More info on Dems HOPE program

[ewagner]

Received this fact sheet.....make sure to talk to other Dems about this. I'm excited that we're taking the initiative on this and HOPE it beats the crap out of the Repubs....btw: notice the framing of the "Las Vegas Loophole! (we're learning slowly but surely how to do this)

from fact sheet:

HOPE
The Homeowner’s Property Exemption
A Time for HOPE
Recently, legislative Democrats scored a victory for fairness when they, along with local
governments, labor, and Governor Jim Doyle, forced Republicans to stop blocking the minimum
wage increase. Finally, tens of thousands of workers will get a long-overdue bump in pay to
help pay for things like groceries and gas.
Now, legislative Democrats are fighting for a fairer tax system. Our current system is out of
whack. Over the past three decades, Wisconsin homeowners have taken on an unfair share of the
state’s property tax burden.
HOPE, the Home Owner’s Property Exemption, restores fairness to the property tax system by
making sure everyone pays their fair share.
· HOPE exempts from school taxes the first $60,000 of a home’s value.
· The average HOPE credit will reduce property tax bills by $569.
· The HOPE credit applies only to homes that are used as the owner’s primary residence.
· The HOPE credit will appear as a credit on your property tax bill like the lottery credit.
Why We Need HOPE
Governor Doyle has proposed a responsible property tax freeze that will fund education and local
services like police and fire protection. His plan, if implemented in this year’s budget, will bring
about immediate property tax relief. The HOPE Credit is the next step, a long-term step, and
will save families in Wisconsin an average of $569 dollars on their property tax bill.
· Property taxes have risen faster than our ability to pay for them. Home owners are
paying more and more taxes while big corporations get loophole after loophole. It’s time
to restore fairness.
· In 1971, property taxes on homes accounted for 50 percent of property taxes paid in this
state. Today, the share is 69 percent.
-OVER·
In 1977, corporate income taxes accounted for 14 percent of the general tax dollars the
state takes in. Today, the number is 6 percent.
· HOPE will shift some of the burden of property taxes off the backs of homeowners and
renters.
· HOPE will cut property taxes without hurting education or vital local services.
· HOPE will restore fairness to our tax system and close corporate loopholes.
How Does HOPE Restore Fairness?
Besides reducing property taxes on homes, the HOPE bill directs the Joint Survey Committee on
Tax Exemptions to prepare a report detailing which corporate loopholes and tax exemptions
should be closed to restore fairness to taxation in Wisconsin. Over $3 billion in tax loopholes
have been identified by the Department of Revenue’s Summary of Tax Exemption Devices.
Options include:
· Closing the “Las Vegas” loophole which encourages corporations to create out-of-state
subsidiaries solely to avoid paying Wisconsin income taxes.
· Restricting the property tax exemption for computers and related equipment to small
businesses only.
· Removing tax exemptions for luxury boxes and automatic teller machines.
Other Facts
· The HOPE credit is determined by multiplying the school mill rate by $60,000.
· If an individual files an application for the lottery and gaming credit, they don’t have to
file a separate application for the HOPE credit.
· People are still eligible for the lottery credit and the school levy credit if they apply for
HOPE.
· HOPE will be a property tax cut on top of any property tax freeze that is part of the state
budget.
· HOPE increases the rent credit for renters from 12 percent to 16 percent of rent
constituting property taxes.

[ClassWarrior]

1. What a beautiful, values-based piece of legislation.

I LOVE the names HOPE and "Las Vegas loophole." Looks like our state Dems have learned something...

NGU.

[sybylla]

2. I don't know about this, ewag, but I appreciate your excitement

I, too, like the idea that they are on the offensive.

And I like the basic idea of eliminating the first $60,000 in value of a home, but I'm not convinced that that will help retired folks when the average home in this state is worth about twice that. Yeah, it will be a cut for them, but the school needs a certain amount of money to function every year. They'll be forced to boost the rate on the remaining value thus reducing the effect of the cut. If the Dems freeze the mill rate on schools, then the schools will be forced to depend on the kindness of the state and you know what that will mean if the pukes return to power.

