Tweet of the Day - 7/27/15


Taxing Jurisdiction
|
2011 - % tax change
|
2012 - %tax change
|
State
|
4.4%
|
-0.6%
|
County
|
9%
|
1.5%
|
Town
|
1.1%
|
2.8%
|
School District
|
-0.9%
|
4.5%
|
Tech School
|
5.1%
|
9.2%
|
Net property tax
|
4.5%
|
3.5%
|
|
Taxing authority
|
2011 - % tax
change
|
2012 - % tax change
|
2013 - % tax change
|
2010 to 2013
% tax change
|
|
State
|
4.4%
|
- 0.6%
|
2.5%
|
6.4%
|
|
County
|
9%
|
1.5%
|
4.7%
|
15.9%
|
|
Town
|
1.1%
|
2.5%
|
- 0.7%
|
2.1%
|
|
School District
|
-.0.9%
|
4.5%
|
6.2%
|
10.0%
|
|
Tech School
|
5.1%
|
9.2%
|
2.7%
|
12.2%
|
|
Net property tax
|
4.5%
|
3.5%
|
3.4%
|
11.8%
|
PolitiFact jumped on that claim quickly and easily pointed out that Walker again was caught in yet another "Pants on Fire:" level lie:Walker said that with a bill bringing $100 million in property tax relief, "the typical Wisconsin homeowner will save approximately $680 over four years."And they are actually being generous with their findings.
The claim in an e-newsletter strongly suggests $680 in hard savings from that tax relief bill, or at the very least during Walker’s four years, but we found nothing to back up that number or anything close to it.
You can only get to it using a rough hypothetical scenario based on some big assumptions, and can make a case for $239 in four-year savings compared to the four years prior to his term.
But Walker’s newsletter doesn’t disclose that his number is hypothetical, misleading the reader into thinking that the median tax bill actually has dropped by $680.
We rate his claim Pants on Fire.
Long time readers of Cog Dis are well aware that every decision Scott Walker makes is weighed on its impact of his next political campaign. The minute Walker took office as Milwaukee County Executive, he started running for governor. Every action he took was calculated to further his aspirations to be governor.Gov. Scott Walker said Monday that his policies had saved Wisconsin taxpayers more than $1 billion so far - savings largely achieved by the Republican governor and lawmakers repealing most public workers' union bargaining and effectively lowering their compensation.I also pointed out that our taxes, like those of many others, actually went up significant amounts. If taxes went down or even just stayed the same, they were due to a drastic drop in property values. In the Milwaukee area, some properties dropped by as much as 30% in value.
Much of those savings - more than three-quarters of a billion dollars - could be verified, such as state and local workers picking up more of the tab for their health care and pension. But the figures also included a significant amount of savings for local governments that could not be verified.
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I still find his last bullet point a most annoying lie. I know of tens of thousands of public employees who wish they were allowed to keep more of they money they earn. And given the way the state's economy has tanked since the passage of Act 10, I bet there are tens of thousands more private sector employees who wish that too, so that they could have kept their jobs.This week, we kicked off the “Tax Relief for Wisconsin” tour at Northcentral Technical College in Wausau and at the Boys & Girls Club of Greater La Crosse and called on members of the Assembly and Senate to support the 2013–15 Biennial Budget’s tax relief package totaling nearly $1 billion.
Everyone in Wisconsin who pays income taxes, will receive a tax rate cut under this package, and the largest rate cuts will be for those making between $15,000 and $50,000 per year. Middle-class families deserve a break, which is why I'm calling on members of the Assembly and Senate to pass a budget providing nearly $1 billion in tax relief for the hardworking taxpayers of our state.
Highlights of the tax package, which passed the Joint Finance Committee last week, include:
Our tough, but prudent, decisions resulted in a surplus of over half a billion dollars, and I believe the surplus should be returned to taxpayers. We've accomplished a great deal to improve Wisconsin's business climate and providing this relief will continue to make our state more competitive.
