At some point, the law of diminishing returns kicks in!
Remember when Walter Mondale promised to raise taxes at the Democrat(ic) National Convention in 1984? Remember Walter Mondale?
Smiles and high-fives all around as the mayor of Milwaukee signed legislation levying a 2% sales tax Friday 07-14-23. (Got to think Madison Mayor Satya Rhodes-Conway is licking her chops. She’s facing her own budget crisis.) Wisconsin’s largest city is the only municipality allowed to levy a sales tax.
The County of Milwaukee may follow suit later this month by adding another 0.4 percentage points to its existing 0.5% sales tax. On top of the State of Wisconsin’s 5.0% tax, that would put sales tax within the city of Milwaukee at a hefty $7.9%. Ouch!
Plenty of incentive to buy that toaster oven or diamond bracelet in Waukesha County with its 5.0% rate. [Motorized vehicles are taxed according to the jurisdiction where the vehicle is normally kept, so Milwaukee residents could not save money by purchasing a car in another county.]
Milwaukee’s tax increase(s) will kick in in time for next summer’s Republican National Convention (July 15-18). All those well heeled MAGA magnates — an estimated 50,000 visitors — booking hotel rooms, taking restaurant meals, buying souvenirs!
Think about it, the city owes its coming windfall to Republicans!
It’s own pension fund!
Milwaukee needs the $194 million raised by its new sales tax to pay off its pension obligations. Every other government employer belongs to the solvent Wisconsin Retirement System but not Milwaukee County. Oh no-ooo! Not Milwaukee!
Without the extra dough, the city faced laying off 700 of its 1,600 police officers — in a city rated more dangerous (per capita) than Chicago! Milwaukee had already shed 1,000 employees in the last 20 years — almost half of them police and fire. It’s a city that can’t even celebrate the success of its pro basketball team without bloodshed.
The Republican-majority state legislature dictates the extra money can only be spent on paying off the fire and police pension. When that is accomplished, it must be spent on hiring more police officers and firefighters. It can not be spent on its streetcar (The Hop), or on diversity, equity, and inclusion — although money is fungible. Some Milwaukee alders want to challenge those restrictions in court.
From a peak population of 740,000 in 1960, the city now counts 563,305 — and that's down 2.3% just from 2020!
Three of Milwaukee 15 alders voted against raising the tax, winning the praise of the Milwaukee Alliance Against Racist and Political Repression, which blamed city “mismanagement.” Its solution: “Drastically reduce spending on the police.”
Blaska’s Bottom Line: Maybe a safer city would produce more prosperity and lower taxes.
6 responses to “Milwaukee pushes business to Waukesha”
Hey Dave, interesting point on the sales tax but not sure how that would work. Having just bought a vehicle in Illinois, they charged me the 5.5% Wisconsin/Dane County sales tax, presumably based on my address? So MKE folks are gonna pay more even if they drive to Brookfield, no? So I guess, to your point, more MKE folks are likely to move to Brookfield, although I guess their property taxes should get factored in. Taxes, taxes, taxes! 🙂 Also interesting that both Milwaukee and Chicago are mired in pension debt…crazy!
I think you are correct.
Yes, you are correct. Motorized vehicles are taxed at the rate of the county where they are normally kept. Thanks.
Are Crazy T.V. Lenny’s EBIKIES deemed motorized?
Asking for a BIKIE friend…
The Gotch
No. Picked it up in Chicago with Illinois temp plates. Wisconsin ones arrived a month later. Apparently there’s sales tax reciprocity on vehicle sales.
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