The Wisconsin Policy Research Institute

Wisconsin Dream House

By Steven Pigeon

My fiancé and I have recently decided to take advantage of the current buyers market and purchase our first home. During this process we described to each other what our dream house would be. Realizing that this “dream house” of ours was not affordable we created a smaller list of more affordable features and began our hunt. After hearing about some of the details in Governor Doyle’s budget I realized that Wisconsin is quickly becoming a “Dream House” for many. A place that you wish to live, but simply can not afford.

It is estimated that between the budget repair bill and the proposed budget that the State will increase taxes by $3 billion. These increases would take $3 billion out of the private sector and send a message to businesses and individuals across the country that Wisconsin’s state government sees them as a revenue source and not as an asset.

The budget proposal seeks impose a combined reporting measure which will tax the out of state operations of Wisconsin-based companies, and is estimated to bring $215 million to Madison. Governor Doyle has defended this measure, saying that some companies will actually benefit from the change – however, regardless of how it is spun, WI based businesses will have $215 million fewer dollars.

This occurred after the passage of a $585 million hospital tax which is expected to result in Wisconsin receiving about the same amount in federal aid. What some forget is that Wisconsinites are also pay federal taxes; therefore decisions that have been made in the Wisconsin State House are increasing the federal tax burden of Wisconsinites.

Wisconsinites should also have grave concern about Governor Doyle’s proposal to create a new 7.75% tax bracket for citizens who have a family income of $300,000 or $225,000 for a single filer. Governor Doyle and the legislature should be aware that by taxing the “rich” that you are assaulting job creators, in part because “poor” people do not, and can not, give workers well paying jobs. This tax will also add an additional hurdle for local businesses to recruit and retain high caliber executive leadership. If local businesses are not able to obtain proper leadership, they will surely move their operations to a place where they can.

As can be expected, disagreement around any budget is centered on the proposed expenditures. Governor Doyle’s proposal to release 3,000 WI prison inmates prior to completing their sentences and forgo supervision of 7,000 individuals currently on probation is one such controversial provision. If just one of these 10,000 individuals commits a crime, Governor Doyle will have done a disservice to the state. Of all the places where the state government could save many, the governor chose an area that harms public safety.

I urge and appeal to the legislature to force Governor Doyle to adhere to his own words that he stated in 2003: “We should not, we must not, and I will not raise taxes.” The Governor was clearly dishonest with Wisconsin when he made that statement and is instead making decisions that will result in more criminals on our streets, more job creators and high wage earners leaving the state or investing less, and higher taxes and healthcare costs for those of us who stay.

With this budget proposal Governor Doyle is quickly turning Wisconsin into a dream house that few can afford. It is a state in the perfect location, with the perfect backyard, great amenities, and wonderful neighbors, but people know that they just can not afford it. These actions by Governor Doyle have the potential of turning Wisconsin into a place where people can only aspire to live, but can’t because of the high costs and lack of employment opportunities. I have made this state my home my entire life, please do not turn it into a dream house that I want, but can’t afford.

-March 30, 2009

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