking about over 7 cents per gallon added onto the 32.9 cents/gallon tax.

The drive to number one continues unabated.

April 13, 2007

Doyle’s raising taxes $1.74 billion $2.1 billion $2.6 billion over the next two years

by @ 16:24. Filed under Politics - Wisconsin, Taxes.

(H/T – Dad29)

You may or may not remember the earlier calculations of just how much Jim “Craps” Doyle (WEAC/Potawatomi-For Sale) wants to raise taxes in Wisconsin over the next two years. Now comes news from Assembly Speaker Mike Huebsch that Craps wants to borrow an additional $3 billion over the next two years to feed Hugh Gubmint:

"The Democrats budget puts an additional $3 billion on the taxpayer’s credit cards. To put that in perspective, if Wisconsin had a 20 year loan at 4.41% to pay that it off, the Democrats’ spending spree would cost taxpayers an extra $19.8 million a month. A child born today will leave the hospital with a $861.43 credit card bill thanks to the Democrats’ borrowing.

“The credit card bill is in addition to the Democrats’ plan to raise taxes by $536 for every man, woman and child in Wisconsin, hitting the average family of four to the tune of $2,144. Our children will pay for their spending spree for the rest of their lives….”

That’s right, sports fans. Increasing the size of state government by the cumulative effects of inflation and income growth isn’t enough for Craps. Increasing the burden of that government by $1.74 billion beyond the cumulative effects of inflation and income growth isn’t enough for his fellow Dem members of the Party-In-Government. As Dad29 said, “That’s hardly sufficient for his plan to transform Wisconsin into a State whose residents will have zero after-tax disposable income.” (emphasis in the original)

Talk about your “structural deficits”.

March 27, 2007

Random tidbits from the Elmbrook money race

by @ 13:48. Filed under Politics - Wisconsin, Taxes.

The Milwaukee Journal Sentinel did some digging into the pre-election campaign finance report filed by a group called LEGACY, which wants to have the voters in the Elmbrook School District screw themselves out of $108.8 million (well, make that $300 million by the time interest payments are figured in) through a pair of referendums to remake the two high schools into twin Taj Mahals. First, they’re outspending the the pro-taxpayer Vote No April 3 group by something north of 7.4 to 1; while the borrow-and-tax-and-spenders reported they raised and spent about $7,400 through last week Monday, the no-more-taxers certified that they will neither raise nor spend more than $1,000 through the entire campaign (left unmentioned in the story is that Vote No April 3 also stated they will not receive more than $100 from any individual) and thus are taking the exemption from detailed campaign finances.

That, however, is not the most-interesting tidbit in the borrow-and-spend-and-taxers’ money trail. Who donated what is. Let’s start where the Journtinel started, with Rob and Susan Stieg. Rob works for Boldt Co., who Elmbrook hired to oversee the Twin Taj Mahal renovations at a cost of $550,000. Indeed, Rob is the principal-in-charge of that project. Rob and Susan donated $100 to the cause.

Next, let’s head to the big-money donors. $1,000 came from two different people, and a third person donated $300. Considering that Fred Dooley can’t take a donation over $250, I find it curious that these three people were able to pump in that kind of cash.

Our final stop ends with a pair of real estate companies. $800 came into the campaign from Core Realty Holdings Management Inc. Also, Shorewest Realty did a $100 in-kind donation for a phone bank. I do trust that it was actually from people that work for those firms because the last time I checked, corporations couldn’t donate to campaigns in Wisconsin.

That last tidbit begs the question; why would real estate companies be in favor of higher taxes? The answer is actually very simple; they don’t earn money on property that isn’t sold, and one of the main reasons why property is sold in Wisconsin is because the current property owner can no longer afford the taxes to stay. It does not matter much whether that price is high or depressed.

March 23, 2007

The Craps tax bite just gets larger

by @ 18:33. Filed under Politics - Wisconsin, Taxes.

JSOnline’s DayWatch is reporting that the non-partisan Legislative Fiscal Bureau has estimated that, instead of an average $75 property tax hike due to the Craps Tax Anti-Freeze Ver. 2.0, it’s going to be a $94 one. For those that deal in percentages, that’s now 3.4% instead of 2.7%.

Methinks they’re still understating it. Don’t forget to “thank” Jim “Craps” Doyle, Mary “Panzy” Panzer, and Dale Schultz, the three individuals most responsible for the death of any hope of tax relief.

