The Tax Revolt to Come

This fall a third of Wisconsin school districts passed referendums to increase taxes. The total bill will be $4.4 billion. On the one hand, we have to acknowledge that voters chose to tax themselves, so that indicates support for schools, and we have to give people some credit for understanding the implications for their family budgets.

But when the full bills start coming due — in Madison that won’t be for another three years when the owner of the average home will get hit with around $1,600 in new taxes, including school and city referendums — I have a feeling there will be some sticker shock.

Now add the apparent over-turning of Act 10. A Dane County judge has ruled that the law, which saved taxpayers billions of dollars over its decade-long run, is unconstitutional. There will be some twists and turns, but in the end the liberal Wisconsin Supreme Court will agree with the lower court and strike down the law.

Wasting no time, the Madison teachers union is already demanding new contract talks, even though they’ve already received the maximum pay increase allowed under the law. Since pay and benefits make up 80% of the budget any increase over what they’ve already received will put big pressure on the budget.

It should be noted that the judge’s decision had nothing to do with taxing limits. Those are still in effect. But if Act 10 goes, there will soon be pressure for a new round of referendums on top of the ones that just passed.

Which brings me to my point. There’s every reason to think that, in a new wave of referendums, most will go down. Then attention will turn to knocking down the requirements for referendums themselves. Someone will come up with some kind of legal argument against them and the liberals on the Supreme Court will agree. Or the Democrats will take back control of the Legislature and do it the old fashioned way — quickly returning themselves to the minority in the next election.

Taxes have not been a top issue in this state for a decade or so. That’s because of Act 10 and those levy limits. Here’s a bold prediction. Give it two or three years and taxes will be right back at the top of the political agenda.

George Harrison wrote the theme song for the coming rallies.

Should five percent appear too small
Be thankful I don’t take it all
‘Cause I’m the taxman
Yeah, I’m the taxman

Have a nice weekend.