Walker Aide Supports Tax Shift
Huh.
Former state budget director Rick Chandler says hiking the sales tax from 5 percent to 7 or 7.5 percent would allow the state to reduce income and property taxes, which rank among the highest in the nation.
“The idea here is to shift the burden to taxes that are less hated,” Chandler told a Monday breakfast gathering hosted by the conservative-leaning Wisconsin Policy Research Institute.
Chandler—who emphasized he was speaking for himself and not Walker—noted that Wisconsin has made some progress on the tax front over the past two decades.
I’m not philosophically opposed to this. The nice part of the sales tax is that it is collected from more people thus broadening the tax base. It is also something that people have some control over paying. If I can’t afford the sales tax right now, I can reduce my spending. The down side is that people get used to it, so it’s usually less painful for politicians to raise it.
BUT, or shall I say BUT... the only way I could support this is if the other taxes are cut to offset the increase in the sales tax AND overall taxation and spending are decreased. Tax shifts virtually never work because the politicians always neglect the other side of the equation. Increasing the sales tax can only be done as part of an overhaul of our system of taxation.
UPDATE: On the bright side, this is really only a theoretical discussion. It ain’t gonna happen.
“Governor-elect Walker is going to tackle Wisconsin’s budget deficit by cutting spending. He will not raise taxes, whether that is the income tax, sales tax or corporate tax,” said a statement from Walker spokesman Cullen Werwie.
Walker’s fellow Republicans in the Legislature have also rejected the plan.
“While it’s an interesting idea, it is dead on arrival in the state Assembly,” said the incoming Assembly Majority Leader Scott Suder (R-Abbotsford).
“If I can’t afford the sales tax right now, I can reduce my spending.”
That applies if you have discretionary spending to cut. For those who live paycheck to paycheck on just the basics (just paying rent, food, clothes for kids), this means a direct hit to their wallet.
Posted by .(JavaScript must be enabled to view this email address) on November 23, 2010 at 1955 hrs
As someone who voted for Scott Walker, made phone calls for his campaign and donated money, this really bothered me. Rick Chandler is a top advisor to Walker, and will have major influence on Walker’s budget. I really do not think Mr. Chandler would say something like this unless he had discussed it with Walker. Mr. Chandler should be removed from the transition team.
If Barrett had won the election and one of his top advisors had said this, conservatives would be all over it. Sykes, Belling, etc would discuss it for hours. Walker should be called out loud and hard for this. Walker needs to keep on message, and make sure his “people” are spreading that same message or else the public is going to become disillusioned and think he is just another phony in politics.
Posted by .(JavaScript must be enabled to view this email address) on November 23, 2010 at 2023 hrs
If Barrett had won the election and one of his top advisors had said this, conservatives would be all over it. Sykes, Belling, etc would discuss it for hours.
I heard Wagner talk about it a bit - he seemed to think Chandler was talking on his own, that Walker didn’t know about it or endorse it but unequivocally criticized it - basically called it the worst thing the Walker administration could do and that it would kill their entire agenda.
Sykes isn’t quit as negative, but still pretty clearly critical as well.
Posted by .(JavaScript must be enabled to view this email address) on November 23, 2010 at 2323 hrs
There are a lot of warning signs out there. People forget how easily republicans are led down the road to the mushy middle.
There are already a dozen statements and actions by state leaders that should make conservates very uneasy.Posted by .(JavaScript must be enabled to view this email address) on November 24, 2010 at 0053 hrs
“If I can’t afford the sales tax right now, I can reduce my spending.”
That applies if you have discretionary spending to cut. For those who live paycheck to paycheck on just the basics (just paying rent, food, clothes for kids), this means a direct hit to their wallet.Yet the same people who are appaled at this and how it affects the little guy have no problem pushing a hike in the sales tax to pay for trains. Go figure.
Posted by .(JavaScript must be enabled to view this email address) on November 24, 2010 at 0159 hrs
A good idea by someone from Walker’s inner circle and it gets shot down for fear of partisan BS before anyone takes a moment to think it through.
The property tax is the most hated form of taxation for good reason. It is a never ending tax, that continually goes up, even when you ability to pay has decreased. It is also completely unavoidable regardless of your income. You either pay it for the property you own, or thorugh the rent you pay.
Liberals slam sales tax increases for being regressive, yet fail to remember that all of the basic goods that are exempt. Conservatives bristle at the sales tax because god forbid we look at ways to raise revenue, even if it is a smarter way to do it.
