3. Continue to exempt more and more from tax while those not exempted continue to pay a larger and larger portion of taxes.



THE SOLUTION = 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. ƒ

A. MAKES TAXES FAIR:

Repeal all 300-plus Wisconsin tax exemption devices, exclusions and credits. No one should pay a tax others do not have to pay on their income, purchases or property. 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 (14th Amendment, U.S. Constitution). AT&T exemptions, government loan guarantees, real estate exempted from taxes, TIF districts, booths at the new Brewers stadium exempted from sales taxes, lawmakers income exempted, bottled water and clay pigeons exempted from sales tax, and any special interest exemption - all cost other taxpayers.

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. An exemption is not "reasonable" if it exempts one at the expense of another.  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 deductions or exemptions like interest on a mortgage and property taxes. Who gets the other 300 in Wisconsin?     

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.

For a copy of the 300 exemptions in Wisconsin, call 1-608- 266-6466 and ask for Dept. of Revenue booklet "Summary of Tax Exemption Devices" or go to for a PDF file of the report. Not all tax exemptions or tax exclusions are calculated for various reasons. Look at each exemption device listed and ask who does it hurt? Does it benefit everyone equally, directly? If not, repeal it.  In my mind the only exemption should be poverty level income for each taxpayer or family. The income tax simply begins above the family's poverty level - it is a benefit that applies equally to all and directly benefits all taxpayers without making others pay more. 

If everyone paid all taxes most Wisconsin taxpayers would save 35% to 50% in taxes. 

Lawmakers can repeal all state tax exemption devices, exclusions and credits. Michigan did it in 1 day in the early 1990's. Some exemptions will require federal changes, or time for contracts to expire - unless those exemption devices were illegal under the 14th Amendment 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 exemption devices 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 and 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 now paying taxes.  The $100's in increased sales taxes will be offset by $1000's saved in property taxes and reduced rents. Those who had many exemptions will pay more taxes, and they should.

B. CONTINUES PRESENT SERVICES:

If everyone pays our taxes, we have the funds to continue all present services and expand necessary programs.

C. PAYS OUR DEBTS

If every one pays our taxes, we can pay our past debt in a few months.

D. STOPS TAXES ON PROPERTY:

When everyone pays their fair share of all taxes we can slash property taxes in Wisconsin an average of 85% to a local tax for local property related services only - like garbage pick-up, weed control and fire protection.

Property taxes hurt the economy as a disincentive for construction which hurts all related fields. As construction drives our economy it makes no sense to have a high property tax.

Reducing the property tax to a local tax for cities, towns and villages would allow most to buy a home and would create a perpetual construction boom that would employ more people than ever across the state.

Property taxes hurt 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.

Under the Fair Tax Plan, municipalities would provide local property related services via a small local property tax. 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.

The State's property tax is unfair, regressive, out-of-date, 2 times the national average and can double every 10 years.   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.  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 and eliminating exemptions to their taxes. 

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.

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 property 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 concern that other types of revenue are not as stable as the property tax is unfounded.  Governments and schools now operate on income and sales taxes and shared revenues.  Schools now get almost 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.

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

In 2007 property tax collected equaled $9.25 billion. If as legislators have claimed 35% to 50% of real and personal property is exempted or excluded from tax - taxing those properties would create even more income for this Plan. Regardless of how much property is exempt from real or personal property tax, it ought to be taxed if we are to continue these taxes. Even churches, governments and Indians should pay the local government the small local property tax for local services.

E. CREATES AN ECONOMIC BOOM!

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 and local property tax income.  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.

F: FUNDS COUNTIES FAIRLY:

Counties would be financed with their separate fairer income taxes and sales taxes, and/or by revenue sharing on a per person basis and their fees. Counties would deliver all social services. Total county and state income and sales tax rates should be 4% to 4.%% or less than present rates.

G: PROVIDES ALL WISCONSIN STUDENTS AN EQUAL EDUCATION:

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

Schools can be financed 100% by general state revenue. Any level of government can operate on an income or sale tax or revenue sharing dollar just as well as by a property tax dollar.

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.

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.

H. REDUCES THE INCOME TAX RATE TO 4%:

When everyone pays the tax we can reduce the state income tax rate to 4% on all income above poverty level income. 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. Rates could be progressive for higher incomes and lower for lower incomes. If counties or schools have a separate income tax rate, the total income tax rate for all levels of government should not exceed 4%.  INCOME TAXES: $6.7 billion in 2008 and at least $5.9 billion exempted.

REDUCES THE STATE SALES TAX RATE 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.

Farm feed and fertilizer and manufacturing "raw materials" for making products 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.

SALES TAX: $4.3 billion collected in 2008 and $4.82 billion exempted on sales and services.


J. ELIMINATES GOVERNMENT-FOR-SALE.

When 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. 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.

K. MAKES GOVERNMENT EFFICIENT:

Government can be made more efficient by assigning specific non-duplicating services to local, county, state or federal government; and a tax to pay for each level of government.  No duplication in services will save tax dollars or provide more needed 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 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 - or more services could be provided by any waste savings.

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

1. 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 unfair taxes and unfair property taxes hurt you, your kids, parents and grandparents.  Demand reform before the next election.

2. PHONE, VISIT, EMAIL OR WRITE LOCAL POLITICIANS, STATE SENATORS & REPRESENTATIVES:

CALL STATE LEGISLATORS - 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/or EMAIL THIS PAGE MONTHLY TO STATE REPRESENTATIVES

COPY and/or EMAIL THIS PAGE MONTHLY TO ALL SENATORS

3. PHONE, VISIT, WRITE OR EMAIL THE GOVERNOR: govgeneral@wisconsin.gov

State Capitol, Room 115E, Madison, WI 53702.

Phone: 608-266-1212

Fax: 608-267-8983

4. OTHER WEBSITES:

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

Throw The Rascals Out - Wisconsin incumbent politicians need to be replaced to get needed reforms, Elections Reform etc.

Business Coalition For Single Payer Health Care - Single payer best reform of health care.

Democratic Party of Wisconsin - Join a Party, Get involved!

Michael Moore America Is Not Broke

Progressive Dane - Dane County Progressives.

Progressives United - Organization for Progressives

Republican Party of Wisconsin - Join a Party, Get involved!

State of Wisconsin - Official site of Wisconsin Government


5. Make a poster!  Protest or Quietly Post Somewhere! Run an Ad!

Balance Budgets! Eliminate Exemptions!  FairTaxes.com

Wisconsin Not Broke! It Is Being Broken!  FairTaxes.com

Close Exemptions! Open WI to All!  FairTaxes.com

A Better Budget! A Better Wisconsin!  FairTaxes.com

Schools & Teachers Are Important Too!  FairTaxes.com

On Wisconsin!  Fight On For Her Fame!  FairTaxes.com

Just Get Everyone To Pay Our Taxes!  FairTaxes.com

Make Taxes Fair!  Continue Services!  FairTaxes.com

Pay Our Way!  A Better Way!  FairTaxes.com

Stop Property Tax!  Create A Boom!  FairTaxes.com

Eliminate Government!  For Sale In Wisconsin!  FairTaxes.com

WI Open For Business?  Open WI For All!  FairTaxes.com

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

Gary Bahr

Stop Taxes On Property (STOP) with The Fair Tax Plan

FairTaxes.com

Belleville, WI 53508-9233