- A total income tax cut of $650 million over two years and total tax cuts in the budget approaching nearly $1 billion.
- Every Wisconsinite, who pays income taxes, will receive an income tax rate cut.
- A typical family of four with an income of $80,607 will receive a tax cut of $345 for tax years 2013 and 2014.
- The largest income tax cut in 14 years.
- Hardworking Wisconsin families should be able to keep more of the money they earn, so they can build a brighter future of their choosing for their children and grandchildren.
Here is how the tax cut would be distributed among income groups:Even worse, the reason that Walker is giving for this giveaway to the wealthy - job creation and economic stimulation - is also so much poppycock:
- The top 5% of earners alone, a group with an average income of $392,000, would receive more than 1/3 of the benefit of the income tax cuts.
- The top 20% of earners, a group with an average income of $183,000, would receive more than 2/3 of the benefit.
- The bottom 60% of earners – those making $60,000 a year or less – would only receive 11% of the benefit of the income tax cuts.
- The 20% of the Wisconsinites with the lowest incomes would receive just two cents out of every $100 in individual income tax cuts under this proposal.
"The governor has argued that by putting more money in people's hands, the tax cuts will spur economic growth in Wisconsin," said Andrew Reschovsky, a UW-Madison professor of public affairs and applied economics. "There is no evidence that the tax cut will do much to encourage growth and job creation."Representative Dale Kooyenga, who authored this monstrosity, admits it's top heavy, but falsely claims that there is nothing that could be done to make it fairer to low income families:
Mark Schug, a UW-Milwaukee professor emeritus who now consults in the area of economic education, agreed that such a cut is not likely to be an economic boost.
"I do tend to think that the income tax reduction is not sufficient," Schug said.
Earlier this year, Governor Scott Walker proposed his own income tax cut ,which was slammed for mostly benefiting the wealthy (in large part because an Institute on Taxation and Economic Policy (ITEP) analysis showed that it was tilted that way). The Governor’s proposed income tax rate cuts were expected to cost the state $343 million over two years; Representative Kooyenga’s would cost $760 million in the upcoming budget and $914 million in the 2015 budget.Actually, there are ways to make it more balanced and fairer - as well as more beneficial to the economy. One could start by simply restoring the cuts made to the Earned Income Credit and Homestead Act, which had raised taxes on the poorest of the poor in this current budget.
And it’s not just costly, it’s regressive. As the lawmaker himself concedes, “[i]t is nearly impossible to create a tax reform or tax cut that is not going to disproportionately lower taxes for upper-middle-class and rich taxpayers,” and a new ITEP analysis of Kooyenga’s plan shows his is no different. ITEP ran the numbers for the Wisconsin Budget Project (WBP) the impact of the Kooyenga income tax plan was shown to be even more skewed to the wealthy that Governor Walker’s...
Thank you Rep. Dale Kooyenga. He's an accounting wiz. Aside from the $92 million in taxes currently not collected, would you bank on that? Forget about the nation’s economic growth projections by the Federal Reserve (negative growth) and the World Bank’s new projection (1.9%). Kooyenga assumes growth will be at 3.3%. “We’re in real trouble” says GOP Sen. Dale Schultz. No kidding.Is it any wonder that Walker's campaign tour is not open to the public. The vast majority of us who are going to be hurt by the Teapublicans' maleficence would have some things to say to him which wouldn't fit in at all with the image that his campaign is trying to spin.
But don't back up that Brinks armored truck to haul off your share of the wealth.* You won't even need your kid's piggy bank for it:For example, a family of four with taxable income of $25,000 would see their state income tax bill go down by $6. At $50,000, the savings is $54; at $100,000 it’s $138; and at $200,000 the savings is $270.That really pales in comparison to what Walker did for his corporate sponsors in the current budget:
"At first blush, the proposed tax cuts sound like they will help moderate-income families but the primary effect is to help the wealthy,” says Jon Peacock of the Wisconsin Budget Project.
