While most of you were sleeping this morning at 5:30, Democrats on the Joint Finance Committee approved a budget that increases taxes by over $4 billion and raises government spending by more 7% in the worst recession in a generation. As a member of the Committee, I was there for the entire 12 hour session, and I can't tell you how disappointed I am in the product that was approved by the 12 Democrats on the committee.
The committee co-chairs and leaders of the Assembly and Senate promised to put a budget on Governor Doyle’s desk by the end of the state fiscal year on June 30. With votes by both houses planned for June, it appears they will meet the deadline. While Madison politicians keeping their word may be a welcome change of pace, it doesn’t amount to good news in this instance.
Unfortunately, just getting the budget done doesn’t mean getting it right. Turning to tax and fee hikes to fuel an explosion of state government spending means Governor Doyle and the Democrats got it very wrong.
Governor Doyle promoted his state budget proposal in February by vowing to protect middle class taxpayers. He told lawmakers that we can find new revenues and fund our priorities “without raising taxes on middle class families.” He continued, “so, I am not going to raise taxes in the ways that some have suggested. Some say we should raise the sales tax. I’ve never done that, and I’m not going to now.
However, Governor Doyle did nothing to protect middle class taxpayers. To fund new state spending and government jobs, Governor Doyle cast a wide net that trapped middle-class families with a creative assortment of tax and fee hikes. Their tax burden ballooned when Democrats gave the green light to an amended version of the governor’s budget this morning.
Do you own a house?
Your property taxes will go up $316 according to the LFB estimate of the increase on an average home.
Do you use a telephone, cell phone, or fax machine?
Add 75-cents to your monthly bill for each one in order to fund 911 dispatch centers, plus more to fund an $11 million increase in the existing $30 million Universal Service Fund (which ensures all Wisconsinites have phone service). Then watch helplessly as Governor Doyle and the Democrats siphon $100 million to plug holes in unrelated state programs.
Do you have a child in daycare?
Forget about deducting child care tuition and fees from your state income tax. The deduction approved by the legislature and signed into law by Governor Doyle in 2007 has been scrapped. In addition, the per-child licensing fee your child care provider pays to the state is increasing 39%.
Do you pay a portion of your health insurance premium?
It’s no longer tax deductible in Wisconsin. This deduction was also established in 2007.
Do you pay for automobile insurance?
Your rates will go up about 33% due to higher mandatory coverage amounts.
Are you getting married or having a baby?
The marriage and birth certificate fees are doubling.
Is your teenager looking for his or her first summer job?
The work permit fee is doubling.
Do you turn on the lights, heat or air conditioning at home?
Your utility bill will go up so that you can chip in to fund a $9.1 million annual increase in the existing $105 million low income energy assistance fund. And, you can again watch helplessly as $18.2 billion is drained from the fund during the two year budget period in order to pay for Wisconsin Works (W-2) benefits.
Do you have a child attending a University of Wisconsin school?
Tuition for the 2009 school year will go up at least 5% while financial aid is held flat.
Do you have a family member in a nursing home?
The nursing home bed tax will double this year and then increase another 13% next year. And, once again, most of those dollars will be used to pay for other programs.
Do you invest in stocks or real estate?
You’ll share any earnings with the state treasury now that the capital gains exclusion is slashed.
Do you depend on municipal garbage collection?
The “tipping fee” charged to your local government by the state more than doubled.
Do you buy cigarettes?
You’ll pay 75-cents more per pack.
Do you download music, ring tones, videos or books from the Internet?
You’ll now pay a 5 percent state sales tax on these digital products.
Do you ever fill your tank with gas?
You’ll pay 6-cents more per gallon.
With only a few hours to scan the Democrats’ handiwork, this list is apt to expand, and with it, your tax burden.
In the end, Democrats on the Joint Finance Committee packed hundreds of decisions into huge “omnibus motions” and took just a few votes to decide nearly all state government spending. They dodged debate and discussion, and avoided individual votes on particularly tricky political issues by continually meeting in secret, cutting back room deals that have more to do with the personal interests of the legislators rather than the taxpayers, and held meetings in the middle of the night and on weekends to avoid public coverage of what they were actually doing.
Survey Respondents Overwhelmingly Support Cutting Government Spending
Last week, I asked readers to complete a survey designed to help me understand the thoughts of Wisconsinites as to how the $7 billion budget deficit should be handled. Over 3,000 people took three minutes to answer three questions. Thank you to all who responded! Following are the results:
What do you believe state lawmakers should do to address the state’s $7 billion budget hole?
Cut Government Spending
STRONGLY SUPPORT:
79.8%
STRONGLY OPPOSE:
2.5%
Raise Taxes
STRONGLY SUPPORT:
5.4%
STRONGLY OPPOSE:
72.7%
Increase Borrowing to Get Through the Recession
STRONGLY SUPPORT:
2.1%
STRONGLY OPPOSE:
60.6%
If the following taxes were increased to address the state’s $7 billion budget hole, how would they impact your family?
Property Tax
VERY MUCH:
76.3%
NOT VERY MUCH:
4.2%
Income Tax
VERY MUCH:
70.2%
NOT VERY MUCH:
5.3%
Gas Tax
VERY MUCH:
55.5%
NOT VERY MUCH:
9.4%
Sales Tax
VERY MUCH:
47.1%
NOT VERY MUCH:
10.3%
Which of the following policy initiatives do you believe will be most successful in improving our state’s economy?
Cut Taxes on Businesses
STRONGLY BELIEVE:
53.8%
STRONGLY DO NOT BELIEVE:
7.1%
Reduce Government Regulation on Businesses
STRONGLY BELIEVE:
50.2%
STRONGLY DO NOT BELIEVE:
8.8%
Nothing, the State Should Allow the Free Market to Work
STRONGLY BELIEVE:
40.0%
STRONGLY DO NOT BELIEVE:
10.3%
Require Governments to Purchase American Made Products
STRONGLY BELIEVE:
23.8%
STRONGLY DO NOT BELIEVE:
17.7%
Increase Spending on K-12 Education
STRONGLY BELIEVE:
9.6%
STRONGLY DO NOT BELIEVE:
34.7%
Increase Spending on Technical Schools
STRONGLY BELIEVE:
7.9%
STRONGLY DO NOT BELIEVE:
27.4%
Make it Easier for Employees to Unionize
STRONGLY BELIEVE:
4.5%
STRONGLY DO NOT BELIEVE:
64.0%
Use Tax Dollars to Assist Struggling Businesses
STRONGLY BELIEVE:
4.2%
STRONGLY DO NOT BELIEVE:
32.9%
Increase Spending in the UW-System
STRONGLY BELIEVE:
4.2%
STRONGLY DO NOT BELIEVE:
43.1%
A vast majority of respondents advocated for closing the state’s budget gap by reducing government spending. Opposition to tax increases was widespread, with property tax hikes causing the most concern. Increased government spending and new regulations weren’t viewed as helpful to the economy.
There were very few surprises in the survey results. Unfortunately, the priorities of Governor Doyle and Democrats writing the state budget are at odds with yours and mine.
State Representative Robin Vos
State Capitol - Room 321 East - Post Office Box 8953 - Madison, Wisconsin 53708
Phone: (608) 266-9171 - Toll Free: (888) 534-0063 - Fax (608) 282-3663
Email: Rep.Vos@legis.wisconsin.gov
