Oppose Gov. Doyle's Tax-Hiking Budget!

Wisconsin, like most states, currently faces a large budget deficit. There are a variety of ways to address such a shortfall, and unfortunately Gov. Doyle has placed his bet on tax hikes and federal bailout money. Incredibly, he's proposing to increase overall spending in his FY 10-11 budget by $6 billion, salivating over the billions he stands to receive from President Obama's stimulus plan and the projected increase in revenue from a smorgasbord of tax increases.

The budget includes an income tax increase on those who earn more than $300,000 a year. The burden of this hike will fall squarely on the shoulders of Wisconsin's small business owners and job providers. There is also an additional $272 million tax on oil company profits, which will undoubtedly raise the price at the pump for the state's drivers. A 75-cent-per-pack increase in the cigarette tax would boost Wisconsin's rate to $2.52, the third-highest in the nation. This is yet another way Doyle is sticking it to small business, as retailers will see even more customers jump the border to take advantage of lower cigarette prices in other states.

In all, the tax hikes approach $2.5 billion over three years, and the budget continues to grow. As Wisconsin's families tighten their belts during the economic downturn, government continues to spend freely, with several agencies getting more money than they originally requested for the next two years. Gov. Doyle and the politicians in Madison need to receive a strong message from their constituents. E-mail and call your elected officials now and tell them to oppose this bloated budget now -- no more excuses!

Sample Letter for Campaign

Subject: No tax hikes in the budget!

Dear [ Decision Maker ] ,

As a Wisconsin voter and taxpayer, I urge you to oppose the tax hikes in Gov. Doyle's recent budget plan.

In these tough economic times, the last thing I can afford is to give more of my hard-earned money to politicians in Madison. I find it hard to believe that while Wisconsin's families are tightening their belts, the government continues to grow. Our deficit is a symptom of decades of overspending. It should be solved by budget cuts, not tax hikes or federal bailouts.

Please stop this madness and start making responsible choices. We will remember those who stand up for taxpayers, and those who don't.

Sincerely,

Campaign Launched:
March 15, 2009

Background Information

The budget deficit in Wisconsin is currently projected at $5.7 billion, equivalent to over 10 percent of all spending in the current FY 07-09 budget. Despite that fact, the Governor has shown no inclination toward cutting spending. The FY 10-11 budget request increases from $56.7 billion to $62.7 billion in spending. Unfortunately, not only is government getting bigger, but this expansion is predicated on massive tax hikes and an irrational reliance on government bailouts. Wisconsin citizens will be poorer because of it, and they will almost certainly face another deficit in two years when the flood of federal money has dried up.

High earners will be subject to a 7.75 percent tax on income over $300,000. The Governor's office projects that this will yield over $310 million for FY 2010-2011, but as past history on the federal level and in other states has shown, these figures could prove overly optimistic. Small-business owners and job producers could relocate out of state, taking potential revenues with them. The capital gains tax exclusion will be reduced from 60 percent to 40 percent, further weakening incentives for investment.

Digital downloads will be taxed to the tune of almost $11 million over the next two years. Sometimes dubbed the "iPod tax," this is the first step toward tax encroachment on the Internet, one of the last frontiers of the free market.

Cigarette taxes will be raised by 75 cents-per-pack to $2.52, the third-highest rate in the nation. This punitive increase hits Wisconsin's poor the hardest, as they are more likely to smoke and money spent on cigarettes represents a greater portion of their income. However, the damage extends to non-smokers as well. It is devastating for retailers, who will see more of their potential customers crossing state lines to buy cigarettes (along with any food and gasoline they pick up along the way). Also, cigarette tax revenue tends to decline over time, because the more something is taxed, the less of it people consume. This leads to future deficits, which will likely be closed by increases in other taxes.

Finally, Wisconsin's families may be paying considerably more at the pump. The budget includes a $272 million levy on oil company profits (which are already subject to taxes). We all know who pays for schemes like these -- the consumer, in the form of higher prices at the end of the line.

We would never call this budget acceptable, as government's perpetual growth has spelled disaster for Wisconsin at every turn. But in the current climate, it is especially ruinous. Contact your legislators and the Governor and tell them that you will not tolerate tax-and-spend policies in Madison!