Peacock notes that more than half of the projected $172 million in income tax cuts annually would go to the upper 20 percent of state residents.
“This just exacerbates the problem that the rich pay a much lower percent of their income for state and local taxes than lower-income Wisconsin families,” he says, noting a recent national report on that issue.
Actually, Walker’s 2011-2013 budget did use tax credits to target a specific group: factory owners and their investors. A domestic production tax credit that kicks in this year will deliver an estimated $360 million in tax savings to manufacturers over the next four years and some $130 million each year thereafter, according to the non-partisan Legislative Fiscal Bureau.Considering that the median household income is about $50,000, that means most of us might save a buck a week. Hoard up those savings for a full month and you might, just might, be able to buy a gallon of gas. I say might, because under Walker's reign of economic terror, incomes keep dropping.
Last summer, the state Legislature reduced the amount of money low- income families can receive in tax credits by $56.2 million.Likewise, it offers no relief for the fees that Walker raised through the roof in the last budget and wants to rise even higher in this budget.
That places Wisconsin among only a handful of states that will effectively raise taxes on their poorest residents in 2012, according to a recent study by the Center on Budget and Policy Priorities, a nonprofit think tank.
"At a time when low-wage workers are already struggling, this makes it that much more difficult (for them) to feed their families and pay their utility bills," said Jon Peacock with the Wisconsin Council on Children and Families, an advocacy group that opposed the changes
|
Taxing
Jurisdiction
|
2011
- % tax change
|
2012
- %tax change
|
|
State
|
4.4%
|
-0.6%
|
|
County
|
9%
|
1.5%
|
|
Town
|
1.1%
|
2.8%
|
|
School District
|
-0.9%
|
4.5%
|
|
Tech School
|
5.1%
|
9.2%
|
|
Net property tax
|
4.5%
|
3.5%
|
So this wasn't a "union costs exploded for 2011-2012" problem. This was a "budget cuts from Scott Walker and WisGOP in Madison are screwing us on the local level" problem. In fact, the original budget proposal from the guv resulted in a drop of Kaukauna's available revenues of $2.16 million (a bit under 5% of their total), and $2.75 million from the state (check out your favorite district's cut here, Kaukauna's on Page 5). The unions responded by proposing $1.8 million in concessions, which combined with the district $345,000 in surplus funds from 2010-11, would have taken care off all of the state cuts put into Kaukauna's budget. The Kaukauna School Board turned them down and asked for layoffs of 14.5 full-time positions instead, and decided to wait on the Legislature and State Supreme Court to do the dirty work of putting the screws on the teachers, and hope for large numbers of teacher retirements.The lie was picked up on nationally and made even clearer:
Which is exactly what happened. The Kaukauna teachers will now have to chip in over 18% of their pay in health care and pension contributions, with no corresponding increase in salary. And for all the talk about "Kaukauna class sizes going down," even Kaukauna School Board President Todd Arnoldussen admits it's projected class sizes being reduced, and those are reductions from huge INCREASES THAT WERE PREVIOUSLY PROJECTED. In other words, little to no change will result from what students would have seen this year. Class sizes DID NOT GO DOWN, as much as the deceptive press releases may indicate.
And I'm not even bringing up the fact that I wish Kaukauna good luck in attracting and retaining quality teachers when they're getting a huge cut in their take-home pay. Strangely, those "free-market" types that are always bashing public educators leaves out the free market reality of lower pay = lower quality. (But when has consistency and reality ever been part of the equation for those haters, anyway?)
But here’s the thing: The collective bargaining ban, in and of itself, was not responsible for achieving these savings and this surplus. As the Appleton Post Crescent reports, the teachers union had already offered up financial concessions that would have produced almost identical savings and an almost identical surplus.When the recalls came, Walker and company tried to point at Kaukauna again as their flagship on how the budget was working. Meanwhile, those of us on the left repeatedly pointed out that any savings were one time deals and the long term costs would far exceed any savings, real or pretend, that Walker might tout.
