Notes from the West Wing

By State Representative Garey Bies

Taxpayer Bill of Rights

             For this edition of Notes from the West Wing, I thought I would talk about the Taxpayer Bill of Rights, TABOR.  TABOR, introduced as Assembly Joint Resolution 55 by State Representative Frank Lasee (R-Bellevue), essentially requires a proposed state tax increase to receive approval in a statewide referendum prior to being implemented.  Tax modifications that would require a referendum include imposing new taxes, increasing tax rates, extending expiring taxes, or making tax changes causing net tax revenue gains.  Also, initiatives to exceed state spending limits would require a referendum.  TABOR also requires the establishment of an emergency fund and a budget stabilization fund; and requires governmental units to refund amounts in excess of the approved amounts and reduce tax rates to reflect the excess of revenues over expenditures 

Now lets talk about why this is a good idea, and lets start with the facts.  Between 1992 and 2002, Wisconsin’s General Purpose Revenue (GPR) spending grew at nearly twice the rate of population plus inflation.  If TABOR had been in effect since 1992, Wisconsin taxpayers would have saved more than $1.5 billion last year alone.  The State of Colorado implemented TABOR in 1992.  Between 1995 and 2000, Colorado’s personal income grew 51%, second in the nation.  Since 1992, Colorado has shrunk the size of government by $114 per person, per year.  In 2002, while Wisconsin was facing a $2.8 billion deficit, Colorado returned $927 million in surplus money back to its taxpayers. 

I support AJR 55, the Taxpayer Bill of Rights.  I believe the size of Wisconsin’s government has grown too large, it is part of the reason why I sought election to the State Assembly.  I believe that the growth of state government must be curbed.  With TABOR, governments would be forced to prioritize and to use what revenues that are available as efficiently as possible.  No longer would governments be able to simply add some new fee or increase a tax to generate new revenue to fund a new initiative.  Fiscal responsibility is a trait not easily found in politicians and government officials, but TABOR would force fiscal responsibility. 

TABOR includes safety mechanisms in the event of emergency situations where a government needs to quickly raise additional revenues.  The ability to bypass the referendum process on a revenue increase exists should the situation warrant it and TABOR requires the creation of an emergency fund as well. 

The bottom line is that TABOR will promote fiscal responsibility in a state that ranks in the top-5 in the nation for taxing its residents.  We need to get our state’s taxes under control and TABOR can achieve that goal.  As Colorado has shown, TABOR has not only controlled the expansion of their government, but has contributed to the economic development of the state as well.  That, I believe, is a win-win situation. 

As always, if you have questions or comments on this column or any other topic you might see or read in the news, I can be reached by e-mail at Rep.Bies@legis.state.wi.us or by telephone, toll-free at 1-888-482-0001.