Each penny of sales tax increase brings in over $800 million annually to the state. What a great alternative to property taxes, or at least a way to defray a significant portion of them. The poor, elderly and fixed income have the option of avoiding it as long as essentials are exempt. For those who want to tax the “rich” we set up a taxation system that keeps their tax dollars in state. We broaden the tax base by having tourist contribute to either our state, school or local budgets depending on how it is implemented. And best of all, for once, Wisconsin could offer a real alternative to ever increasing property taxes.
But no, let’s crap all over it because rhetoric is more important than governing these days.
Posted by .(JavaScript must be enabled to view this email address) on November 24, 2010 at 0214 hrs
Thank you for your sharing,the property of tax is the most hated form of of taxation for good reason .
Posted by qkljeans on November 24, 2010 at 0325 hrs
The only way this works, is if there is a solid cap on property Taxes forever. What always happens is they would raise the sales tax and a couple years later start raising the property tax again until the property tax is back to to what it was and you have a new higher sales tax,
Posted by .(JavaScript must be enabled to view this email address) on November 24, 2010 at 0640 hrs
God, I love post #7.
Posted by .(JavaScript must be enabled to view this email address) on November 24, 2010 at 0806 hrs
Yeah, the commercial spammers are becoming surreal in their comments. Apparently English isn’t their second language, either, though it’s not the worst I’ve seen from a bot.
Posted by .(JavaScript must be enabled to view this email address) on November 24, 2010 at 0843 hrs
The only way this works, is if there is a solid cap on property Taxes forever.
Wrong.
The only way it works is if there is reduction in State and local spending brought about by pitchforks and torchings.
What happens is this:
1) State tells locals they cannot increase proptax.
2) Locals scream.
3) State promises locals more shared revenue.
4) Locals spend like crazy (as is their wont) with ZERO accountablity.
5) Statewide taxpayers pick up the burden through higher State taxes, whether income- or sales-tax.
6) Another election is held, same perps re-elected.Posted by dad29 on November 24, 2010 at 0925 hrs
That applies if you have discretionary spending to cut. For those who live paycheck to paycheck on just the basics (just paying rent, food, clothes for kids), this means a direct hit to their wallet.
Many of the necessities are not subject to sales tax. Although I suppose we could get into the fast food psychology of the lower socioeconomic classes, I don’t think it is necessary.
What is necessary is that we level the playing field with regard to taxation in this state, and in this country. Everyone needs to have a stake, every American should sacrifice to support their country, and their state. It is absolutely unnacceptable that we live in a country where nobody making less than 30K a year pays any taxes.
If we are going to got the sales tax route though, I think it is necessary to totally abolish the income tax, and possibly amend the state constitution against any income tax at all.
If the lefties still want to cry about it being “too regressive” we can discuss expanding exemptions for categories of products, and sales tax holidays for buying school supplies and clothing.
Posted by .(JavaScript must be enabled to view this email address) on November 24, 2010 at 0957 hrs
djmamayek: as long as you refer to those who differ from you politically as “lefties”, you’ll remain a dick.
Posted by .(JavaScript must be enabled to view this email address) on November 24, 2010 at 1111 hrs
From you, George, that is a compliment… Lefty!
Posted by .(JavaScript must be enabled to view this email address) on November 24, 2010 at 1123 hrs
Merge posts #6 and post #12, and you’ve got a hell of an idea!
Posted by .(JavaScript must be enabled to view this email address) on November 24, 2010 at 1209 hrs
there’s a lot to be said for a tax on consumption, as opposed to taxes on saving or accumulated wealth.
But (of course) it’s a non-starter, because we all know that any sales tax increase will be “in addition to,” not “instead of,” existing taxes.
Posted by .(JavaScript must be enabled to view this email address) on November 24, 2010 at 1220 hrs
we all know that any sales tax increase will be “in addition to,” not “instead of,” existing taxes.
That’s why a key component of the Fair Tax requires repeal of the 16th Amendment, because as we all know, politicians in Washington would love a national sales tax in addition to an income tax.
Never thought about applying the Fair Tax principles just to Wisconsin. Have to get rid of the state income tax. Otherwise, it’s a non-starter.
Posted by The Underground Conservative on November 25, 2010 at 1200 hrs
You should send out another Pledge for the Taxpayers.
Posted by .(JavaScript must be enabled to view this email address) on December 04, 2010 at 0903 hrs
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