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Published - Sunday, March 25, 2007

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Budget is the real ‘March Madness’


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It’s March Madness time in Madison as basketball tournaments and heated discussions about Gov. Doyle’s sharp elbows with the state budget are throwing off the capital’s equilibrium.

Many people enjoy bashing politicians, and sometimes their fiscal and ethical behavior make them easy targets, especially at budget time.
However, many constituents don’t make their job any easier when they and special interest groups lobby for enhanced or at least the same level of government services (for example, affordable health care coverage or school programs) while simultaneously demanding lower taxes, spending and a balanced budget. What’s a politician to do when presented with this classic tax-service paradox?

In my view, a wise politician (and no, that’s not an oxymoron) should always search for a reasonable and prudent balance between taxes and spending on desired services.

With that in mind, here’s my halftime analysis of Gov. Doyle’s proposed state budget, which has some fiscally conservative legislators like Assembly Speaker Mike Huebsch crying foul. Let’s check the highlights:

  • A new tax on big oil to help with transportation costs. Doyle insists he can collect this tax from huge, multinational oil companies while prohibiting them from passing the extra costs on to the gasoline consumer. Some business analysts are skeptical that such restrictions would even be legally enforceable much less practically accomplished. A real “air ball” of an idea.

  • Doubling the real estate transfer fee — how this makes buying and selling a home in Wisconsin more affordable and attractive is something you’ll have to ask Coach Doyle.

  • A new 1 percent tax on Wisconsin hospitals’ gross revenues. The theory here is that up to two-thirds of the cost could go back to hospitals in the form of increased federal Medicaid reimbursement rates while helping to expand health care coverage for the uninsured.

    The problem is the hospitals aren’t buying this theory and oppose the tax, predicting that eventually it will only increase health care costs for individual consumers and businesses.

  • A $1.25 bump in the cigarette tax. Doyle scores here if he can assure us that some of this extra revenue will actually go to tobacco-related health care costs and anti-smoking programs. Last time we soaked tobacco, the state merely used it to plug big deficit holes in the general revenue budget.

  • A plan to increase spending limits on municipalities and counties from

    2 percent to 4 percent. While this idea is a big hit with local officials feeling the pinch of tight budgets, what’s in it for the already overburdened local property taxpayer? One thing is an almost certain increase in your next local property tax bill. Doyle’s team should be called for charging here.

    Bottom line: Already squeezed middle class taxpayers are looking at the governor’s budget proposal, see lots of new taxes and spending, but wonder where the extra service benefits are for them. Let’s hope the Legislature will step up the defensive pressure for the taxpayer in the second half.

    Steve Gores is an educator, political activist and communications director of Citizens for Responsible Government: La Crosse County, a local taxpayers’ watchdog group.
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    Do you think..... wrote on Apr 1, 2007 6:49 PM:

    " that the disparity between Milwaukee/Lacrosse vs Dane County incomes might show this problem. Not everyone can work for the government, or contract for the government, or sub for the government, or sell to government. These people have purchased these voting blocs that they need to massage and it is reflected in the spending and the Tribune each and every day. They simple do not need your vote!!!! Quite honestly the other side of the fence has just given up as well. The status quo will not remain. The shortages are there and a day will come where we will not be 'able' to ignore them any longer. "

    This IS what the voters want wrote on Mar 27, 2007 10:16 PM:

    " It is widely accepted by government that if you are not complaining, then taxes aren’t high enough. Therefore, although it is true that Wisconsin enjoys one of the highest tax rates in the country, it must also be true that the majority of Wisconsinites do not believe they pay enough taxes because we continue to elect and re-elect those who continue to increase spending. "

    This IS what the voters want wrote on Mar 27, 2007 10:15 PM:

    " If we look at the last twenty years, there hasn’t been a single budget at the federal, state, or local level, which actually reduced spending. Instead, local governments and school boards continue to propose new programs and/or services that will increase spending and ultimately result in higher taxes. "

    This IS what the voters want wrote on Mar 27, 2007 10:14 PM:

    " Wisconsin has consistently voted for Democrats in the last five (5) presidential elections meaning Wisconsin citizens have supported presidential candidates that they knew would increase spending and raise taxes for almost 20 years. At the state level, the majority of Wisconsinites not only voted for Governor Doyle, knowing he would increase spending thus raise taxes, but also voted to put Democrats in control of the state senate. Locally, we elect and re-elect officials who continue to increase spending and taxes each year. "

    Where is the outrage? wrote on Mar 27, 2007 10:56 AM:

    " Are Gores and his CRG folks the only ones minding the store? I can't believe there isn't more outrage over this budget. GovDoyle (and don't forget our own Doyle problem here in LAX) won't be satisfied until we become a ghost town as industries and working class people give up and move out! "

    What Gores didn't tell you wrote on Mar 25, 2007 2:00 PM:

    " Government already TAKES 33% of what we earn and there isn't a single politician calling for actual REDUCTION and CUTS to the budget. The only people I am willing to vote for from now on are those who advocate cutting my tax burden from 33%. "

    Governor Doyle...... wrote on Mar 25, 2007 10:57 AM:

    " is busy buying votes for himself and his Party. Leave him alone! The only problem is we are all paying for it. "


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