Government Calculations Versus Actual Calculations

I have an answer for Paul...

Last night I had a opportunity to hear Jack Norman, Research Director of the Institute for Wisconsin’s Future speak about Wal-Mart and its use of loopholes to legally avoid paying taxes.

I started to wonder. Imagine that Wisconsin took steps to change the state law so that Wal-Mart would have to pay the taxes.

Would Wisconsin Manufacturers and Commerce (WMC) consider remedial legislation to fix the problem an amendment of the existing tax laws or would they consider that a new tax and/or a tax hike?

I confess that I don’t know what WMC would say.  They seem to have their heads intermittently inserted in their posteriors lately, but I can answer for me. 

YES.  It’s a tax increase. 

Let me give you an example.  Currently, Wisconsin allows people to deduct over $4,000 for tuition paid for each child.  If I have four kids in college, I can deduct over $16,000!  Is it a “loophole?”  Yes.  It’s a way of not paying taxes that is perfectly legal - just like what businesses are doing.  They are in perfect compliance with the law.  The only thing that makes it a “loophole” is that some people think that the tax law should be different to make them pay more taxes.  If Wisconsin were to cancel the tuition deduction, would I consider it a tax increase?  You’re darn right I would. 

Unlike Paul and other people immersed in government, regular people have a very simple method to measure tax increases.  If I have to pay a larger percentage of my income in taxes this year than last year, then my taxes have been increased.  Paul can try to dress it up in semantics and double-speak all he wants.  A tax increase is a tax increase.