Wednesday, June 04, 2008

"Hope" Plan for Tax Relief is a Scam

Thanks to the Club for Growth for this information, because Sen. Wirch is constantly touting how he is a supporter of HOPE.

In the upcoming fall elections, Wisconsin Democrats will be out touting their "Homeowners Property Tax Exemption" plan (curiously dubbed H.O.P.E). The plan was originally drafted as a change in the state's statutes, until the bill sponsors realized it was unconstitutional.
Of course that won't keep the Democrats from promising home owners a $569 tax cut even though it would take a minimum of four years, a successful statewide referendum and separate enabling legislation before they could deliver on their promise. Meanwhile Governor Doyle and the Democrats will continue to loosen spending caps on local governments while the costs of public employee benefits go through the roof.

The HOPE plan would exempt the first $60,000 of a home's value from the property tax by raising sales taxes on a variety of goods and services yet to be determined. Proponents of the plan will claim that they are closing corporate loopholes and making businesses pay their fair share of property taxes, but they only way they can possibly fund their plan is to remove tax exemptions on everything from haircuts and tax preparation to disposable diapers and prescription drugs.

Since the plan requires a constitutional change, a resolution would have to be passed by the Legislature in January of 2009 at the earliest and then again in January of 2011. If the amendment were approved by state voters in the spring of 2011, the legislature would be required to pass enabling legislation for the Governor to sign. Given that voters have twice rejected the same amendment, last time by a margin of 70%-30%, the best case scenario requires more than just hope. As Senator Clinton would say, it requires the willing suspension of disbelief.

So what are Democrats hoping?

• They HOPE you don't realize their plan is illegal
• They HOPE you don't mind waiting four years for property tax relief
• They HOPE you won't mind paying sales taxes on every good and service currently exempt
• They HOPE voters who rejected the same idea by 70-30% won’t realize this is the same scam
• They HOPE it works

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