March 10, 2007

Doyle’s raising taxes $1.74 billion $2.1 billion

by @ 9:05. Filed under Politics - Wisconsin, Taxes.

Well, I guess the honeymoon between the presstitutes in Wisconsin and Jim “Craps” Doyle (WEAC/Potawatomi-For Sale) is over. Today’s Journal Sentinel has as its banner headline the fact that the Crappy budget has, according to the non-partisan Legislative Fiscal Bureau, $1.74 billion in tax and fee increases, broken down thusly:

– $1.37 billion in tax increases:

  • $506 million from jacking up the cigarette tax from $0.77/pack to $2.02/pack.
  • $417 million from jacking up taxes on the sick
  • $272 million that Doyle wants to stick on gasoline sold outside of Wisconsin (that is, if he can get away with not allowing the oil companies to pass along the proposed 2.5%-of-value tax on every gallon of oil used in Wisconsin to Wisconsin consumers)
  • $142 million put upon those of you trying to dump your properties as you flee this tax hell through a doubling of the real estate transfer fee (assuming, of course, you can find suck…er, buyers)

– $376.2 million in fee increases:

  • $167.9 million in a massive across-the-board increase in vehicle registration fees
  • $37.2 million in a near-doubling of the fees for driver’s licenses and photo ID cards

Damn, but it looks like the Pubbies were right when they said last month that it was a $1.7 billion tax increase. Just how big is that? The last sentence of the story starts the thinking, but since the Journtinel couldn’t bring itself to give a percentage, and because public schools tend to de-emphasize math, allow me to run the numbers. It is a 6.78% tax increase over 2 years, or if you prefer it by annum, 3.33%. That is not, repeat, NOT including the “automatic” increases built into the income and sales tax structures that essentially match both inflation and increases in pay. That is in addition to those increases.

But, wait, there’s more. You remember the Craps Anti-Tax Freeze that expired at the end of last year? Doyle wants to bring that back, sans lower jaw (it already lacked teeth). Instead of allowing property tax increases of 2% plus growth and borrowing, he wants 4% plus growth and borrowing. That, folks, is more than what it had gone up prior to the original CATF. Senate Minority “Republican” Leader (dunno whether I should put that last word in quotes yet like I did for the three previous “permanent” holders of that title) Scott Fitzgerald points out that the property taxes that are driving people out of Wisconsin would go up by $350 million this year if CATF Ver. II happens (it would go up about that amount without it as well). Half of that increase would happen under the expired original anti-freeze, but since Fitzgerald only talked about this coming year, you can essentially add that entire amount to the $1.74 billion (actually, a bit more because it’s exponential) to come up with a $2.1 billion tax increase.

March 3, 2007

I’ve got nothing today

by @ 18:09. Filed under Politics - Wisconsin, Taxes.

However, Christian Schneider, the sole survivor of the death of Dennis York, does. He’s putting his new bully pulpit over at The Wisconsin Policy Research Institute to good use, whacking the idea that raising taxes to coerce a desired behavior is a good thing. He even shows a few flashes of the dearly departed York and Pork in that piece.

February 12, 2007

Craps thinks taxes in the rest of America are too low too

by @ 7:25. Filed under Corn-a-hole, Politics - Wisconsin, Taxes.

On top of massive increases in the cigarette tax, car registration tax and driver’s licenses taxes, his push to end the QEO, and plans to essentially end the “limits” of the Craps Tax Anti-Freeze by allowing municipalities to raise taxes 4% annually, Jim “Craps” Doyle (WEAC/Potawatomi-For Sale) now wants to pay for his $1.1 billion raid on the transportation fund to pay off WEAC by slapping a 2.5% tax on each barrel of oil used in Wisconsin (with corn-a-hole and “junk” diesel, of course, exempt because ADM has bought Craps) and forcing them to not pass the increased taxes on to Wisconsin residents pass it on to the rest of the country.

Economics 101 – Corporations ultimately do not pay taxes. Each and every penny eventually gets paid by the consumer. Even if Craps can con his packed State Supreme Court into saying he can “force” the oil companies to not pass it along to the Wisconsin consumers, they will pass it along to the rest of the country.

I wonder if KY Jelly is also exempt; as the Asian Badger has been saying, we’re going to need it.

January 24, 2007

Health care – here we go again

by @ 1:52. Filed under Politics - National, Taxes.

