Showing posts with label exemptions. Show all posts
Showing posts with label exemptions. Show all posts
Saturday, October 25, 2025
Friday, February 11, 2011
Recall Scott Walker
Scott Walker claims that unions are a major cost that needs to be cut. They should only be able to negotiate their salaries. Which is prick-speak for, "Worry about your own health care and retirement! Now back to work!" The major-asshole caveat in all of this is that he plans on exempting police and fire union members from such measures.
Of all unionized public workers, police and fire, generally are paid the best. Exempting them makes this merely a punitive measure against collective bargaining. (And pay-back - the police and fire unions supported Scott Walker.) The claimed cost-savings are simply an illusory talking-point.
In one sparkling example, to illustrate the follies that are Scott Walker and privatization, during his time with the county, Mr. Walker privatized security guards at the court house claiming it would save money (and early retirement was offered to some as an incentive). The amount saved was about $52,000. He was warned that it was illegal due to labor contracts (to name just one reason he should have pursued other options). He pushed privatization through regardless. A year later, and a few grievances, this supposed money-saver is going to cost the county more than it otherwise would have if Walker had just left things well enough alone. The arbitrator ruled Walker's action were illegal. The county must now pay those workers' lost wages, benefits, and seniority for the time period. Security is again staffed by public workers.
And now he's trying to reenact this fiasco with the state.
Saturday, August 8, 2009
Divine Evasion
It has been estimated that religious organizations own up to 25 percent of the land in the U.S. Which means 25 percent is exempt from taxation.
An 8-part New York Times series by Diana Henriques dissects the church exemption issue.
Getting rid of these unnecessary subsidies would be one of the quickest and easiest ways to clean up tax law, and get revenue into the public coffers. Allowances are understandable when services are being provided for the sick, poor, or elderly - those who can not afford it or are physically unable to provide for themselves. But the massive conglomerates and operations some religious organizations run and/or are involved with, which get tax exemptions, are market distortions favoring one group (churches) against others involved in provision of the same service.
For Further Reading:
Milwaukee County Tax Exempt Organizations
Sales Tax Exemptions For Non-Profit Organizations
Tax Burden Shifting: Exemptions
Tax Exempt
Why Do We Give Churches Tax Exemptions?
An 8-part New York Times series by Diana Henriques dissects the church exemption issue.
Getting rid of these unnecessary subsidies would be one of the quickest and easiest ways to clean up tax law, and get revenue into the public coffers. Allowances are understandable when services are being provided for the sick, poor, or elderly - those who can not afford it or are physically unable to provide for themselves. But the massive conglomerates and operations some religious organizations run and/or are involved with, which get tax exemptions, are market distortions favoring one group (churches) against others involved in provision of the same service.
For Further Reading:
Milwaukee County Tax Exempt Organizations
Sales Tax Exemptions For Non-Profit Organizations
Tax Burden Shifting: Exemptions
Tax Exempt
Why Do We Give Churches Tax Exemptions?
Friday, August 1, 2008
Tax Fairness & Uniformity
Property tax levies rising 6.1 percent in southeastern Wisconsin in 2008 have the newspapers and anti-tax mouthpieces spouting their misdirected and confused rhetoric again.
First, spending at the state-level has not been exploding over the last few decades as these crusaders would like us to believe.
Second, discarding most property tax exemptions (which amount to one-third of all property) would be a boon to most state budgets and a relief to many taxpayers.
Third, trashing numerous corporate tax-code scams and collecting the fair share of taxes from the business community would be another infusion of funds into state and local coffers.
Fourth, the federal government could step in and aid the states.
Taxes are the price of civilization. We all depend on the services and amenities that taxes pay for. The answer isn't the race-to-the-bottom, discard the services that make us desirable cities and states mantra we hear from the talking-heads. We need to reinstate fairness into our tax code so that our progressive tradition is fulfilled and those with the most means and whom benefit the most from such an enviable way of life pay their fair share.
Otherwise, our society will continue its gradual descent into mediocrity with only the very well-off (whom most of the tax code already benefits) being able to afford and enjoy a respectable standard-of-living. If we allow public services to be cut to such a drastic degree, only the wealthy will be able to afford many of these public-goods, that we cherish in our everyday lives, in the private market.
For Further Reading:
Budget Cuts or Tax Increase at the State Level: Which is Preferable During an Economic Downturn.
State Expenditure Growth Slowing.
State Spending as Percent of GDP.
First, spending at the state-level has not been exploding over the last few decades as these crusaders would like us to believe.
Second, discarding most property tax exemptions (which amount to one-third of all property) would be a boon to most state budgets and a relief to many taxpayers.
