Unleashing Wisconsin's Frugality

By Steven Pigeon

Wisconsinites have a reputation of being frugal. Some, like myself, take great pride in this earned reputation.    However, for many Wisconsinites frugality has become a necessity in an effort to avoid an increasing tax burden that is being placed upon them by local governments.  This is especially the case in Milwaukee. 

Recently, Milwaukee Major Tom Barrett has expressed a desire to permanently extend a tax imposed on cell phones, which was used to successfully update 911 call center technologies.  This $0.43 monthly tax is set to expire November 30th.  It is not the minimal cost of the tax that is upsetting.  It is upsetting that local officials are seeking to ignore the original intent of the legislation and extend a tax indefinitely and spend the money for purposes beyond that of the 911 call center.  Similarly, there have been rumblings that the Miller Park stadium tax will be extended after the stadium paid off in order to supplement local government spending. 

On the heels of the calls to extend the phone tax, the Public Policy Forum has suggested a $10 car fee to be paid by Milwaukee County residents.  The revenue collected through this tax would be used to fund the Milwaukee County Transit system. This would be in addition to the $75 state fee to register your vehicle.  The study also presents various scenarios that involve as much as a 10.8 cent per gallon gasoline tax.  This would be in addition to the current Wisconsin gas tax which is one of the highest in the country.  

With a mounting tax burden and local government officials refusing to give Milwaukee citizens the slightest break, Wisconsinites, specifically Milwaukeeans, must start relying on their thrifty disposition to get by.  The first thing that I have done is to avoid making major purchases in Milwaukee County.

For instance, when purchasing a new television set, furniture, or other expensive items, I make sure to do so when I visit my parents in northeastern Wisconsin, in one of the counties that only have a 5% sales tax.  Consumers, when possible, should reward communities that have be able to restrain themselves from raising their sales tax levels. Tax consequences also played a role in me not registering my car in Milwaukee County.

These consumer behaviors of avoiding spending money in Milwaukee are being mirrored by businesses.  The American Bowling Congress will be leaving, and there is little expectation that Miller Brewing will stay.  However, recently Uline and Abbott Labs have announced expansion into Southeastern Wisconsin, in Kenosha.

These expansion announcements show that despite a burdensome tax environment that businesses see value in Southeastern Wisconsin.   Imagine what could occur if local and state officials begun making a conscious decision to lower the cost of living and of doing business by taxing at levels that are not some of the highest in the country.

The great potential of Milwaukee could be unleashed.  High tech jobs would be created, smaller businesses could grow and an economic vibrancy would be felt by all.  I encourage Wisconsin’s elected officials to acknowledge that taxation levels do matter, and can be to burdensome.  Acknowledge this and take actions that would make Wisconsin frugality a quirky trait and not a survival mechanism. 

-May 8, 2008

Home | About | Commentators | Recent Commentary | Reports by Subject | Reports by Author
Podcast | Contact Us | Blog | Polls | Contribute
Copyright 2009 Wisconsin Policy Research Institute