Previously I posted about how Governor Doyle’s budget proposal to increase the real estate transfer tax. After a few days of contemplating this proposal, I began to think more in depth of his reasoning. As we all know that Wisconsin has a pretty large deficit, and money needs to be raised in order for us to alleviate some of this debt. Governor Doyle has been elected, and is left to try to buff up this problem.
Realistically, we do need to understand that this money does need to come from some where. He did, in his campaigning, emphasize that a tax increase is not in his vocabulary. Granted the state real estate transfer fee is indeed a tax, it is also one that can generate a income to alleviate some of this deficit with out a significant blow to the economy. It will just take a little time for this proposal to run its course. What I mean by this is, people do buy and sell in the same market. People that are selling their home pay this increase...and the people they buy from are going to be paying this increase as well.
The trouble is it does play a role to many real estate professionals, due to the fact that even more money is being sucked out of the sellers proceeds. Which means that Realtors are going to get slammed even harder when justifying there commission rates.
In my opinion, this proposal really might not be a bad idea after all. It needs time to run its course. Again, this money does need to come from somewhere. Raising taxes upright would cause immediate problems. Increasing the state transfer fee would be only effecting the professionals and the sellers of real property.
Conclusion: Government is to large and is sucking the money out of the system. Money needs to be raised in order to relieve a portion of this deficit. I am not happy about the proposal, but I am sure governor Doyle is open to suggestions to raise money without immediately effecting the Wisconsin homeowners.
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