In case you missed the State of the Union speech, one of the few major policy initiatives announced was a massive rewrite of the federal tax code designed to bring more people into the health insurance cabal. I haven’t quite decided whether President Bush was channeling FDR or the head of Aurora Health Care when he made the announcements that he would seek to make all health insurance expenditures taxable income and then give a standard $7,500 (for individuals)/$15,000 (for families) deduction for those that purchase or have their employer purchase health insurance. What I do know is that this has the potential to be more destructive than Bush’s previous meddling in health care, the grafting of prescription drugs onto Medicare.

First, let’s take a look at the current mess that is the tax code as it relates to health insurance. After a bit of research (thanks to the National Coalition on Health Care and National Association of the Self-Employed), I believe I have it down. First off, the portion of health insurance costs paid for by a “C”-corporation is a deductable business expense for the employer and tax-exempt in-kind income for the employee (which means that neither income, the employee’s portion of FICA, nor the employer’s portion of FICA taxes are paid). This was instituted under Franklin Delano Roosevelt as a way to get around his wage controls in World War II.

Next, those employees of “C”-corporations that participate in Section 125 health plans similarily have that portion of the health insurance costs declared tax-exempt (again, neither income nor either portion of FICA taxes are paid). I don’t know exactly when this came about, but apparently most employees have this as an option.

Thirdly, the self-employed (sole-proprietors, partnerships, and “S”-corporations), at least those not eligible to get in on a spouse’s or parent’s health insurance plan, get to deduct the cost of the health insurance from their income tax, but not the self-employment tax (the same as both the employee and employer portions of FICA). This is a more-recent change, starting off with a portion deductable from income taxes in the 1980s and slowly rising to 100% deductable a few years ago.

Those “C”-corporation employees unlucky enough to be paying health insurance costs out of their pocket outside of Section 125 plans, and those self-employed who don’t take advantage of a spouse’s health plan, use after-tax dollars, where both income and FICA taxes (both employee and employer) are paid.

Now, let’s jump to Bush’s proposal. It’s a Rube Goldberg attempt to get everybody into the health insurance cabal. First, it removes the unlimited tax breaks for health insurance costs on employees and self-employed individuals (leaving the deduction for “C”-corporations alone) and treats it as taxable income. Then, it gives every individual tax filer who buys or has bought for him/her health insurance a $7,500 deduction on both income and payroll tax (it’s unclear whether that applies only to the employee’s portion or both that and the employer’s portion), with a joint/head of household filer getting a $15,000 deduction.

Problem #1 – In order to make this appear “revenue-neutral”, the employer’s portion of FICA (and the “employer’s” half of the self-employment tax) would have to be collected on that first $7,500/$15,000. Guess what that is, kids? A tax increase on every employer who provides health insurance, and any tax increase on the employers gets passed along to the employees and the consumers. That could take the form of reduced pay, reduced health benefits, reduced jobs or higher prices, or any combination of the four. Worse, at least from the perspective of the Party In Government, if most of the plans above the limit dropped down to the limit, there is no hope of “revenue-neutrality”. What happens when gubmint runs short of cash? If you said, “They raise taxes,” give yourself a gold star. If you said, “They’ll cut spending,” smack yourself in the forehead.

Problem #2 – Since that first $7,500/$15,000 is taxable income, and without a redefinition of “taxable income”, it would be added to the Social Security obligations, where is the FICA money going to come from? It definitely isn’t coming from the employee (and half isn’t coming from the self-employed). Elsewhere in the State of the Union speech, President Bush pointed out the impending collapse of the three programs dependent on FICA (Social Security, Medicare and Medicaid) without offering up any plan (side note – where’s the ‘Rat plan for this time bomb?). Increasing those obligations without any thought to how to pay for said obligations is a recipe for a faster disaster.

Problem #3 – This does not address the underlying causes of escalating health care costs – the lack of a free market where the consumer has an incentive to hold down the costs and out-of-control malpractice litigation/insurance costs. It might drive down the costs of insurance at the very high end, as the Rolls-Royce health benefits (usually enjoyed by gubmint employees) are scaled back to avoid the adverse tax consequences. It won’t have any effect on the costs of those plans that are underneath the limits, and not many people who currently have employer-provided health insurance where the total cost is underneath the limits will have the savvy to seek out cheaper plans to get the “free money” from the feds. Indeed, by adding more people to the no-cost-incentive scheme, it will drive costs even higher.

