The other part of the state where the property tax burden was high was Dane county, according to WISTAX. The city and town of Madison led the area with property taxes at 8.8% and 8.2% of income, respectively. Five suburbs surrounding Madison also made the top-50 list: McFarland and Mt. Horeb (both 7.4%); Sun Prairie (7.3%); and DeForest and Stoughton (both 7.1%).
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In a separate part of the report, WISTAX notes that the property tax-to-income ratio is much like a political “heart monitor.” When property taxes relative to income climb above 4%, discontent begins to grow. The study cited several periods in the postwar era when property taxes were unusually high and led to a major change, either in politics or in policy-making. Most recently, this occurred in 1993-94, when property taxes completed a 14-year rise, hitting 4.8% of income. Then, a bipartisan majority in state government imposed school revenue limits and first committed the state to providing two-thirds of local schools’ revenues.
The Price
Looking forward to July 4th, I came across this article by James H. Warner, a Marine Corps Officer who spent five years and five months in a North Vietnamese prisoner of war camp:
the first of June, I was put in a cement box with a steel door, which sat out in the tropical summer sun. There, I was put in leg irons which were then wired to a small stool. In this position I could neither sit nor stand comfortably. Within 10 days, every muscle in my body was in pain (here began a shoulder injury which is now inoperable). The heat was almost beyond bearing. My feet had swollen, literally, to the size of footballs. I cannot describe the pain. When they took the leg irons off, they had to actually dig them out of the swollen flesh. It was five days before I could walk, because the weight of the leg irons on my Achilles tendons had paralyzed them and hamstrung me. I stayed in the box from June 1 until Nov. 10, 1969. While in the box, I lost at least 30 pounds.
Kohl/Feingold Oppose CAFTA, Local Coverage
The Capital Times covers Senators Herb Kohl and Russ Feingold’s opposition to CAFTA (Central American Free Trade Agreement). Perhaps the Wisconsin Media might start asking questions about recent Feingold and Kohl support for:
- Big (as in very big) business tax cuts, in this case a 5.25% rate for offshore earnings.
- The National ID Bill
- Junkfax, passed recently by unanimous consent in the Senate.
Opportunities for Small Banks
Aside from roadside deposits, Western National offers a courier service to pick up deposits from small-business customers and gives out toy safes for the children of the personal account holders.
It is touches like those that Mr. Hinz says will snare customers frustrated with the impersonal faces of the giants. Customers, he says, want to be greeted by name and treated as though their $2,000 savings accounts or $50,000 small-business loans really matter to Western National.
“We found that especially with small-business lending and banking, being able to know your customer is critical,” he said. “Being part of the community in which they work is critical. The big bank networks aren’t really built to take care of smaller loans.”
Sort of business 101…
An Open Letter to SBC’s Ed Whitacre and Yahoo’s Terry Semel
I find it ironic that SBC, a regional “Baby Bell” and the dominant telco in Wisconsin, that makes its money on two way voice conversations and a growing data business would invest heavily in legacy one way media (more cable TV). SBC is offering customers bundling deals with satellite tv providers along with their Yahoo DSL service. [Stephanie Mehta’s article]:
Whitacre may well be honing his schmoozing skills for his newest—and unlikeliest—role: aspiring media mogul. In a few short months, SBC will unveil what it hopes will be the ultimate weapon in the war between cable and the Bells—a high-tech TV service that Whitacre insists will offer viewers as many channels as they currently receive from regular cable and then some. SBC has anted up $4 billion just to get its network ready to offer the service, known as Internet protocol TV, or IPTV, and it will spend additional hundreds of millions to acquire TV content. But much more is at stake: SBC’s future as a major player.
Ironically, and with perfect timing, it appears that true high speed fiber networks are starting to appear (The US lags well behind other countries on broadband costs and performance).
- Cablevision is implementing 50Mbps service in NY (slashdot discussion)
- LaFayette, Louisiana is going to a local referendum to fund a municipal fibre network July 16, 2005
- Verizon, far more aggressive than SBC in broadband implementation is actually rolling out fiber to the home in some markets.
SBC, in trying to become a TV player when there is little meaningful growth in that market, evidently refuses to spend the money required to upgrade its network (keep in mind that we, the ratepayers, paid for the copper network years ago). Why Yahoo, ironically, a major beneficiary of the two way web, would spend any brand capital on this is a mystery.
SBC, in an effort to keep the cash flowing for these forays, still requires that the purchaser sign up for traditional phone service as a tax on the dsl product. This is a blatant attempt to stifle VOIP service across sbc dsl service.
