Limiting Taxation and Government Spending
Government should be held to the highest standard of responsibility in the use of taxpayer dollars. Spending caps or controls on state and local government units of all types can be useful so long as they promote efficiency, minimize cost shifting, give credit for spending below caps, and treat bonding (including TIF) appropriately. We oppose un-funded mandates imposed by one level of government on another and we support elimination of inappropriate existing un-funded mandates. Reduction of tax rates and simplification of tax systems contribute to the global competitiveness of business. Greater reliance should be placed on user fees and less reliance should be placed on property, income, interest, dividend and capital gains taxes.
- Balance the state budget under generally accepted accounting principles (GAAP). Pursue privatization of routine functions when cost-effective. Scale back eligibility for state entitlement programs to federal requirements. Pursue corrections reform measures that have been successful in other states in order to redirect state tax dollars. Continue to make efforts to finance the state budget stabilization fund.
- Oppose business tax increases including: expansion or increase of the personal or corporate income tax; expansion or increase of the sales tax or elimination of existing sales tax exemptions. Retain the manufacturing and agriculture income and franchise tax credit passed last session and the longstanding manufacturers’ machinery and equipment (M&E) property tax exemption.
- Repeal recent tax increases including: new top personal income tax bracket. and reduction of capital gains tax exclusion from the federal standard
- Limit state spending increases to inflation plus population growth or to personal income growth
- Pass a constitutional amendment to prohibit non-routine inter-fund transfers from segregated funds and borrowing for routine operational costs in order to balance the budget
- Eliminate the remaining categories of business equipment still subject to the state personal property tax and provide municipalities with a compensating shared revenue increase
- Reform the state school aids and shared revenue formulas to improve fairness among districts, to promote regional tax base sharing and to encourage government cooperation and consolidation of services
- KeepWisconsin’s tax code in conformity with the federal tax code
- Reduce federal deficits and debt to levels that are sustainable for the long term without harming the short term economic recovery
- Repeal the alternative minimum tax or develop a method to retroactively and permanently adjust it for inflation; continue to reduce capital gains and dividend taxes (which are assessed on income that has already been subject to the income tax) and eliminate the estate tax
- Reduce the corporate income tax rate which is now the highest in the industrialized world
- Simplify the tax code whenever possible to improve and reduce the cost of compliance
- Ensure the future of Social Security and Medicare with as little impact on taxes and benefits as possible, recognizing that the current structure of these programs may need to be changed