Problem #4 – By making the employer’s portion of health insurance as well as the Section 125 portion taxable, this probably opens that up to state taxation. My money says that ‘Rat-infested states, such as Wisconsin, will seek to capture all of that money, including the portion the feds don’t.

Problem #5 – This would adjust using the Consumer Price Index. Last I checked, health insurance costs have gone up much faster than the CPI since who-knows-when. Simply putting a cap on the tax benefits won’t stop that, at least not without stripping the plans of essentially all coverage.

So, what’s the solution? Short of changing the dominant American mindset of wanting to live forever, preferably on somebody else’s dime, there is none.

January 20, 2007

Today’s signs the end of the world, or at least conservatism, is nigh

Item #1 – Hitlery (or if you prefer, Hiliary) Rotten Von Der Schlikmeister has tossed Old Crusty Black Pantsuit into the Presidential ring. The game is now afoot. Unlike Allahpundit, who called the timing an “amateur mistake”, I declare it a masterpiece. One of the most-watched weekends of the (mostly-)liberal Sunday morning talk shows, made so because those liberals without fax machines need their pre-State of the Union Address marching orders, now gets dominated by Hiliary, and the hosts “Meet the Press”, “Face the Nation”, “This Week”, and “Late Edition” won’t have to temper their genuflection before her with any criticisms from Limbaugh and the weekday Fox News crew.

Item #2 (with a H/T to Kate) – It sure looks like we’re about to get a massive tax increase from yet another President Bush. Take a gander at this line from this week’s Presidential radio address (the last one before his State of the Union Address)

Americans are fortunate to have the best health care system in the world. The government has an important role to play in our system. We have an obligation to provide care for the most vulnerable members of our society — the elderly, the disabled, and poor children and their parents. We are meeting this responsibility through Medicare, Medicaid, and the State Children’s Health Insurance Program. We must strengthen these vital programs so that they are around when future generations need them.

It even comes with Jefe’s own “read my lips” moment:

We must address these rising costs, so that more Americans can afford basic health insurance. And we need to do it without creating a new Federal entitlement program or raising taxes.

Item #3 – Investor’s Business Daily is reporting that a tax hike in the form of a cap on tax breaks for employer-provided health care is just one of the hard turns to the left that is expected to be announced on Tuesday night. He will also announce that, unlike Jim Ott (a major hat-tip to Josh Schroeder for getting that exclusive), he doesn’t want to lose his AMS certification, that making his 2001 and 2003 temporary tax cuts permanent are off the table, and that corn-a-hole will get a fresh massive federal influx.

January 18, 2007

Trust politicians to foul up a fix to a foul-up

by @ 16:41. Filed under Politics - Wisconsin, Taxes.

(H/T – Nick)

In order to give instant gratification to the fine folks of the Town of Oregon that were screwed over by the Department of Revenue on their 2006 property taxes to the tune of at least $578,000 through an error in the equalized assessed values of the properties in the town, the Legislature is fast-tracking a “no-interest” loan program.

What happens when the DOR screws up that equalized assessed value? In three words – taxes go up. Longer explanation – there are three potential ways the taxes go up. First, there is at least the potential for a reduction in state aid to the property-taxing authority, and taxing authorities being the charter members of the Party In Government they are, tend to refuse to cut their plans of spending accordingly. This affects the entire taxing district negatively, not just the portion in the directly-affected municpality.

Second, in property-taxing districts that include other municipalities, the ratio of the equalized assessed value in the municipality where the value was inflated to that in the municipality (or municipalities) where the value was not inflated. This automatically inflates the tax bill in the directly-affected municipality, while artifically reducing the tax bill in the remainder of the district.

Finally, under the now-expired Craps Tax Anti-Freeze, the various property-taxing authorities had the authority to increase taxes by the value of new construction. If the value of new construction was artifically inflated by the DOR, guess what? The authorization to further jack up taxes just showed up fraudulently, and knowing the PIGS that are the taxing authorities, they wouldn’t pass up this opportunity. To be fair, this would also have happened under the various versions of the Republican tax freezes that were vetoed by Doyle.

The current “fix” for an error in the calculation of equalized value that results in a higher-than-otherwise-allowed property tax bill is to have the DOR to adjust the following year’s equalized value downward in the hope that that tax bill will be lowered by the amount that it was “mistakenly” raised. Since the equalized value is frozen months before the budgets of the various property-taxing authorities, and thus their mill rates, are set, it is merely a hope on the part of the DOR that they got it right the second time.