Third, trashing numerous corporate tax-code scams and collecting the fair share of taxes from the business community would be another infusion of funds into state and local coffers.
Fourth, the federal government could step in and aid the states.
Taxes are the price of civilization. We all depend on the services and amenities that taxes pay for. The answer isn't the race-to-the-bottom, discard the services that make us desirable cities and states mantra we hear from the talking-heads. We need to reinstate fairness into our tax code so that our progressive tradition is fulfilled and those with the most means and whom benefit the most from such an enviable way of life pay their fair share.
Otherwise, our society will continue its gradual descent into mediocrity with only the very well-off (whom most of the tax code already benefits) being able to afford and enjoy a respectable standard-of-living. If we allow public services to be cut to such a drastic degree, only the wealthy will be able to afford many of these public-goods, that we cherish in our everyday lives, in the private market.
For Further Reading:
Budget Cuts or Tax Increase at the State Level: Which is Preferable During an Economic Downturn.
State Expenditure Growth Slowing.
State Spending as Percent of GDP.
Saturday, July 5, 2008
Tax Burden Shifting: Exemptions
Exemptions are a subtle scourge on our public institutions and a devious tax avoidance scheme written into state statutes by corporate lawyers working alongside on-the-take state legislators. This corporate welfare is yet another scam of planners, site selection experts, business interests, and others who falsely claim that without such an exemption certain businesses would be unable to accomplish a host of things -- remain profitable, support a certain level of workforce, etc. The key to getting an exemption is showing your business is benevolent in some fashion or another. But, as with such vague statutory language, this loose definition has been twisted to the benefit of businesses being able to avoid taxes with far-fetched explanations of what makes them benevolent, and also unfairly subsidizes them competitively against another similar business not receiving the exemption. Another way to get an exemption is to simply have your lawyers and lobbyists pressure state legislators to simply write it into the statutes (sections 70.11, 70.111, and 70.112).
Nearly a third of all the property in the City of Milwaukee is exempt -- roughly $6 billion worth of property that is not taxed! Barbara Miner informs, "Wisconsin now has approximately 16,000 exempt private properties, with a value of $21.7 billion."
The Wisconsin Department of Revenue, in State Tax Incentives For Economic Development In Wisconsin, details the numerous tax incentives available in Wisconsin.
Annysa Johnson reports, “The Congressional Budget Office estimated the value of tax exemptions for hospitals nationally in 2002 at $12.6 billion.” A report by the Institute for Wisconsin’s Future found, “billions of dollars worth of property goes untaxed because it is owned by not-for-profit hospitals and medical centers…many of these hospitals generate millions of dollars in annual income and pay their top executives salaries comparable to corporate executives.”
The Wisconsin Public Service Corporation explains, “Commerical customers with residential electric or natural gas [a storefront with an apartment above it] are tax-exempt from November through April for the portion of energy used for residential purposes…Non-profit organizations [operated for religious, charitable, scientific or educational purposes or for the prevention of cruelty to children or animals] are tax-exempt year round for electric and natural gas use.”
Credit Unions are tax-exempt institutions. As even the Wisconsin Bankers Association states, “To the extent that credit unions use their tax exemption to lower home lending rates, federal and state income tax exemptions are subsidizing borrowing by high-income households.” They find this exemption will cost, over the next 10 years, $400 million in Wisconsin, and $31 billion nationally.
A few of those with property tax exemptions written right into the state statutes are: machinery and equipment used in manufacturing, farm inventories, computer hardware and software, and tax increment districts. In a recent decision, City of LaCrosse v. Wisconsin Department of Revenue and Gundersen Clinic, the Wisconsin Tax Appeals Commission ruled that a host of categories of computerized medical equipment is exempt from property tax.
Those enjoying sales tax exemptions: manufacturing machinery and equipment; manufacturing consumables; pollution abatement, waste treatment and recycling equipment; production fuel and electricity. Steven Walters notes, “The sales tax [in Wisconsin] is expected to bring in $4.2 billion this year. It is the second biggest source of state tax collections, trailing only the $6.4 billion personal income tax.” He also lists the costs of certain exemptions: computer services $136 million; legal services $113 million; advertising $103 million; personnel services $79.4 million; architectural engineering and surveying services $69.2 million; management consulting and public relations $64.1 million; and accounting $59.5 million.
