Wisconsin presently has a structural deficit of approximately $1.6 billion. The Democrat budget unveiled by Doyle does not even attempt to reduce government spending to close this hole, but instead raises taxes over $1.7 billion. That's BILLION, with a capital 'B'. In addition, the Democrat budget increases spending by hundreds of millions of dollars, which could well create future deficits if the Wisconsin economy does not result in a substantial increase in tax collections to the state treasury as a result of more people working, purchasing, etc. (increasing income tax, sales tax, etc. collections).
Let me repeat that again, over $1.7 BILLION in NEW TAXES in this budget. What could be worse for a recovering economy. That amounts to approximately $310 for each and every man, woman and child in this state. So, for a family of four, that equates to over a $1,200 tax increase on average over the next two years. Hope you gained a nice inheritance lately!
The Democrat Governor accomplishes this by taxing nearly everything that moves and some things that do not. To name just a few of the new taxes, the Democrat budget:
1. Increases the present 2% cap/freeze on local property taxes to 4% (and in some cases greater), resulting in an estimated increase statewide in property taxes of $350 million;
2. Creates a new 'sick tax' on hospitals, which will undoubtedly be passed on to patients, creating even greater health care costs, $400 million;
3. Creates a new energy tax on companies providing oil and gas, costs which will again be ultimately passed along to the consumers in the form of higher prices at the pumps $270 million;
4. Increases the Real Estate Transfer tax an additional $140 million, so I hope you weren't planning to buy a new home anytime soon;
5. Increases the tax on tobacco products to the tune of about $550 million;
In addition, the Democrat budget also increases the driver's license fee another $10, and vehicle registration fees another $20.
This is just what the public has been told by the Democrats about the Governor's budget and does not include any of the additional taxes or fee increases which are likely to be found as we begin to wade through the actual budget document over the next few weeks. The Governor's budget does include some modest, targeted tax relief; but these positive aspects are eclipsed by the massive tax increases.
In a few weeks, the Joint Finance Committee will begin holding hearings on the Budget and ultimately begin voting on various aspects of the budget. With split Houses, it would be surprising if an actual budget document was agreed to and passed by a majority of members on Joint Finance.
By contrast - stark contrast - the Assembly Republicans will now begin crafting the Republican budget. Because Wisconsin citizens are clearly already taxed more than enough, our budget will look to limit government spending to eliminate the budget deficit, not raise taxes
