"People want just taxes more than they want lower taxes." - Will Rogers.

THE PROBLEM:

The property tax is the biggest crime in Wisconsin.  It hurts farmers and businesses who often pay more in property taxes than they earn in a year.  It hurts seniors who often pay a large percentage of their income to property taxes.  It hurts families who cannot qualify for a home loan when property taxes are factored into the payments.

The state with the highest median real estate taxes is Wisconsin ~ Retirement Living.

The state with the highest property taxes on homes is Wisconsin ~  WSJ.

This is because for 160 years our incumbent politicians have only promised to slash property taxes.

THE ALTERNATIVES:

1. Do nothing.  This has been the basic policy in Wisconsin for 160 years.  And, if we, the people, do nothing this policy will continue.

2. Provide minimal relief.  This has been done a couple times with minimal results.

3. Continue to exempt more and more properties until all are exempt from property taxes.  This is likely to take another 160 years.  Meanwhile, those of us who are not exempted will continue to pay a larger and larger portion of the tax.

4. Provide real reform - The Fair Tax Plan.

SUMMARY OF THE FAIR TAX PLAN BENEFITS:

A. SLASHES TAXES ON PROPERTY:

Slashes property taxes in Wisconsin an average of 85% to a local tax for local property related services only.  Schools and Counties and state programs would be financed with fairer income taxes, sales taxes, revenue sharing and fees.

B. FUNDS PROPERTY TAX REFORM AND CONTINUES SERVICES:

This can be done by eliminating all special-interest tax exemptions on all taxes in Wisconsin.  Everyone pays the same taxes or gets the same benefits.  Makes taxes fair in Wisconsin.  Provides funds for continuing services or even expanding services like health care by getting everyone to pay every tax.

C. PROVIDES ALL WISCONSIN STUDENTS AN EQUAL EDUCATIONAL OPPORTUNITY:

By funding schools with General Revenue on a per student and special needs basis we make educational opportunity fair in Wisconsin.

D. REDUCES THE STATE INCOME TAX TO 4%:

When everyone pays the tax we can reduce the state income tax rate to 4% on all income above poverty level income.  Or, the rate can be progressive for higher incomes and lower for lower incomes.  The only exemption would be poverty level income per person or family.  Or, we can provide more services at the old rates to more people.

E. REDUCES THE STATE SALES TAX TO 4%:

When the state sales tax is applied to all retail sales and services, the rate can be reduced to 4% and the property tax slashed.  Those who buy high priced steak or cars pay more.  Or, the rate can be left at 5% and more services provided.  Or, staple foods (fresh meats, veggies and fruits) can be exempt and processed foods taxed at the current 5% rate.

F. ELIMINATES GOVERNMENT-FOR-SALE. 

As all taxes and all benefits apply equally to all citizens, there is no benefit for a special-interest to lobby for exemptions or special benefits.

G. MAKES GOVERNMENT EFFICIENT:

Government can be made more efficient by assigning specific non-duplicating services to either local, county, state and federal government.  No duplication in services will save tax dollars or provide more needed services.

THE FAIR TAX PLAN:

The Fair Tax Plan is a blueprint for government reform, tax reform, education reform and campaign finance reform for any state that now uses regressive property taxes to fund education, counties and state programs; and/or for any state that allows special-interest tax exemptions or benefits for the few at the expense of others.

1. REPEAL ALL SPECIAL-INTEREST TAX EXEMPTION DEVICES:

Repeal all 300 plus Wisconsin tax exemption devices.  Special-interest tax exemptions do not benefit all taxpayers directly.  Call 1-608- 266-6466 for a copy of the 300 exemptions in the Wisconsin Dept. of Revenue booklet "Summary of Tax Exemption Devices" or go to www.revenue.wi.gov for a PDF file of the same report.  If lawmakers do not adopt reform, special-interests will continue to demand more tax exemptions and fewer and fewer of us will be paying the taxes.

Campaign Finance Reform should eliminate our politicians being beholden to large campaign contributors.  However, that is not happening.   On the contrary, the U.S. Supreme Court decision in Citizens United vs FEC grants corporations unlimted campaign spending rights and the right to spend and buy all the political campaigns they want or need to achieve their agendas.

Eliminating special-interest legislation means special-interests cannot buy tax exemptions devices or other benefits with large campaign donations.  It is the best campaign finance reform as it prevents government-for-sale.

No reason justifies exempting or benefiting one taxpayer, group or class at the expense of another.  Every taxpayer should be treated equally under state law.  The 14th Amendment, U.S. Constitution demands it!  AT&T exemptions, loan guarantees, real estate exempted from taxes, TIF districts, booths at the new Brewers stadium exempted from sales taxes and any special-interest benefit - all cost other taxpayers.  Something is wrong in Wisconsin when legislators exempt more than 35% of the real estate, 50% of income, and 50% of purchases from taxation.  Unless all our real estate, all our income and all our purchases are also exempt, it is unfair. 

