As Benjamin Franklin, the namesake of Benjamins, warned us: Nothing is certain except death and taxes!
While some Republicans are inclined to think all taxes are bad and some Democrats are inclined to think all taxes are good - maybe even great when levied upon millionaires, billionaires, and/or evil corporations - the fact of the matter is that taxes are the primary fuel for basic functions of government in the modern world. As for the “All taxation is theft” crowd… well… maybe we will get there someday, but not today.
For the sake of conversation, the Wisconsin Argus will assume that taxes are at the very least a necessary evil. Necessary or not, taxes seem as though they will inevitably exist for the foreseeable future. While taxes may be necessary, the more informed and aware we are as citizens, the more we can make sure that taxes are justly levied and sagely spent.
The Founders of our nation and supporters of The American Revolution declared “No taxation without representation!” Today it would be more accurate for Americans to declare “Full taxation without education!” So let’s join forces and get a little more educated about taxation and spending this April!
Wisconsin’s First Tax Awareness Month - State Senator Ted Kanavas
The first Tax Awareness Month in Wisconsin was launched in April 2007 by then-Wisconsin State Senator Ted Kanavas (R-Brookfield) to highlight the more than 30 new taxes and tax increases proposed in the biennial budget of then-Governor Jim Doyle. The late Sen. Kanavas raised awareness of the slew of proposed taxes by Gov. Doyle by issuing a press release every single day for the entire month of April highlighting one of the new taxes or tax increases.
Inspired by Sen. Kanavas’s fortitude in the face of taxation, the Wisconsin Argus will spend much of our energies this April to increase public awareness of the taxes we pay here in Wisconsin. How much those taxes are, how they compare to other states, how our taxes have changed over time, and how they might evolve in the future. Knowledge is power. There is nothing a politician fears more than informed voters looking over their shoulder.
The Golden Fleece Award - U.S. Senator William Proxmire
We should also be mindful of the evil twin of taxation: spending. Wisconsin has had many politicians who have promised to aggressively target wasteful government spending, but none more famous than Democratic U.S. Senator Willam Proxmire.
Elected to the U.S. Senate in a 1957 special election, Senator Proxmire would represent Wisconsin for over 30 years. According to Taxpayers for Common Sense:
Former Wisconsin Senator William Proxmire issued a Golden Fleece Award every month between March 1975 and December 1988. In his own words, the award singled out a “wasteful, ridiculous or ironic use of the taxpayers’ money.”
Through the Golden Fleece Award, Senator Proxmire fought for American taxpayers by focusing public attention on budgetary waste in every branch of government. A number of the programs or projects he targeted were curtailed, modified or canceled, helping to save American taxpayers millions of dollars.
The Taxpayers for Common Sense (TCS) state that Senator Proxmire asked them to revive the Golden Fleece Award which they continue to this day. Click here for the full TCS post on Senator Proxmire and the Golden Fleece Award.
Types of Taxation
A 2014 article “Seven ways Americans pay taxes” lists the following types of taxes: 1) Income taxes 2) Sales taxes 3) Excise taxes 4) Payroll taxes 5) Property taxes 6) Estate taxes 7) Gift taxes… and of course there are subgenres within.
There are taxes that come and go such as the Miller Park stadium tax that lasted for 23 years and was finally terminated in 2019. Similarly taxpayers are also helping to foot the bill for Fiserv Forum.
Some taxes, such as the gas tax and tobacco tax, generate less revenue over time due to changes in economic reality. In the case of the gas tax more fuel efficient vehicles reduce the amount of gasoline consumed and consequently reduce the amount of taxes collected. The tobacco tax has also generated less revenue over the last decade as human behavior has changed and Wisconsinites are purchasing fewer cigarettes.
We cannot forget new taxes! Most notably today, many states are beginning to tax newly legalized marijuana, much like how they taxed the newly legalized alcohol at the end of Prohibition.
While the income tax seems like part of daily life in modern America (or at least bi-weekly life) it was actually first implemented in 1911. Guess which state was the first to successfully implement the income tax? Wisconsin!
While Wisconsin was the first to implement an income tax in the United States, the income tax is basically as old as time, or at least as old as government.
According to the Tax Foundation:
“About 5,000 years ago, we see the first record of taxation in ancient Egypt, where the Pharaoh collected a tax equivalent to 20 percent of all grain harvests. At the time, Egypt was without coined money, so grain represented a tangible store of value that could easily be collected, traded, and redistributed throughout society.”
The Tax Foundation continues:
“Fun Fact: The Rosetta Stone, our key to unlocking the meaning of hieroglyphics, was mostly a tax document that explained new tax laws decreed in 196 BCE.”
Unfortunately, taxation did not get lost in translation.
With over 5,000 years of taxation being common practice, it seems certain that taxation is here to stay. As Wisconsinites and taxpayers, April Tax Awareness is our effort to help us all do our due diligence to learn more about how we are taxed and how those taxes are spent.
Taxation & Rock N Roll
We cannot have an honest conversation about taxes without trying to bring up pop culture.
George Harrison of The Beatles wrote and sang in his satirical hit “Taxman” from the Revolver album a range of digs at what he deemed was over taxation in 1960’s Britain. However, it was The Rolling Stones who literally fled England and recorded their album Exile on Main St. to avoid a huge tax burden. Mick did study economics after all.
Let’s kickoff our 2022 Tax Awareness Month journey with George and the rest of the Fab Four:
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