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THE ECONOMIC GENIUS OF LEE HOLLOWAY

By Charlie Sykes

I can't make this stuff up. This is the press release from County Board Chair Lee Holloway defending tripling tounty sales tax (from .5 to 1.5 percent... raising the overall tab to 5.5% to 6.6% -- a $130 million increase.) FEEL FREE TO COMMENT BELOW

 

FACTS PROVE COUNTY EXECUTIVE’S ‘TAX ISLAND’ CLAIM IS FALSE

Adjusted for gas prices, most County residents would still get better deal within Milwaukee County

Milwaukee, WI – Milwaukee County Board Chairman Lee Holloway issued the following analysis after the County Executive vetoed an advisory referendum on taxes and claimed a small increase in the sales tax (and decrease in the property tax) would create a tax island in Milwaukee County. The County Executive chose a Greenfield camera store to make the announcement.

At today’s gas prices, a 1-cent increase in the sales tax would not create a tax island. For a camera costing $500, the sales tax in Milwaukee County would rise by $5. But, factoring in our current gasoline prices, it would be slightly more costly for many Milwaukee County residents to drive to the nearest camera stores in Waukesha County . Using the County Executive’s example of Art’s Cameras Plus on S. 76th Street in Greenfield, the nearest comparable camera stores outside of Milwaukee County are: 

* Art’s Cameras Plus, 2130 W. Silvernail Road, Pewaukee (18 miles)

* Best Buy, 19555 W Bluemound Rd, Brookfield (14 miles)

* Mike Crivello’s Camera & Imaging Center, 18110 W. Bluemound Road, Brookfield (12 miles)

At a minimum, the nearest camera store outside of Milwaukee County is 24 miles roundtrip from Art’s Greenfield location. If an average vehicle gets 20 miles/gallon and fuel is $4.29/gallon, then the $5 in sales tax savings for a $500 camera would be offset by an increase in fuel of $5.14, making the Waukesha County purchase slightly more expensive than purchasing at the Art’s Camera store in Greenfield .

If the customer would choose to drive to the Art’s Camera location in Pewaukee (36 miles roundtrip from the Greenfield location), fuel costs would increase by $7.72, making the Milwaukee County purchase $2.72 cheaper.

 

 

Monday, Jul 21 at 12:14 AM Elmer Fudd wrote ...

What was that quote from Forrest Gump?...."Stupid is as stupid does?"

Sunday, Jul 20 at 10:35 PM Scott Stephens wrote ...

Hey Lee, guess what? Out here in the private sector when funds are tight, we need to think of creative ways to cut costs without compromising quality. Often times that means across-the-board pay cuts, especially in a tough economy. We can't "force" customers to pay more for our procducts whether they like it or not. Is this getting through to you? Have you ever heard of the private sector?

Friday, Jul 18 at 9:53 AM inthefuture wrote ...

This tax is unpopular. let it go to referendum. Give conservatives the chance to vote against a tax ourselves and see who prevails in this debate. If there were a bus route that took you to the camera shop in a reasonable amount of time it would cost a flat rate of 2 bucks every time. City dwellers without the need for cars would have a ALOT more disposable income to spend in milwaukee.

Friday, Jul 18 at 8:48 AM Tom of Kenosha wrote ...

We come up to Milwaukee often because our children go to college there. We also won't spend another dime there if the sales tax is higher than outside the county. Hollo Way must be the name for the empty passage between his ears.

Friday, Jul 18 at 7:35 AM Steve wrote ...

Lets hope we don't get rail in Milwaukee. Then Lee would look like an idiot.

Thursday, Jul 17 at 9:14 PM Cyber wrote ...

I travel to our Milwaukee office three times a week and if this passes, I will not spend another dime in Milwaukee, ever again.

Thursday, Jul 17 at 8:27 PM steveegg - No Runny Eggs wrote ...

Logic is definitely not one of Holloway's strong suits. He forgot that Waukesha County, unlike Milwaukee County, currently has no county sales tax, so those going to Waukesha County would be saving $1.50 per $100 spent instead of $1 per $100. Moreover, a smart shopper wouldn't first go to the Greenfield Arts Camera Plus and then return there, but would go from his or her residence to the out-of-county store and back.

Thursday, Jul 17 at 8:27 PM CK wrote ...

You all have it wrong! This is for the children! Are you against children?

Thursday, Jul 17 at 7:34 PM Don P wrote ...

Yea, the current gas prices makes sense to increase a tax to save us money???? I need help on this.

Thursday, Jul 17 at 7:26 PM dumas wrote ...

If I was at Art's on 76th in Greenfield, I would just drive to the Best Buy on 76th, two blocks north. Not all the way out the Best Buy on 195th & Bluemound. I can stay in Milwaukee county and buy the camera. Only a moron or county supervisor would think that press release made any sense.

Thursday, Jul 17 at 4:37 PM Steve wrote ...

MPS graduate?

Thursday, Jul 17 at 3:47 PM Tom wrote ...

I used to live in Chicago where there was a .5% city tax. Just to spite the bums in office I, and many others, would gladly pay extra to not pay the tax, particularly if you time your purchase on an out of city trip you're making anyway's.