Per our state Constitution, an exemption to a tax must be "reasonable".  It is reasonable only if it benefits all taxpayers immediately and directly because the 14th amendment of the US Constitution states that no state shall make any law that denies any citizen equal protection under the law.  If some of us have to pay a tax, all of us should - otherwise those paying the tax are harmed under state law.

Most taxpayers get a few exemptions.  Who gets the other 300 in Wisconsin?  Whose building or land or income or purchase should be exempt from tax?  Who should get a state benefit?  The answer is no one or everyone.  Why should anyone be exempt from any tax when such exemption makes someone else pay more? 

If everyone paid all taxes most taxpayers would pay 1/3 to 1/2 less in property, income and sales taxes. And, every benefit should benefit all citizens equally.  Or, we could get almost twice the services if everyone paid each tax. 

If prisoners, legislators, veterans, seniors, state employees, farmers, or the poor can get health benefits - all citizens should get the same benefit.  Medicare is a great benefit for some and would be a great benefit for everyone.  Universal health care would save a fortune in administrtive costs for health care providers.

Lawmakers can repeal all state tax devices.  In fact they could do this in one day.  Some exemptions require federal changes, or time for contracts to expire - unless those exemption devices were illegal under the law when granted.  Every special-interest will thus contribute to reform.  Many will scream if they lose a special benefit, but anyone not willing to pay their fair share can be escorted over the border.

The billions in special-interest benefits and tax exemptions are more than enough to pay for reform.  If eliminated the revenue could replace the entire property tax and reduce state income and sales tax rates or provide funds for needed services.  Slashed property taxes and cut income and sales tax rates will more than offset the few lost tax deductions for most.  The $100's in increased sales taxes will be offset by $1000's saved in property taxes and reduced rents.  Those who buy expensive food will pay more taxes.  Those who had many exemptions may pay more taxes, and they should.  Farm feed and fertilizer and manufacturing "raw materials" will remain exempt from a retail sales tax.  A sales tax on occasional equipment purchases will remain deductible to farmers and businesses as a business expense and be far less than the annaul property tax cost.


2. ASSIGN EACH LEVEL OF GOVERNMENT SPECIFIC DUTIES AND SERVICES AND A TAX TO PAY FOR THOSE SERVICES:

Waste occurs when towns, cities, counties, school districts, state and various departments provide police protection, snow removal, social services, nursing care, psychiatric help, etc.  By assigning each level of government, agency, and department specific non-duplicating duties and and services and a tax to pay for each level, this Plan will end all duplication and waste in administration and delivery of services and thus further reduce taxes.  All services could be maintained.  Or, more services could be provided by any waste savings.

A. Schools Will Be Funded With General Revenues:

Schools can be financed 100% by general state revenue by eliminating either the exemptions on our sales tax or on our income tax.  Any level of government can operate on an income or sale tax or revenue sharing.

Funding schools with general revenue on a per student basis will give each state student in the State an equal educational opportunity.  School boards would receive 100% of payments from general state revenue.  Local school board control can be retained.  Control did not change when general revenues picked up 66% of the costs and need not change with 100% funding.  Special needs can also be funded.

Schools would be helped.  They now hurt from a tax that pits the needs of our kids against angry property owners.  Education needs fair funding.  Education is our most important asset.  Each child in Wisconsin, regardless of where in Wisconsin, deserves an equal education opportunity.  A third of the state Supreme Courts have declared the local property tax unconstitutional as a means to fund statewide education as local disparities in total assessments make it impossible for many school districts to adequately fund basic educational needs of district children. 

In Wisconsin, in 2008-2009, spending per student varied from $8000 to $19,000 between school districts.  The average cost per child was $12,000.

B. Counties would deliver all social services funded by state and federal revenue sharing on a per person basis.  They could retain a 1/2% sales tax or other taxing authority.

C. Municipalities would provide local property related services via a small local property tax:

The property tax would be slashed on average 85% statewide.  Lawmakers do not have to property tax seniors out of their homes or farmers off their land to finance schools or counties or state programs (State forests, vocational schools etc).

Repeal school, education, county and state property taxes.  Reduce the property tax to a small local tax on all real estate in each city, town or village for local real estate related services (police and fire protection, garbage pickup, weed cutting, etc).  The local tax on a $150,000 home might be $500 to $1200 more or less depending on the municipality.  The local tax varies now because of the variance in services between townships, villages and cities.

Churches, Governments, Indians, and tax exempt organizations would pay their fair share to local governments for local real estate related services.  No one should have to pay for the local property service costs for the exempt buildings and land of others. 

Personal property taxes should either "all" be taxed (including machinery, stocks, bonds, boats and gold) or should "all" be exempted.

