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.

State

• Balance the state budget under generally accepted accounting principles (GAAP). Deal with the state’s budget deficit through a spending freeze at current levels, and for areas that must increase due to prior commitments, pay for the increases with cuts elsewhere. Reach a balanced budget by making additional cuts or delaying scheduled tax relief. 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.
• 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
• Repeal recent tax increases that inhibit economic development including: combined reporting, new top income tax bracket, domestic production activities tax, 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
• End non-routine inter-fund transfers from segregated funds and borrowing for routine operational costs in order to balance the budget
• Establish local spending caps (inflation plus new construction or growth in enrollment) that don’t jeopardize the educational components of our local economic development initiatives
• Continue to make efforts to finance the state budget stabilization fund
• Eliminate the remaining categories of business equipment still subject to the state personal property tax
• Expand tax credits for research and development, technology grant and loan programs, and incentives for reinvestment of capital gains
• 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
• Keep Wisconsin’s tax code in conformity with the federal tax code
• The Revenue department must provide specific written guidance and answers to tax questions upon request. Taxpayers must be able to rely on past audit practices for guidance. The burden of proof on negligence penalties must lie with the government.

Federal

• Repeal the alternative minimum tax; continue to reduce the capital gains and dividend tax and eliminate the estate tax
• Simplify the tax code whenever possible
• 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