The state budget passed by the Democrats in
a legislative committee and to be voted on in the state Assembly next
week is the worst public policy document in the history of the state of
Wisconsin. Despite that, I can tell you what’s wrong with it in just
one sentence.
The Democratic budget will drive high-income earners out of the state
by raising the income tax and the state’s tax on capital gains while
forcing further layoffs at major manufacturers like Harley-Davidson by
increasing the taxes on their out-of-state earnings and will drive up
the cost of senior living by doubling the state’s tax on nursing home
residency and gouge motorists by costing them 6 cents for every gallon
of gas with a new oil franchise fee along with exploding the cost of
telephone service by creating a new $9-a-year tax on every single
cellular or landline phone which will be especially tough on university
students because University of Wisconsin tuition is being raised 5
percent while financial aid is being slashed for all students except
illegal immigrants because they will be given in-state tuition at the
same time the state becomes a lawsuit haven with the toxic provision
that individuals who are only 20 percent at fault can be forced to be
responsible for 100 percent of the damages in any civil award which will
benefit trial lawyers who also get a windfall with the new requirement
that motorists increase their auto liability insurance which will raise
premiums at the same time property owners are going to be hammered by
massive local tax increases as their communities deal with major cuts in
state aid but have to pay for the doubling of the state garbage tax on
landfill dumping which will only partially be offset by earmarks like
$43,000 for recycling bins in Wrightstown which seems like a small
amount when compared to the creation of a Regional Transit Authority in
southeastern Wisconsin which is being funded by an increase of a full 1
percent in the Milwaukee County sales tax with half the money going to
the parks system although the biggest increase of all will be in school
property taxes because the budget gets rid of the so-called QEO or
Qualified Economic Offer which put limits on annual increases in teacher
pay which will now be passed on to taxpayers because revenue limits on
local school districts will be increased with a series of new exemptions
at the same time the brand new hospital tax that was enacted a mere four
months ago is raised another 20 percent before its ink was even dry just
as social policy is radicalized by allowing all gay and unmarried
heterosexual couples to tap lavish state health insurance benefits by
registering their domestic partnerships even though those couples will
have to pay dramatically higher electric and gas bills along with the
rest of us because of the big increase in the state low-income energy
assistance program which seems like a crime but the actual criminals
will be getting a giant break because the budget will release thousands
of felons from prison before their sentences are up while development is
going to be slowed on many new construction projects because of the new
requirement that all workers be paid union scale on any project that
receives public subsidies even as a terrible new provision is created
that will result in the unionization of every single home health care
worker in the state which will make it much harder for seniors in need
of services to remain in their own homes and will drive out of business
many of the smaller home health care agencies but even younger people
are hit hard with a big tax on all digital downloads even as the cost of
both birth and death certificates is doubled and the tax exemption for
health insurance is eliminated.
Other than that, the budget is just fine.
* * *
The most indefensible part of the Democrats’ money grab is that
most of it is in the form of hidden fees that consumers won’t even
know they are paying. The creation of a single union for all home health
care workers, for example, will drive costs for small agencies that
provide in-home care to elderly through the roof. The average senior
will never know it is Jim Doyle and the Democrats doing the gouging and
not the agency.
Likewise, the doubling of the state landfill tax is a major new cost
for municipalities that will result in higher property taxes. Local
mayors and village presidents will get the heat for passing along a cost
mandated by the state.
Ditto for the oil franchise fee, which will increase the cost of a
gallon (about $1 for every 17 gallons) and the property tax increases
that will result from the end to the caps on teacher pay. The provision
that makes individuals liable for up to 100 percent of damages when they
are only minimally responsible will drive up insurance premiums while
the motorist who sees car insurance rates go up because of the higher
minimum coverages will no doubt blame the greedy insurance companies and
not the state. Even the utility and telephone tax increases will be
buried in bills that consumers never bother to read, especially now than
many pay them online. The digital download tax will be added to the cost
of every purchase with the state’s new cut being largely invisible.
This is gutless governing. Democrats have made this state a tax hell
and are now determined to make it even less affordable but don’t have
the guts to do their taxing in the open.
(Mark Belling is the host of a daily WISN radio talk show. His
column runs Wednesdays in The Freeman.)