3. TAXES SHOULD BE BASED ON INCOME, ABILITY TO PAY AND FAIRNESS!

Taxes shifted to the property tax in the past will now be based on income, ability to pay, and fairness.  Those hurt most by the tax can keep their homes, businesses and farms.  State businesses and farmers can compete with other states with the high property tax off their backs.  Wisconsin's high property tax now costs far more farm and small business jobs than gained by all programs to attract new jobs.  Many good customers and jobs are now lost by sending seniors and manufacturers south for low property taxes. 

The billions saved in regressive property taxes can be first put into the economy to create a perpetual construction boom helpful to business, jobs, and State income and sales tax revenues.  Many will afford homes with payments absent huge property taxes.  Additions to homes, factories and farm buildings will mushroom.  Rents will drop 20% as landlords with big property tax savings compete for tenants.  More jobs and home ownership will cut social problems.

The concern that other types of revenue are not as stable as the property tax is foolish.  Governments and schools now operate on income and sales taxes and shared revenues.  Schools now get two-thirds of their funding from general revenues.  Perhaps government could assure budget stability by raising revenue one year and spending it in the next.  Or, governments could be allowed to create a reserve fund for hard times.

IN SUMMARY:

The Wisconsin property tax is unfair, regressive, out-of-date, 2 times the national average and can double every 10 years.  It hurts farmers, seniors, businesses and keeps young families from qualifying for home loans.  It forces one spouse to work to pay outrageous taxes.  Homes should be our castles - not our tax prisons.  Morally tax bills should not hurt people with no income, low income, or fixed income.  Taxes should not rise if a school is built or the needy are bused into the county.  Legally taxes should be based on income, ability to pay, and fairness.  Logically the property tax should only fund local real estate related services.

Wisconsin politicians offer "token relief" to get votes.  Michigan lawmakers slashed property taxes 50% in 1 day after a couple upstate farm school districts voted down their budgets rather than tax their citizens off their properties.  Schools didn't close because they changed their tax system - voters closed schools to change the tax system!  California slashed and froze their property tax years ago.  Their problems were a defense-based economy and immigration - not changing how they funded education.  Perhaps they do need to spend more on their schools, but that can be done with an income tax and/or sales tax. 

In many states the property tax is $4 to $5 per $1000.  In Wisconsin many seniors now pay 25% and farmers on average pay 40% of their net income to the property tax.  In comparison, the average state taxpayer pays a total of about 13% of their income to all state taxes.  In 1995 farmers paid 155% of their net income just to the property tax.  Their tax payments come from loans until they must sell their farms to pay their loans.  Many farmers find it hard to sell their farms, especially in Northern Wisconsin, because the farm cannot produce a living and pay the property taxes.


4. SHARE THIS MESSAGE WITH FRIENDS, FAMILY, EDITORS AND YOUR POLITICIANS:

A. EMAIL OR WRITE EDITORS:

OUR efforts will succeed if every voter demands action!  Writing editors of newspapers and magazines influences voters and politicians.  Tell how property taxes hurt you, your kids,  parents and grandparents.  Demand reform before the next election.  Send a copy to politicians too!


B. PHONE, VISIT, EMAIL OR WRITE STATE SENATORS & REPRESENTATIVES:

CALL 1-800-362-9472.  Leave messages with aides.  Don't take no for an answer.  Demand THE FAIR TAX PLAN reform to Stop Taxes On Property before the next election or vote for new politicians and Stop The Old Politicians.

COPY and EMAIL THIS PAGE MONTHLY TO STATE REPRESENTATIVES: www.legis.state.wi.us/leginfo/asmmail.asp

COPY OR EMAIL THIS PAGE MONTHLY TO ALL SENATORS: www.legis.state.wi.us/leginfo/senmail.asp

C. PHONE, VISIT, WRITE OR EMAIL THE GOVERNOR:
State Capitol, Room 115E, Madison, WI 53702.
Phone: 608-266-1212
Fax: 608-267-8983
EMAIL THIS PAGE M0NTHLY TO
wisgov@mail.state.wi.us

D. RUN THIS AD IN YOUR LOCAL PAPER:

E. ADD THIS WEB SITE - www.FairTaxes.com - TO YOUR WEB SITE PAGES:

F. SEE THESE LINKS & ADD THEM TO YOUR WEB PAGES:

Wisconsin Democracy Campaign - Join the effort for reforms in Wisconsin.

Throw The Rascals Out - Wisconsin incumbent politicians need to be replaced in order to get needed reforms.

G. Bring a law suit in state or federal court against Wisconsin and your county and local government claiming that special-interest tax exemption devices deny you and other citizens equal protection under the law per the equal protection clause of the 14th Amendment of the U.S. Constitution and case law in Bush vs Gore.

H. If you do nothing, nothing will be done.

If you do nothing, nothing will be done.

Thank you,

Gary Bahr
The Fair Tax Plan (FairTaxes.com)
Stop Taxes On Property (STOP)
1090 Severson Road
Belleville, WI 53508-9233

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