Becuase this imperfect relief comes late, the Legislature got this bright idea to create a mechanism for a no-interest loan to those affected by a major foul-up by the DOR (one that is at least 10% high) in the form of AB-20. In short, it gives the affected property owners a more-or-less exact relief in the form of a no-interest loan from the state through the taxing municipality at the beginning of the year, with the amount of that loan added to the tax bill at the end of the year. In theory, the current “fix” outlined above pays off the loan with no additional money coming from the taxpayer. Unfortunately, since that relief is imperfect, if the DOR doesn’t get it right and the year-end relief is less than the loan, guess who has to come up with the money?

On to the reason why this bad fix is headed on the fast track. The fraudulent overtaxation of the fine folks in the Town of Oregon that spurred this “fix” was a result of an error on the part of the state Department of Revenue back in August 2006. At that point, they certified that the property in the Town of Oregon was worth $47 million more than the amount at which should have been certified. Take a good look at that date. That is roughly 3 months prior to the date the state figures out how much aid to give various units of local government, and 4 months prior to the date those governments set their budgets and determine their mill rates. You mean to tell me that, in those months between the foul-up by the DOR and the fraudulent increases in the tax bills, nobody figured this out?

A major part of that fraudulent tax increase is blamed on the effect of that foul-up on the school district’s levy; in fact, the linked Milwaukee Journal Sentinel story focused solely on that. Since the school district also includes the Village of Oregon, there are two parts to that; the reduction of state aid to the district, and the change in balance between the property values in the town and those in the village. Color me cynical, but both the new “fix” and the existing “fix” sure seem to only address the latter, and the folks in both the town and the village just got screwed.

So, what’s the fix? First, don’t wait 5 months to double-check those equalized values. In this case, if the DOR would have caught this in early October, none of this would have happened. Next, instead of guessing how much relief is going to occur in the portion of the district that was screwed the previous year, implement an actual amount and dun those that improperly got a break (be it the state or the property owners outside the directly-affected municipality) appropriately. Then and only then can the “instant gratification” loan work.

December 21, 2006

“Financing” the local portion of the commuter choo-choo

by @ 23:30. Filed under Choo-choos, Politics - Wisconsin, Taxes.

The “geniuses” behind the KRM white elephant, er, commuter rail have a real wiener of an idea to finance this albatross: a 0.05% sales tax in Milwaukee, Racine and Kenosha Counties to provide $8 million per year. Let’s see; assuming their numbers are right (and they’ve been previously blown up), they start the project $157 million in the hole (assuming no additonal fed funding; the 90% fed funding they want would still leave them $23.7 million short) and have to make up $10.9 million per year in the difference between fares and operating costs. Oops; last time I checked, you can’t do that on $8 million/year, and that’s assuming the Craps’ Department of Revenue coughs up all the money due this latest unelected taxing authority (something they have a problem with). Guess those “other funding options” will inevitably creep back into the mix.

What’s worse, they want to give the county boards authority to levy a 0.45% sales tax to “shift” the cost of running the buses off the property tax rolls. Seeing we have 14 tax-and-spend-and-tax-and-spend-and-spend-and-taxers on the 19-member Milwaukee County Board, there’s another $45 million or so in tax and spending increases. They will see to it that there is no property tax relief, as there are portraits of Thug Holloway to be made, pensions to be doled out, union Rip Van Winkles to be “employed”, and deputies to have sit on the freeways to generate even more revenue.

Taxes, taxes, taxes, taxes

by @ 23:05. Filed under Politics - Wisconsin, Taxes.

In case you’ve been in a cave the last 2 days, I have some good news and some bad news for city of Milwaukee property owners (of which my dad is one):

The good – The city of Milwaukee forgot to include an additional $9 million tax increase requested by Milwaukee Public Schools.

The bad – MPS isn’t going to forego the money, and instead of sending out a special assessment to immediately collect that money, the city is going to borrow it so that the $9 million will turn into $14 million or so once interest is figured in.

December 18, 2006

Whack-a-WEAC

by @ 12:54. Filed under Politics - Wisconsin, Taxes.