The importance of a good manufacturing base to our economy is obvious, as is the importance of recycling to our environment, etc. But if the market has decided that these aren’t important things and the government must support these endeavors, then we should at least also be guaranteeing these are well-paid jobs with health care and pension plans. If we’re going to be in the business (of whichever business we might be subsidizing), we should have it on our terms and have these be solid jobs that allow the workers to be happy, productive, and fairly compensated. Consequently, they are able to support their local economy (through purchases). This multiplier effect of locally earned and spent money ripples through the economy and creates jobs and stable communities.
There are a host of “business incentives” (welfare for the rich) in Wisconsin: Economic Development Zones with development zone credits, Tax Incremental Districts with infrastructure improvements financed by tax increments, and Technology Zones with tax credits for high-technology businesses locating in the zone. Granted some of this development would not occur without the subsidy. Therefore, that is a good investment if it occurs in a blighted or declining area. But sadly too often developers, real estate magnates, and builders use this welfare to line their pockets rather than making a catalytic investment (reproducing through the local economy), which would be much better for the long-term health of their city and economy. They build whatever is easiest and will return the quickest buck. They're looking to line their pockets with the largest amount of money in the shortest period of time. They're not trying to develop a sustainable, bustling, safe city environment.
The inequity in the tax burden is at a breaking point. Workers cannot bear the brunt of this burden much longer. The economy is in a recession as this is being written, and we may be headed for another 1929-style depression. Corporations have written the tax code to their benefit. Their share of taxes is minuscule and declining. Their, in essence, looting of public dollars has ramifications on our ability to maintain: parks, libraries, public transportation, sewage, wetlands, pollution, poverty, and employment – to name a few. It has ramifications on everything we do and how we live.
This is the workers' money they are stealing. Without the productive capacity of all the workers in the world applying their craft there would be no product or service to sell. They make the profits and standard of living we all deserve possible. Sadly, they are being exploited. I’m sure we’d all prefer a higher floor for the least among us, rather than a subsidized ceiling where the already-rich take from those working their asses off to make ends meet. Our inattentiveness and inaction with regards to this growing inequality is to our own detriment. Even the middle class is now being squeezed into a paycheck-to-paycheck lifestyle. This is a dismal fact and an abomination for a wealthy, highly-educated country like America.
Why is this? To recapitulate -- about a third of the land and property the rich/well-represented own is exempt from taxation. Capital gains, which are mostly claimed by the rich, are taxed much lower than income. The tax code has a hoard of loopholes, deductions, and write-offs, which benefit the rich. So, the basic story is: workers are working longer, harder, and producing more; but they aren’t sharing in the gains. And all those gains the CEOs and executives are making off Labor’s production are not being completely or fairly taxed, if at all. So we’re making less and having to pay for more while a few greedy bastards stockpile the treasure of our exploited labor.
Jack Norman calculates, “Thirty years ago, residential property accounted for half of all state property taxes. Today, homeowners pay 70 percent of all property taxes, as the business contributions have dropped…The poorest homeowners (incomes below $15,600) paid more than 14 percent of their income in state and local taxes. The richest homeowners (incomes above $70,000) paid about 10 percent of their income in state and local taxes.”
Fred Mohs, former regent with the University of Wisconsin System currently on the board with Madison Gas and Electric, in Barbara Miner's Tax Exempt Milwaukee Magazine article, contends, "The only people left to pay were the peasants and the merchant class, and they eventually solved the problem by cutting off the heads of a lot of people."
Nearly a third of all the property in the City of Milwaukee is exempt -- roughly $6 billion worth of property that is not taxed! Barbara Miner informs, "Wisconsin now has approximately 16,000 exempt private properties, with a value of $21.7 billion."
The Wisconsin Department of Revenue, in State Tax Incentives For Economic Development In Wisconsin, details the numerous tax incentives available in Wisconsin.
Annysa Johnson reports, “The Congressional Budget Office estimated the value of tax exemptions for hospitals nationally in 2002 at $12.6 billion.” A report by the Institute for Wisconsin’s Future found, “billions of dollars worth of property goes untaxed because it is owned by not-for-profit hospitals and medical centers…many of these hospitals generate millions of dollars in annual income and pay their top executives salaries comparable to corporate executives.”
The Wisconsin Public Service Corporation explains, “Commerical customers with residential electric or natural gas [a storefront with an apartment above it] are tax-exempt from November through April for the portion of energy used for residential purposes…Non-profit organizations [operated for religious, charitable, scientific or educational purposes or for the prevention of cruelty to children or animals] are tax-exempt year round for electric and natural gas use.”
Credit Unions are tax-exempt institutions. As even the Wisconsin Bankers Association states, “To the extent that credit unions use their tax exemption to lower home lending rates, federal and state income tax exemptions are subsidizing borrowing by high-income households.” They find this exemption will cost, over the next 10 years, $400 million in Wisconsin, and $31 billion nationally.
