Apparently what the Wisconsin GOP and Governor Walker are going to try to sell to the state’s voters is a line of “lower property taxes and more money for schools”, if we’re to believe the latest bit of propaganda they’re trying to throw out over the radio waves.
While the new money for schools is nice, let’s not forget that all of that increase is based on per-pupil aid for this year, and given that more money is being funneled away from schools and into vouchers, the overall increase for many schools won’t even keep up for inflation (and that’s after several years of cuts, let me remind you).
Also not mentioned in those ads is that much of the “lower property taxes” are due to WisGOP decisions to spend more of our tax dollars to make that property tax cut happen.
Change in GPR to lower property taxes, FY 2019 vs FY 2015
School Levy Credit +$192.6 million
Lottery payment to retailers +$40.0 million
Forestry tax +$91.6 million
TOTAL COST OF PROP TAX CUTS $324.2 MILLION
This is extra state spending with no increased tax dollars set aside to pay for these gimmicks. It just takes from the current pot of available money, and relies on adding revenues from continual economic and population growth. If we get hit with a recession or some other needed spending ends up increasing (like if Congress screws over the states with budget cuts), then there’s even less money to deal with it because we’re blowing all these funds to give the GOP a lame talking point.
These figures aren’t including the $406 million a year we give to Tech Colleges to reduce property taxes, and the $74.4 million we’ll be sending to municipalities to make up for the cut that GOPs put on the personal property tax for businesses. Add those costs to the list, and we’re spending over $800 million in Fiscal Year 2019 alone.
Think we could fix a few highways or hire a few teachers for our schools with that $800 million? Or maybe give a bump in shared revenues to local communities and keep them from reducing services or to give them a better chance of improving social goods like parks and transit. And you could still have property tax limits to hold those homeowner bills in check.
These WisGOP gimmicks have directly led to numerous additional fees and local taxes that have been put in Wisconsin communities in recent years. The most obvious one has been the wheel tax, which is tacked onto your state registration fee for vehicles you own, and has become an increasingly common source of revenue for communities so they can fix roads and stay under the state property tax caps.
We’ve also seen Wisconsin counties that previously didn’t have a 0.5% sales tax have to give in and add it. Kewaunee County added a sales tax this April, Brown County will do so starting in January, and Calumet County’s Board just approved of one this week to start in April 2018. In addition, Manitowoc County is considering putting in a 0.5% sales tax for next year, and Racine County may well add one to help defray the costs of the Fox-con.
Even worse, those extra sales taxes and wheel taxes aren’t items that are generally written off on your federal taxes, while property taxes are (well, at least until Trump and the GOP Congress screws us out of the deduction as part of “tax reform”). So while lower property taxes might make for a nice headline in December, it’ll reduce your tax refund later that winter.
Walker and the WisGOPs are hoping that the average rube in Wisconsin won’t notice this shell game that is being played. But good luck with that when everyday Wisconsinites end up paying more to get their license plates or buy something at their stores (you in the 920 are especially going to feel this in 2018). On top of that, you’ll definitely feel the continued deterioration of the roads and the lessening of local services.
And when those things happen, think back to the hundreds of millions of dollars that the Wisconsin GOP is throwing out the window just to say “Your property taxes are $1 lower than 4 years ago.” Then get very angry that these people are that careless and cheap.
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