With the re-election of Jim “Craps” Doyle (WEAC-Potawatomi/For Sale) and the takeover of the state Senate by the ‘Rats, the not-so-little piggies known as WEAC are jumping right to the head of the line to increase their cut of higher taxes. If I weren’t so late to this party, I would be pointing out how the average public school teacher in Wisconsin took home 20% more money in 2003 than the average Wisconsin worker did in 2005 like Dad29 (this for working 20% fewer days), or how the public school teachers get Rolls Royce benefits at almost no cost to them like Peter (numbers not reflected in salary), or even how the total compensation package goes up a guaranteed 3.8% per year like Owen (if the rank-and-file don’t see that money, they really need to talk to their union and their union-owned Rolls Royce benefit manager).

December 13, 2006

Hey Doyle, where’s the average Wisconsinite home owner’s $5?

by @ 10:55. Filed under Politics - Wisconsin, Taxes.

Imagine my shock when I opened up today’s Milwaukee Journal Sentinel this morning and found this headline – Median property tax bill in state up $7. Instead of the pap and self-congratulations both parties heaped on each other for this latest increase contained within (I’ll get to that in a minute), let me bring in a quote from Jim “Craps” Doyle (WEAC/Potawatomi-For Sale) when he created his expiring tax anti-freeze, as carried by that very newspaper – “‘The result of the freeze that I will sign will be that the average property tax on the average home will not go up at all next year, and will actually go down $5’ in December 2006.” So, where’s the $5, Jim? Better make that $12, because they’ve gone up an average of $7.

Republican Assemblyman Dean Kaufert, the incoming Assembly co-chair of the Joint Finance Committee, didn’t exactly cover himself in glory by calling that “laudable”. What’s laudable about another record property tax intake of $8,700,000,000?

As for the excuses for the high property tax intake, let’s take a look at them:

  • Homeowners pay about 70% of all property taxes, according to the Legislative Fiscal Bureau. – What a canard. Even if 100% of the property tax levy were shifted to businesses, the people of Wisconsin will end up paying nearly 100% of the property tax levy in the end.
  • Wisconsin’s public schools must largely rely on property taxes. Of the $8.7 billion total property tax levy, $3.7 billion – or about 42% – will go for public schools, Schmiedicke said. – Wait a minute; I thought Craps was having somewhere north of 60% of the costs of schools paid for by the state. I don’t know if it’s 2/3rds anymore, but assuming that it is, we’re spending $11.1 billion on schools, for what?

    One more thing about the $3.7 billion. That’s $200 million $550 million less than the $3.9 billion $4.25 billion Dem Senator Jon Erpenbach wants to jack up sales taxes by to replace the school property tax. Jon, you mean to tell me that the state needs more than 5% just to manage this, and we have to give the counties somewhere north of $500 million more in the process?

  • Wisconsin has more local governments, which levy and spend property taxes, “than all but the largest states, such as California and Texas,” said Todd Berry, president of the non-profit Wisconsin Taxpayers Alliance. – Guess it’s time for some consolidation
  • The Legislature has refused to let local governments levy local-option sales or income taxes, said Andrew Reschovsky, a University of Wisconsin-Madison economics professor. – And for that, I’m thankful. It’s bad enough that counties, a couple stadium boards and the idiots that run the Midwest Airlines (soon to be AirTran Airways) Center get to levy sales taxes.

November 30, 2006

New Berlin mayor robbing from the taxpayers to give to the city

by @ 7:09. Filed under Politics - Wisconsin, Taxes.

Matt Thomas has all the details, including an update from one of the 2 aldermen who voted to not rob the taxpayers blind. To sum it up, the city of New Berlin, after finding out how much the School Tax Levy Credit was going to be, used that money to justify increasing their budget despite direction from both the state Department of Revenue and the Legislative Fiscal Bureau to not consider that money as revenue for the city (or any other taxing authority). Thomas, who is Vice President of the New Berlin School Board, was not informed by the city that this credit had increased before the New Berlin Common Council meeting last night, where the budget was adopted, despite the city knowing since no later than November 22.

If any of you Photoshop geniuses can do Matt a favor, he’d like a pic of Chiovatero/Swiper/Robin Hood/Fonzie jumping a shark.

November 27, 2006

Sales tax to increase even more

by @ 7:52. Filed under Politics - Wisconsin, Taxes.

