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Not so fast on tax hike talk
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WED., NOV 19, 2008 - 4:27 PM
Not so fast on tax hike talk
A Wisconsin State Journal editorial
State leaders should concentrate on cutting spending and collecting taxes already owed instead of pitching an across-the-board tax hike.

Two prominent Democratic leaders -- party chairman Joe Wineke and former Gov. Tony Earl -- have urged higher state income taxes in recent weeks to help fill a giant state budget hole.

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Earl led the effort back in 1983 to add a temporary 10 percent surcharge to state income and corporate taxes and make permanent a 1-cent-on-the-dollar increase in the sales tax. That was the last time state government faced a similar budget deficit and national recession.

But voters promptly booted Earl, dubbed "Tony the Taxer," from the governor's office in the next election.

Earl now suggests something similar must be done to fix the state's latest financial crisis.

Wineke, a former state senator, has similarly called for a broad income tax hike next year as a temporary solution.

The good news is that neither Earl nor Wineke are elected officials anymore. And Wineke, who is stepping down as party leader, acknowledged his idea is unlikely to fly. Let's hope he's right on that count.

Struggling families and businesses can't afford a big tax hike when they're already having to do with less.

Incoming Assembly Speaker Mike Sheridan, D-Janesville, set a more responsible tone last week. Talk of possible income or sales tax increases is "way farther down the road than I'm prepared to go," Sheridan said.

Gov. Jim Doyle has rejected across-the-board tax increases in the past. He should maintain that stance and instead concentrate on spending cuts, delays in tax breaks and collecting the income the state already has coming.

For example, online retailers located out of state largely avoid charging Wisconsin sales taxes on products they sell to consumers here. Consumers are supposed to track and voluntarily pay taxes to the state for such purchases. But most people don't.

Wisconsin could collect tens of millions of dollars -- money already owed -- by joining a multi-state effort to streamline the process for online retailers to collect state sales taxes voluntarily. Many retailers are already participating in the effort.

So the state's budget strategy should be:

Cut what you can. Delay what can wait. Grab those dollars that are already yours.

Don't even talk about a punishing tax hike until every other avenue is exhausted.


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