Meanwhile, IEEE Spectrum says goodbye to AT&T (SBC plans to acquire what’s left of AT&T).
Update: Bellsouth plans to accelerate their fibre rollout.
Microsoft’s Puzzling Array of Linux Attack Money
Doc Searls Points to Tom Adelstein‘s fascinating blog on Microsoft’s money and influence in Washington (the article also mentions some subtle reporting changes at the Washington Post):
What we did not discuss on Monday, however, was the possibility that the committee could remain deadlocked for other reasons. Such reasons could involve additional payments which Preston Gates may have some difficulty explaining. Should the ethics committee meet, some democrats could face similar problems for Tom DeLay. According to the the Washington Post, other names are beginning to surface, including both House and Senate members. Names discussed in the article include Thomas A. Daschle (S.D.) and Harry M. Reid (Nev.), Richard A. Gephardt (Mo.), Sen. Conrad Burns (R-Mont.), Patrick J. Kennedy (D-R.I.), Sen. Patty Murray (Wash.) and Byron L. Dorgan (N.D.).
While you might find the Washington Post’s work admirable, there are some subtle changes in their reporting that grabbed my attention. For example, a switch has occurred in naming Jack Abramoff’s employer. In our previous discussion, we referenced a washington Post story that said that Abramoff worked for Preston Gates. Even the Seattle Times wrote an article focused on Preston Gates’ potential problems. For example, in a discussion of one of the firm’s clients the article states:
Eva Zeisel Makes Beautiful Things at 98
A few months ago, designer Eva Zeisel was contacted by Swarovski, the Austrian cut-crystal manufacturer. They asked her to submit ideas for designs and said they’d send her a contract so she could get started.
“I hope it arrives soon,” Zeisel, who is 98, told her daughter matter-of- factly. “I am unemployed!”
She exaggerates. The irrepressible Zeisel — one of the 20th century’s first industrial designers, and a leading force, still, in American design — is, at nearly 100, busier, more productive and more celebrated than ever.
Madison Should be Out Front on this…..
David Isenberg on Lafayette, Louisiana’s 7/16/2005 referendum to fund a municipal fiber network:
Following the Brand X decision, the future of U.S. networks weighs more heavily on municipal network initiatives.
As Lafayette, Louisiana’s muni FTTH proposal approaches it’s July 16th referendum on the necessary $125 million bond issue, the following organizations have stepped up to support the plan, including,
The Realtors Association of Acadiana
Downtown Development Authority
Downtown Lafayette Unlimited
The Greater Lafayette Chamber of Commerce
Lafayette Economic Development Authority
Rebuild Lafayette North Committee
Acadiana Home Builders Association
parish executive committees of both Democratic and Republican parties,
The Louisiana Municipal Association
and several others
Ten Years of Chilled Innovation
Robert Hof interviews Larry Lessig on the US Supreme Court’s Grokster decision:
Q: What do you think of the decision?
A: This is a pretty significant defeat here. Certainly the result is better than what the MGM companies wanted — because they wanted the Sony case modified — and [Justice David Souter, who wrote the decision, isn’t] modifying Sony. But still, this intent standard…will invite all sorts of strategic behavior that will dramatically increase the cost of innovating around these technologies.Q: How so?
A: Imagine that you’re a company with a copyright and you see a company coming out with a technology you don’t like because it’s challenging your business model. We’ve seen lots of these — for example, ReplayTV, or the VCR. Obviously, if the technology is illegal, you can just get it stopped.But a second way to stop the innovation is just to litigate. Look what happened to ReplayTV: It spent years and millions of dollar litigating to defend its right to have the ReplayTV technology as it was. Essentially, it had to fold the company because the legal standard then was so uncertain that you had to get to trial before you could resolve the case.
Wisconsin Property Tax Hikes Outpacing Wages
Aids to local governments increased dramatically since 1955, according to the study. Local school aids rose 10.8% per year, while shared revenues to local governments increased 4.9% annually. However, WISTAX researchers point out that there are questions about the long-term effectiveness of local aids for reducing property taxes. Economic research in Wisconsin and elsewhere finds that state and federal aids to local governments only partially offset local property taxes, as a portion of that aid funds new spending.
The study finds that some limits on local governments have been effective at relieving property taxes and some have not. During the 1970’s, the state imposed cost controls on schools and levy limits on counties and municipalities. Due to an increasing number of “loopholes,” they were deemed ineffective and eliminated in 1983. Recent revenue limits on schools have been more effective, because they do not have similar loopholes. Counties and technical colleges have limits on the tax rates they can impose. However, large increases in property values have limited their effectiveness.