Instead of working to comply with a federal law that makes collecting sales tax on internet access charges illegal, 2 different groups are looking at adding more items to the sales tax roll, both to allegedly relieve property tax pressure. Before I explode both plans, as well as the Journal Sentinel call for taxing absolutely, positively everything (with the exception of newspapers), haven’t we tried this before, with the state promising 2/3rds funding for schools? That wasn’t all that successful, as the spend-and-taxers on school boards realized that they just tapped into a bottomless pit.

First, Dem State Senator Jon Erpenbach wants to tax everything except the “necessities of life”, which he and the linked Journal Sentinel story defines as including food, drugs, health care services, shelter, and agricultural products (remember this list, I’ll come back to it later), so that the state can assume full funding for schools. That is a $3 billion/year sales tax increase. Erpenbach wins the Stupid Quote of the Day Award for uttering this gem, “Most everybody, at the end of the day, will have more money in their pocket.” The ONLY groups that will have more money at the end of the day are, in order, the school districts, builders of schools, WEAC, administrators, and teachers. The last vestige of restraint on spending, the risk of running everybody out of town because of skyrocketing property taxes, will be gone.

Erpenbach also wins the runner-up for the Stupid Quote of the Day Award for not saying the corollary to this quote, “For every exemption that was handed out, there was no cut in spending.” Logically, that corollary is, “For every new item taxed, spending will increase by at least the amount taken in by said new tax.”

Next, the Wisconsin Counties Association wants additional sales tax revenue to avoid having to slow down their massive spending appetites. They’re whining that local governments only got 14.8% of all state spending in the current budget, down from the 27% of all state spending they got in the 1989-91 budget. Cry me a river; I’ll lay dollars to donuts that 14.8% this budget represents more money than 27% in the 1989-91 budget. I’ll even throw in a quarter or two for a donut hole that it is greater even after adjusting for inflation. Even if it doesn’t, why in the hell should somebody up in, say, Tomah, pay for, say, retiring Milwaukee County DA E. Michael McCann’s enhanced pension (that’s right; unless I missed something, McCann never signed away one dime of the enhanced pension).

In any case, they want what they term a $700 million/year sales tax increase, with that money diverted to the counties, so they can continue to do stupid stuff like give lavish pensions. Unlike Erpenbach, they actually list their targets – computer, legal, personnel, architectural, engineering, and surveying services, advertising, management consulting, public relations, accounting, beauty salons, barbershops (that’s funny, I paid sales tax on my last haircut), and health clubs. You can safely add another $50 million to the individual counties that levy the 0.5% county sales tax, because I doubt they included that little kicker in there.

Those are the same taxes that Erpenbach wants to raise and divert to schools. Guess the counties will just have to “suffer” with the $250 million in additional sales taxes they’ll get from levying the 0.5% county sales tax (assuming, of course, the Craps’ Department of Revenue coughs up the dough; have they caught up on what they owe the counties yet?).

WCA executive director Mark O’Connell also wants in on the Stupid Quote of the Day competition; he spews out, “We continue to believe that we can tax-cut our way to prosperity when, in reality, the wealth-makers of tomorrow are more interested in a quality of life. If we wish to create a sustainable solution for Wisconsin’s future, we should be investing in our communities, making them attractive to smart young people.” Hey dummy, have you looked at where the jobs are being created lately? It’s not high-tax Wisconsin.

However, they’re both pikers compared to the Journal Sentinel’s Steven Walters and Bob Veierstahler. Walters stresses again and again that they’re “exemptions” and that eliminating them could bring in $3.9 billion per year. He sure seems to want to go one step further and raise the actual rate, pointing out that it was last raised 24 years ago, then whines that nobody in the Capitol wants to do so.

Veierstahler put together a “helpful” chart of exemptions, and what is shocking is what’s included:

– Food, right at the top of the list – Erpenbach and the WCA don’t even want to go that far.
– Fuel – Guess Veierstahler doesn’t think either the gas taxes or gas prices are high enough.
– Sales to state and local governments – Nothing like taxing oneself to inflate the numbers by $228 million.
– Live game birds and clay pigeons – I’ll lay even more dollars to donuts that Veirstahler doesn’t believe there is an individual right to bear arms enshrined in both the state and federal Constitutions.
– Admission to elementary and secondary school events – Well, at least that might cut down a bit on the violence at MPS basketball games.

November 15, 2006

First two taxes to go up in Doyle’s second term – vehicles and drivers

by @ 17:50. Filed under Politics - Wisconsin, Taxes.

