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2/29/2008
Special tax treatment - for me? For you?
Praise be to free markets and relative ease of mobility in these United States of America. Retirees all over the country are consulting web sites like this one that examine tax burdens in all 50 states.
A year or so ago, serendipity put me at the same baggage conveyor as former neighborhood friends at an airport somewhere or another. Lo and behold, they were on their way to retire in Austin, Texas!
Me: “Oh, are your kids there?”
Friends: “Oh no Jo… The taxes are lower!!!”
Honest to gosh. Really intriguing. Folks who packed up everything they owned, left friends and family behind, and moved to the hustle and bustle and low taxes of Austin, Texas.
Now, understandably, many of us love Wisconsin for all it is, will pay the piper when it comes to a conglomeration of taxes, and would never ever leave. And/or our kids or aging parents are here. And/or we crave snow, ice, football, fish fries and bratwurst.
All that said, Wisconsin is a very high tax state for retirees. (Well, for everybody, but we’ll hold this discussion to retirees.) The legislature took a baby step in the direction of reducing retiree taxes in the last budget bill, exempting $5,000 of retirement distributions, but only if the claimant is 65 years old and has a federal AGI of less than $15,000 ($30,000 for joint filers).
So that’s a start, but it isn’t going to keep the moving van from hitting the highways to Florida, Nevada, Arkansas, Texas, South Carolina…….
As part of an effort to move toward lower taxes for retirees, Representative Steve Wieckert (R – Appleton) introduced a bill last week that would exempt from income tax, the pensions of “emergency response professionals, such as police officers, firefighters and emergency medical technicians.”
Why not me?
This bill is based on the spirit of [U.S. Military pension exemptions] by expanding the exemption to include those professionals who… would… come to our aid in times of domestic terrorism, namely police officers, fire fighters, sheriff’s officials, state troopers, and emergency medical technicians. Not only do these professions currently put themselves in harms way to safeguard the public, but potential acts of terrorism only heighten the risk of dangers and hazards for these protectors of the public. (Rep. Wieckert’s sponsorship communiqué)
What?
Most of these folks have very healthy state-sponsored retirement plans that allow retirement at age 55 (age 50 for police officers and some firefighters).
And if we’re going to exempt income because someone’s profession is dangerous, why aren’t we looking at fishermen, pilots, loggers, structural iron and steel workers, refuse collectors (!), farmers and ranchers, power linemen, roofers, drivers and agricultural workers?
These are the 10 most dangerous occupations in the U.S. Maybe they don’t conjure up the same old 9/11 emotion and maybe they’re not good for as many votes, but these are the folks who die most often in the line of duty.
This is not to put down emergency personnel and hard-working public union employees. But it most certainly is to communicate that AB 861 is bad policy and bad legislation.
So tell me again, why single out these gallant protectors of the public for special tax treatment?
COMMENTS
Jo, Right on. The problems we face are for everybody and the solutions should be also.

dave allen (Fri Feb 29 07:12:23 2008)
Jo, this proves once again that guys like Steve Wieckert don't get it that the middle class is sick of hearing about all the special deals that public employees get. This has got to stop.

Mike P. (Fri Feb 29 07:54:17 2008)
Hi Jo: Mike P. is "Right on"! We all know our Wisc. State Retirement Plan is by any
measure the 4th or 5th RICHEST in the U.S. and yet average income in Wisc. (The "Folks" who are paying for this
generous Plan) is below the National average. Also, we know we are losing an average of 35,000 Retirees a year to
more tax "Friendly" states. And, many
of those are the wealthier Citizens who
we don't want to lose. The clincher is that some time ago I requested data on how many of those "Escapees" were beneficiaries of our GREAT Wisc. Retire-
ment system. Probably no surprise, the
average is 17,000 per year.
When will this folly end??
Wow! 17,000! JE

Glenn L Schilling (Fri Feb 29 11:02:44 2008)
The point is taken about special interests being able to lobby and buy someone like Wieckert and sponsor legislation that is frivolous at minimum and preposterous for anyone outside of the coterie that thinks up these things.
But as a topic of importance all this whining about whether rich people are going to pay $1100 in property taxes or $1105 makes my ass tired.
There are more important issues. And inflating the cause celeb of less taxes for the wealthy is tedious and boring.
And on the subject of boring, what could be more boring than a whole town of old farts? This is not even something to be wished for or desired. A town dies and turns into an assisted living village with the cared for and the care givers making up the whole population-- like Palm Springs or some other dream of retirees with big pensions and annuities and whatnot.
This does not speak to the day to day existence of the elderly who are not being served juleps on the veranda-- or more likely the air-conditioned clubhouses of private golf courses. Golf is also boring.
It effects a lot fewer people that you think. There are more important Fox Politics issues. The whole discussion reminds me of the old commercial of the dowager asking what's for supper. The butler replies "Hamburgers madam" and the old lady is wondering about the cost of polo pony feed and 'how is one expected to live?'
Whether the sun belt and redneck states have high taxes or not is beside the point. In a temperate climate there is at least some relief from year-round conditioned air for one thing. Whether the taxes are high or low, in desert climate the energy bill goes one way-- relentlessly up.

Lon Ponschock (Fri Feb 29 11:13:09 2008)
Spoken like a bona fide grumpy old fart, Lon. Lump into that boring group, all the recent graduates of our taxpayer funded post graduate and graduate schools, and we're talking some serious taxflight. Loss of economic support for this fine state, filled with some of the best people the U.S. has to offer does concern me. I don't care where it comes from, loss is loss; the balance of your argument comes off, quite frankly, as pure class envy.

Richard Parins (Fri Feb 29 15:29:35 2008)
Richard ... you got it right. Wisconsin cannot afford to have wealth leave the state ... whether it be retireds with their nest eggs or professionals who build the economy. Guys like Lon ... I dunno where they get their thinking ....

Apexcutter (Sun Mar 02 19:59:55 2008)
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