Two more reasons why we pay more and the well-off pay less.
From the Institute for Wisconsins Future:
Two Supreme Court rulings undermine state’s tax base
Two long-awaited decisions by the Wisconsin Supreme Court, released days apart in July 2008, have ripped more holes in Wisconsin’s already tattered tax base.
In one case, the Court upheld the state Tax Appeals Commission, which ruled that the Menasha Corp. was illegally charged the 5% state sales tax on specialized software it purchased. State tax collectors had argued that the company bought prewritten computer software, which is taxable. The result: an estimated $265 million in refunds that cash-strapped state government will have to pay, plus the loss of sales tax revenue going forward.
In the other, the Court ruled in favor of Walgreens, saying that the City of Madison had used the wrong method to assess the value of the buildings the drugstores are in. This ruling might squeeze the property tax base in as many as two dozen communities statewide.