Opinion

Sale away

In a move that could restructure taxation in Wisconsin, some state officials are looking to remove several sales tax exemptions in order to accrue additional money to help fund public schools and lower property taxes.

The current Wisconsin sales tax rate stands at 5 percent — 23 other states and the District of Columbia mandate higher sales taxes — with a majority of counties imposing another half-percent sales tax to bring in additional funding. Nine other states have about the same sales tax level, and 17 states have lower or no sales tax.

Rolling back exemptions could transfer the burden of public school funding from property taxes by generating several billion dollars in revenue. According to the Milwaukee Journal Sentinel, the two separate proposals — spearheaded by state Sen. Jon Erpenbach, D-Middleton, and the Wisconsin Counties Association — would maintain sales tax exemptions on food, drugs and health care, shelter and agricultural services. Under the new proposal, computer, legal, personnel and accounting services are some of the exemptions that could soon be eliminated.

While we need more information on how this plan would be enacted and carried out, we support the reevaluation of sales-tax exemptions. As Mr. Erpenbach told the Milwaukee Journal Sentinel, some of these exemptions are no longer "justifiable" and are remnants of past legislatures and administrations. We believe lawmakers should reconsider the necessity of many of these exemptions.

Though the proposal has garnered opposition from groups like the Wisconsin Manufacturers and Commerce, it could save state homeowners thousands of dollars in property taxes each year if passed. Furthermore, the plan could be the salvation of poorer school districts, like the Milwaukee Public School system, where extremely low property tax revenue has crippled K-12 education for years. By shifting a significant portion of public school support — approximately $3 billion under Mr. Erpenbach's plan — away from homeowners, schools in Wisconsin could finally be on a more even playing field.

Whether the plan would raise taxes is a matter of mere semantics: Opponents claim it would increase an already unbearable tax burden, but Sen. Erpenbach contends this increase would be offset by the savings property-tax payers would see each year. Either way, it is an issue that warrants a closer look, and we commend Mr. Erpenbach for putting it on the table.

Have a thought? We welcome your input, but please be polite and stay on topic wherever possible. Your comment may be deleted if it is inappropriately off topic or promotional or if it is unnecessarily rude or contains personal attacks. We may delete comments for other reasons as well. Just keep it simple and focus on your points as respectfully as possible.

We allow and encourage comments employing satire, wit and irony to make points. Do not flag comments just because you disagree. Flagged comments will be immunized from further flagging unless they stray far from the guidelines and do not add to the discussion. Before flagging a comment you think is offensive, consider your time might be better spent rebutting it than censoring it.

blog comments powered by Disqus

4 older comments

user-pic

Shift the tax burden from property owners to people buying food and clothing?

I’d be willing to bet big money that the landlords will put the savings into their pockets instead of lowering rents.

user-pic

Going from “not taxed” to “taxed” is an increase. Call it what it is.

user-pic

Why is it that I only hear the rich complaining about “unbearable tax burdens?”

The state has a lower sales tax than 23 other states, higher property taxes than most states, better public schools and universities than most states, a higher standard of living than most states, lower crime than most states… do you get my point?

The ONLY thing in that list is higher property taxes. I think it’s a fair trade.

user-pic

To the first poster: It says in the piece that food would still be exempt under the proposal.

Donate