Here’s the increased “fee” schedule proposed by the Department of Transportation:

  • Cars – up from $55 to $80, a 44% increase
  • Light trucks weighing less than 4,501 pounds – up from $48.50 to $80, a 65% increase
  • Light trucks weighing between 4,501 and 6,000 pounds – up from $61.50 to $89, a 44.7% increase
  • Light trucks weighing between 6,001 and 8,000 pounds – up from $77.50 to $112, a 44.5% increase

Those tax hikes, which will dump $208 million into the coffers over the next 2 years, will allegedly go to “critical” road needs such as road maintenance and rebuilding the Vote Fraud/FIB Highway between Illinois and Milwaukee. More likely, it, like the $600+ million raided by Jim “Craps” Doyle (WEAC/Potawatomi-For Sale) in the last budget, will go to contributors of Doyle.

Further, they want to increase the fees for the 8-year driver’s licenses from $24 to $34, a 42% increase. Supposedly, that $22 million over the next 2 years will go toward federal requirements to make the licenses a more secure form of ID.

Look for the ‘Rat-infested State Senate to propose a return to the automatic increase in gasoline taxes next year as well. Yipee; we can be COMPLETELY hostile to drivers now.

“Thank” you, Mary Panzer and Dale Schultz, for not taking any action to protect the taxpayers.

Craps Tax Anti-Freeze Sublimination now complete

by @ 14:29. Filed under Politics - Wisconsin, Taxes.

Jim "Craps" Doyle (WEAC/Potawatomi-For Sale), as quoted by the Milwaukee Journal Sentinel in July 2005 – ""˜The result of the freeze that I will sign will be that the average property tax on the average home will not go up at all next year, and will actually go down $5"² in December 2006."

County Board Supervisors Gerry Broderick, Toni Clark, Elizabeth Coggs-Jones, Lynne De Bruin, Marina Dimitrijevic, Chairman Lee Holloway, Willie Johnson Jr, Michael Mayo Sr., Ryan McCue, Richard Nyklewicz Jr., Roger Quindel, John Weishan Jr., Peggy West and James White to the taxpayers of Milwaukee County – A 3.6% levy increase this year AND a guaranteed 5% levy increase next year because of irresponsible spending is just all right with us. PPPHHHHTTTTHHHHH!!!!!!

I want my $5, Doyle. I didn’t get it from the city of Oak Creek, the Oak Creek/Franklin School District, Milwaukee County because of the board, Milwaukee Area Technical College, or Milwaukee Metropolitan Sewerage District. I highly doubt I’m getting it from the Southeast Wisconsin Regional Planning Commission. That leaves it to come out of your pocket.

For the rest of you, this tax anti-freeze ends this year, and thanks to you dumbshits in the 5th, 21st, 23rd and 31st Senate Districts and to the 53% of Wisconsin that are too stupid to know a corrupt politician when you see one, there won’t even be this standing betwee the wallets of the taxpayers of Wisconsin and the vaccuum cleaners that have property tax levying authority. Hello, double-digit tax increases.

Let the recalls begin anew.

November 14, 2006

The county budget is vetoed; now it is in our hands.

by @ 16:40. Filed under Politics - Wisconsin, Taxes.

First things first, if you haven’t seen Patrick’s video of Milwaukee County Executive Scott Walker’s veto announcement, go do so. I was there, and I doubt the TV news will do the announcement justice.

Next, realize that, if the County Board overrides this veto and refuses to have a “do over” on the budget, here’s the cold, hard facts that will bite those of us who live in Milwaukee County:

  • This budget includes a $9 million levy increase.
  • Despite this levy increase, the fact that the County Board put back into the budget a whole slew of positions, but only funded a couple months’ worth of pay puts the county $6.55 million in the red on January 1, 2007.
  • Further, by not accepting Walker’s plan to issue bonds to cover the pension obligations, but assuming the savings from the issuance of those bonds, the county will fall another $6.25 million in the red by the end of the 2007 budget.

The County Board did pass this budget by a vote of 14-5 (with my supervisor, Paul Cesarz, among the 5). However, we can possibly sway three members of that majority to do the budget over: Ryan McCue, Lynne De Bruin, and Roger Quindel. Upholding this veto will give both the taxpayers and the county another chance to get the budget right by everybody.

There is not a moment to lose. The County Board will vote on overriding the veto of the budget tomorrow. Get a hold of your supervisor, especially if you live in the districts of the three I listed above, by callling 278-4222.

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