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Floated ideas, but didn't back increase in sales tax

Tom Kertscher
By Tom Kertscher September 21, 2018

Gov. Scott Walker pledged during his 2014 campaign not to support an increaes in the sales tax, which has 5 percent since 1982  — though he did float some possibilities.

In December 2013, Walker said he was "envious" of states that had eliminated income taxes and that he could support raising the state's sales tax rate, or eliminating sales tax exemptions, if Wisconsin eliminated its income taxes. But nothing further developed.

(The non-profit Wisconsin Budget Project argued at the time that such a move "would result in a tax increase for all but the wealthiest taxpayers.")

And in October 2014, Walker floated the idea of scrapping the gas tax and replacing it with a sales tax on gas. But he said he would make it part of an overall net cut in state taxes. To replace the nearly 33-cent-per-gallon gas tax would have meant creating a sales tax on fuel beyond the current 5 percent state tax on other items; or keeping some part of the gas tax and then adding the new fuel sales tax on top of that.

In any case, Walker made the stronger pledge and no increase in the sales tax was pursued.

In July 2018, Walker said his administration would begin collecting online sales taxes in October 2018. That was made possible by a June 2018 ruling by the U.S. Supreme Court that said states could collect taxes for online sales far more broadly than before.

It's estimated that will bring in $90 million in the first year. But Walker has said that whatever the amount, income tax rates would be reduced so that there is not net increase in tax revenue to the state.

In any case, this is not increasing the sales tax rate itself.

It's also worth noting that under Walker, state budgets have approved allowing several communities to utilize the premier resort area tax. But that is a local retail sales tax, not a state sales tax.

Our rating

Walker promised not to support an increase in the state sales tax. He has floated ideas about an increase if, for example, the state income tax were eliminated. But there has been no proposal, by him or others, to raise the tax.

We rate this a Promise Kept.

Our Sources

Milwaukee Journal Sentinel, "Wisconsin to begin collecting online sales taxes Oct. 1," July 3, 2018

Wisconsin State Journal, "State to expand collections of online sales tax Oct. 1," July 4, 2018

Milwaukee Journal Sentinel, "Gov. Scott Walker pitches gas tax change for road funds," Oct. 14, 2014

Email, Wisconsin Policy Forum research director Jason Stein, Sept. 18, 2018

Email, Wisconsin Budget Project director Jon Peacock, Sept. 18, 2018

Email, Wisconsin Counties Association director of research and analytics Dale Knapp, Sept. 19, 2018

Email, Gov. Scott Walker press secretary Amy Hasenberg, Sept. 19, 2018