I guess my problem with HOPE is that there are no details here, just a lot of sales pitch. I can't help but feel I'm in the middle of a game of three card monte, trying to figure out which is the Queen - the real tax cut/freeze deal. And I can't bring myself to support it just because the Dems thought it up. I still get the feeling this is merely a distraction from the fact that no one in the capitol seems to want to make real cuts in our deficit, including our own gov who made the mistake of promising "no new taxes" and now has to live with it when corporations in this state pay less and less of their share.

Unfortunately, the Dems appear to be keeping the details of HOPE close to the vest, which pisses me off to a small degree. That's what the pukes do when they play their poltical games. This tells me either the Dems just pulled this out of their asses and are still working out the details or they are afraid it is somewhat insupportable and are waiting to spring the details when they have a PR campaign in place (just like the pukes do).

Until I can see how it works, see that it's the real deal and, thus, be able defend it against its critics, I can't support it.


on edit: typo

[ewagner]

3. I'm suspecting

some sort of freeze to be associated with it because the wording says that the exemption will be there regardless of any freezes. I'm guessing that we're proposing a smaller freeze than the repubs....I think.....don't like this but at least it takes the discussion away from the repubs....maybe some compromise will be better.....

In short, I'm more excited about the political aspects than the practical ones at this point. Madashell may have some good reasons to be worried.......

[sybylla]

4. I'm not sure MadAsHell has had time to look at this yet

But you are right, he may have some good reasons to be worried. Of course, we'd have to have some specifics before we can know.

Personally, I think freezing schools is the wrong way to go, if that's the plan. Schools are already limited to small increases and my school district had the largest percentage decrease in mill rate in the state this year due to the hinky calculations that come along with the revenue limits placed on schools. Freezes only hurt the schools who have made the cuts and done what they had to do to live within the revenue caps. Freezes freeze into place inequity, just like the revenue caps placed on schools entrenched funding inequity.

I'd rather see temporary revenue caps placed on local governments combined with firm committments on shared revenue - which is a better deal than the schools have at the moment. Then let taxpayers take the credit on their tax returns rather than further burdening the county governments with some wackjob calculation on your taxbill.

on edit: spelling

[Jimbo S]

5. We're playing Karl Rove's game, and I don't have a problem with that.

Catchy sound bites. If you can't beat 'em, join 'em.

--------------

One up the Republicans in their proposal. They want to freeze taxes, we'll cut them!

Joe Six-Pack will get all excited about anything if he knows he's getting $$$ back. That's the demographic the Dems need to target.

[ewagner]

6. This may be

the equivalent of a "punt".....we can't do the RIGHT thing by the schools because we don't have the power....we may have to do SOMETHING to get back in power so we can do the RIGHT thing....

there is a huge difference between governing and getting elected.....

but getting elected is the most important thing.....sometimes....

[Jeff In Milwaukee]

7. If I understand this correctly...

what's being frozen is the revenue from property taxes. The actual funding for schools could be made up from other revenue streams, such as closing corporte tax loopholes or increasing income taxes.

If I'm reading the intent correctly, it's to shift the tax burden off homeowners and onto the entire tax base in general (many hands make light work, don't you know) and off of individual taxpayers and back onto corporations.

It appears that the intent is to restore a balance that existed 20-30 years ago, but that has been steadily eroded over time and many Republican-led Administrations.

[ewagner]

8. HOPE (pun intended) you're right

I was close to the same consclusion at first until I read the caveat about tax freezes....... thanks :hi:

[Jeff In Milwaukee]

9. For God's sake, don't start a pun thread...

Where do you think you are, the lounge? We're much better than that here.

No. Wait. On second thought, we not much better than that here. So pun away...

We had something of the same problem in Ohio when it came to funding schools (still have the problem, really, thanks to the Republican General Assembly). Because schools in Ohio are financed primarily by local property taxes, districts with a high tax base (i.e., a huge shopping mall or a factory in the neighborhood) had very low taxes and those that were primarily bedroom communities had taxes that were staggeringly high and school districts that were always woefully under-funded.

The solution is to increase the state's commitment to funding for public schools, so that local property taxes don't determine the quality of your child's education. That would require the state to close corporate tax loopholes and other subsidies and to raise the tax rate for all taxpayers.

Some folks (renters) would undoubtedly pay more because even though property taxes are part of their rent, you can't count on landlords doing the right thing and passing those savings along. But a broad-based, progressive income tax is better that a flat tax that is leveled against only one type of tax payer.