What’s more, the use of this one district to declare Walker’s policies a success is almost comical in its cherry-picking. There are 424 school districts in Wisconsin, and as the AP recently noted, Walker’s policies mean draconian budget cuts to 410 of them, with labor officials and school districts predicting increased class sizes and layoffs.
Walker’s premature declaration of victory — and the right wing echo chamber’s flacking of it — could look awfully silly when the full bill for his policies really comes due. And the notion that this one school district’s fiscal success is in any way a referendum on the most controversial aspect of Walker’s union busting proposal is laughable. This fight has never been about public employees’ unwillingness to make fiscal concessions — and always about stripping them of their rights.
The owner of a $150,000 home within the Kaukauna and Little Chute school districts will see annual costs jump $80 and $61, respectively, if the home’s value increases or decreases at the same rate as the school district’s projections.So those of you in the Kaukauna School District who voted for Walker, not just once, but twice, congratulations to you. You won the Walker Booby Prize of higher taxes and a poor education for your children.
After several years of cutting spending, the Kaukauna Area School District no longer had any fat to trim and will have to increase the tax levy for revenue, said Bob Schafer, business manager for Kaukauna. Because the district spent less than it budgeted, state aid was reduced by more than $850,000, according to figures from the Department of Public Instruction.
“Our biggest dilemma was No. 1, the dropping property values, and No. 2, the amount of state aid,” Schafer said. “We lost a lot of state aid this year.”
Kaukauna also underspent their budget last year by about $1.5 million due to healthcare and retirement adjustments, which meant a smaller state aid payment for the 2012-13 year.
“That does have a ripple effect in your aid payment for the following year,” Schafer said. “That was a big factor for us.”
Still, the situation could have been much worse, he said. Kaukauna had the option of taxing homeowners up to $10.13 per $1,000 of home valuation, but the Board of Education voted instead to take money out of a different fund and set the tax rate at $9.33.
“Yes, it does raise property taxes, but everybody feels that this is what’s best for the kids and the community,” Schafer said.
In a disturbing sign the state economy remains in crisis, property values in Wisconsin have fallen for the fourth year in a row and showed the largest one-year drop in decades.They're saying that the reason for this continuing bottoming out is due to personal income levels not rising as fast as real estate values. Now, who was it that "dropped a bomb" in the form of Act 10, slashing the salaries of tens of thousands of Wisconsinites immediately and causing a ripple effect throughout the state?
This news accompanies a surprising jump in the state unemployment rate announced on Thursday. The jobless rate rose in July to 7.3 percent, up from 7 percent in June, with the state losing an estimated 6,000 private-sector jobs for the month.
Meanwhile, figures released this week by the Department of Revenue showed total property values in Wisconsin down 3.2 percent for 2012, the largest drop in 50 years. That includes a 4 percent drop in residential property and a 1.5 percent decline in commercial property values.
The roughly $2 billion in new residential construction was more than offset by a $15.3 billion erosion in the value of existing homes. (See attached report.)
Overall property values in the state -- which includes residential, commercial, manufacturing and agricultural uses -- are now down 8.4 percent from their peak in 2008. Total values are estimated at $471 billion, down from a peak of $514 billion four years ago.
Todd Berry of the Wisconsin Taxpayers Alliance says the drop again in values, especially on the residential side, came as a surprise since most observers thought the real estate market had bottomed out last year.
Falling property values do not mean that property taxes will go down, however. Local units of government may have to increase tax rates to make up for the difference in property values, Berry says.It's working, my ass!
What can happen, Berry says, is that taxpayers whose property has risen in value may end up paying a larger percentage of a community’s taxes than an owner whose home value has fallen.
“That is where you can see a shift in the levy,” he says.