Thursday, Jul 17 at 2:46 PM Steve wrote ...

I just made a purchase smililar to Mr. Holloway's example. Except I picked up the phone called around for prices. Then I went on the internet and found it for alomost $115 less than any store had it here. I paid no tax, used no gas and saved lots of time.

Thursday, Jul 17 at 2:45 PM KCD wrote ...

Just another reason I am so happy to have left MC and moved to AZ. Around here, several states...Utah and possibly AZ are looking to go to 4 day work weeks to conserve energy and fight the budget crisis. Tell me again why you have...what is it 23 County Supervisors...especially if this Holloway is the leader? Same old same old...easier to raise taxes and fees than to cut expenses.

Thursday, Jul 17 at 1:38 PM bajaskier wrote ...

Excellent logic, Lee! Is this the same logic that allows you to keep a title for a house after you sold it to the city?

Thursday, Jul 17 at 1:13 PM Roger wrote ...

Hey Lee how about people from outside of Milwaukee County NOT comming to shop here or the people that live on the border of Milwaukee County going on the other side of the border to shop?

Thursday, Jul 17 at 12:55 PM Arty D wrote ...

One of the logic flaws here is that there are only 2 choices for buying this camera. I reality, I would buy this camera from amazon.com and pay $500 for a $500 camera. No Milwaukee county tax, no Waukesha county tax, no WI state sales tax. (I know, I am supposed to pay the tax with my income tax, but I will forget by then.) This is what happens when taxes get too high, people avoid them any way they can.

Thursday, Jul 17 at 12:26 PM Greg - Milwaukee wrote ...

Holloway's logic is too stupid to even comment on. I pity Scott Walker for having to even justify his position and having to work with this clown.

Thursday, Jul 17 at 12:18 PM hsgbdmama wrote ...

Or I save the entire $533, choosing to put it away for future gas, food, home energy, and tax increases.

Thursday, Jul 17 at 12:11 PM Sam wrote ...

Over and above the poor example it would be nice if he had the right data. I don't believe Waukesha County ever implemented the option 0.5% sales tax. Therefore the savings is actually $7.50 and it would make sense to leave the county to buy the camera.

Thursday, Jul 17 at 12:11 PM Marcia / Appleton wrote ...

I am not a Milwaukee county resident. However, I used to enjoy the occasional shopping trip to Milwaukee. Not anymore. And how about tourism -- people who visit Miller Park, the zoo, and downtown. I think they'll think twice before making a purchase in Milwaukee. Everyone suffers.

Thursday, Jul 17 at 11:40 AM sims wrote ...

Hey Mr. Holloway, I live and work in Milwaukee county. Increasing the county sales tax will directly affect my budget. I don't go out of the county to buy stuff (nor do I need help figuring out how much gas would cost me to do so). Visitors and non-resident workers would hesitate about making large purchases here and when visiting other places I would seriously consider a making a large purchase there if the sales tax savings was enough. Milwaukee Co. the place not to shop; an island indeed.

Thursday, Jul 17 at 11:37 AM Nobel Prize for Holloway??? wrote ...

Wow - I can't believe that he allowed this to be put out! This sounds like my kid trying to justify something he knows is bad! Yes, Lee, if someone went across town to buy one $500 camera, driving a car like you said, blah, blah, you can posit a situation where gas prices and locations prove your point. Way to go - nice job! In fact, you have shown yourself to be such an economic genius you shouldn't be wasting your brains in city government. You should hit the private sector... now.

Thursday, Jul 17 at 10:30 AM Mr. Pelican Pants wrote ...

Who the hell is buying all these cameras?

Thursday, Jul 17 at 10:23 AM Amy P. wrote ...

Mdu: Most taxes are a tax on the poor and middle class because they have limited budgets that feel the impact of such taxes more than a wealthy person. If I'm rich, paying an extra $20, $30 dollars on a purchase is no big deal. If I'm on a budget, and have $300 to buy a new TV, the $30 in sales taxes may make or break the deal. Holloway is right in that people - low/mid class folk - aren't going to drive to outlying suburbs to purchase things. Way to create an self-imploding economy.

Thursday, Jul 17 at 10:21 AM Jeff Schallert wrote ...

And, umm, will there be a surtax for the Milwaukee County resident who, one day soon, takes the commuter light rail system over to Mike Crivello's? Or will his ticket price just be adjusted to cover the amount of money he thought he was saving?

Thursday, Jul 17 at 10:13 AM Arnie Behnke wrote ...

Since Mr. Holloway uses a county vehicle and fuel, I am sure he really doesn't comprehend the real world that the rest of us live in. This is another amazing display of the Milwaukee Syndrome

Thursday, Jul 17 at 10:04 AM mdu wrote ...

Is this not more a tax on the poor than the rich?

Thursday, Jul 17 at 10:02 AM tyler d. wrote ...

"1-cent increase" is incorrect, isn't it? It's a 1 percent increase. Quit trying to fool everyone by implying that it's only a penny, which it is not.

Thursday, Jul 17 at 9:54 AM Roger wrote ...

Hey Lee how about a $5,000 to $50,000 auto would it be worth it then?

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