A few of those with property tax exemptions written right into the state statutes are: machinery and equipment used in manufacturing, farm inventories, computer hardware and software, and tax increment districts. In a recent decision, City of LaCrosse v. Wisconsin Department of Revenue and Gundersen Clinic, the Wisconsin Tax Appeals Commission ruled that a host of categories of computerized medical equipment is exempt from property tax.
Those enjoying sales tax exemptions: manufacturing machinery and equipment; manufacturing consumables; pollution abatement, waste treatment and recycling equipment; production fuel and electricity. Steven Walters notes, “The sales tax [in Wisconsin] is expected to bring in $4.2 billion this year. It is the second biggest source of state tax collections, trailing only the $6.4 billion personal income tax.” He also lists the costs of certain exemptions: computer services $136 million; legal services $113 million; advertising $103 million; personnel services $79.4 million; architectural engineering and surveying services $69.2 million; management consulting and public relations $64.1 million; and accounting $59.5 million.
The importance of a good manufacturing base to our economy is obvious, as is the importance of recycling to our environment, etc. But if the market has decided that these aren’t important things and the government must support these endeavors, then we should at least also be guaranteeing these are well-paid jobs with health care and pension plans. If we’re going to be in the business (of whichever business we might be subsidizing), we should have it on our terms and have these be solid jobs that allow the workers to be happy, productive, and fairly compensated. Consequently, they are able to support their local economy (through purchases). This multiplier effect of locally earned and spent money ripples through the economy and creates jobs and stable communities.
There are a host of “business incentives” (welfare for the rich) in Wisconsin: Economic Development Zones with development zone credits, Tax Incremental Districts with infrastructure improvements financed by tax increments, and Technology Zones with tax credits for high-technology businesses locating in the zone. Granted some of this development would not occur without the subsidy. Therefore, that is a good investment if it occurs in a blighted or declining area. But sadly too often developers, real estate magnates, and builders use this welfare to line their pockets rather than making a catalytic investment (reproducing through the local economy), which would be much better for the long-term health of their city and economy. They build whatever is easiest and will return the quickest buck. They're looking to line their pockets with the largest amount of money in the shortest period of time. They're not trying to develop a sustainable, bustling, safe city environment.
The inequity in the tax burden is at a breaking point. Workers cannot bear the brunt of this burden much longer. The economy is in a recession as this is being written, and we may be headed for another 1929-style depression. Corporations have written the tax code to their benefit. Their share of taxes is minuscule and declining. Their, in essence, looting of public dollars has ramifications on our ability to maintain: parks, libraries, public transportation, sewage, wetlands, pollution, poverty, and employment – to name a few. It has ramifications on everything we do and how we live.
This is the workers' money they are stealing. Without the productive capacity of all the workers in the world applying their craft there would be no product or service to sell. They make the profits and standard of living we all deserve possible. Sadly, they are being exploited. I’m sure we’d all prefer a higher floor for the least among us, rather than a subsidized ceiling where the already-rich take from those working their asses off to make ends meet. Our inattentiveness and inaction with regards to this growing inequality is to our own detriment. Even the middle class is now being squeezed into a paycheck-to-paycheck lifestyle. This is a dismal fact and an abomination for a wealthy, highly-educated country like America.
Why is this? To recapitulate -- about a third of the land and property the rich/well-represented own is exempt from taxation. Capital gains, which are mostly claimed by the rich, are taxed much lower than income. The tax code has a hoard of loopholes, deductions, and write-offs, which benefit the rich. So, the basic story is: workers are working longer, harder, and producing more; but they aren’t sharing in the gains. And all those gains the CEOs and executives are making off Labor’s production are not being completely or fairly taxed, if at all. So we’re making less and having to pay for more while a few greedy bastards stockpile the treasure of our exploited labor.
Jack Norman calculates, “Thirty years ago, residential property accounted for half of all state property taxes. Today, homeowners pay 70 percent of all property taxes, as the business contributions have dropped…The poorest homeowners (incomes below $15,600) paid more than 14 percent of their income in state and local taxes. The richest homeowners (incomes above $70,000) paid about 10 percent of their income in state and local taxes.”
Fred Mohs, former regent with the University of Wisconsin System currently on the board with Madison Gas and Electric, in Barbara Miner's Tax Exempt Milwaukee Magazine article, contends, "The only people left to pay were the peasants and the merchant class, and they eventually solved the problem by cutting off the heads of a lot of people."
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