9.11.2005

From This Month's Newsletter...

Message from the Chair
We Should Support the County Sales Tax to Protect the Most Vulnerable in Winnebago County

"Declining support from the US government and the State of Wisconsin, a 1.5 million structural deficit left by the prior executive, very generous three year labor contracts that run through 2006, rapidly rising fuel and utility costs, and a levy freeze that deprives the county of the additional revenue from appreciating property. The county is left with only two real choices; lay off 100 to 130 employees and allow many services to the poor the elderly and the community at large to suffer, or adopt a 1/2% sales tax."

This was County Executive Mark Harris’ statement regarding the proposed 0.5% sales tax. The sales tax will bring in $9 million in 2006. $3 million will go to fill the budget holes, $4 million will go to property tax relief, and $2 million would go into the reserve fund.

What does this mean? Many people are not talking about the property tax relief portion. It creates a $.50 per $1,000 reduction in the property tax rate. These numbers matter, because they help show who is gaining and losing in this equation.

We know who loses if this tax does not go through, the poor, the elderly, the developmentally disabled, children and crime victims. Without the funds generated by this tax, the DA will not re- fill a domestic violence advocate; the sheriff office will reduce patrol in rural areas, lowering response times. Social workers will be downsized, removing 70 indigent elderly from service and reducing response to child abuse claims.

But, independent fixed income elderly, and working poor homeowners also loose if the sales tax is not passed. Combining the property tax relief with the sales tax, you see a reduction to the tax burden of these groups. An elderly couple owning a $100,000 house, on a fixed income of $20,000 per year, the will save $50 on property tax, and according to Sate of Wisconsin estimates, $40 more in sales tax for $10 in tax relief.

Also, this tax does not fall on purchases of food or medicine; therefore much more of the elderly couple’s spending would be tax- free.

An average couple making $45,000 in household income would see a small increase in net taxes of $40 for the year. The sales tax collected then goes up with the level of disposable income. Also this would enable the county to collect this sales tax on the tourists who enjoy our county services through EAA, Country USA & the like, yet pay no local tax.

It seems obvious to me. It is the poorest, the most vulnerable and the elderly; as well as those dedicated county workers that care and provide services for them that are being asked to shoulder the cuts of the county budget. Why? So those with a large amount of expendable income will not have to see a marginal increase in the yearly amount of taxes that are collected by the county. If there is any lesson to be learned from the experience in New Orleans, it is that starving and gutting government affects those who need the service the most.

We must never forget that compassion does not end at the curb of your street. We as a society have a responsibility to care for those defenseless among us down the street, across town and throughout the county.

The sales tax is not a course that should be taken lightly; it is the better of two bad choices that have been handed to the county government. We should be proud to have a County Executive like Mark Harris who sees that the necessary course is not always the politically expedient one. By supporting his efforts, we will be supporting those in Winnebago County who most need our help.

I urge you to call your county supervisor ant urge them to vote in favor of the county sales tax to support those most needy among us.

The ‘Message from the Chair’ is Jef Hall’s opinion only.

Added:
Please go to my website: www.jef4wi.com for a calculator of how the tax effects you.

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