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Exempting childcare essentials from sales tax is the right thing to do

By Editorial Board

According to the American Academy of Pediatrics, an average baby will go through from six to 10 diapers, each day.

As any parent knows, the cost of these essential items adds up quickly. The average young family may spend $80 or more a month, on diapers alone, or more than $900 a year.

This does not include the dozens of other essential items that are needed for the safety and care of young children.

A law change proposed by a pair of Republican legislators, Sen. Jesse James, of Altoona, and Rep. David Steffen, of Green Bay, would help ease the burden on young families, by eliminating sales taxes on diapers, cribs, strollers and other baby essentials.

Titled the “Tiny Tot Tax Cut,” its authors say it is intended to help reduce the financial stress on young families and “demonstrates our state’s commitment to prioritizing the most vulnerable Wisconsinites.”

The measure is a long-overdue and worthwhile investment in young families in the state. Making it easier to raise a family in Wisconsin, will have long-term economic benefits for the state, by encouraging young people to locate and remain at jobs here.

While saving families a few dollars a week in taxes may not be as flashy as giving a big check to a multi-billion dollar company, or hefty tax breaks to political donation high-rollers, it is fundamentally the right thing to do.

It will also be a boon to retailers, as cashstrapped young parents will put the money they are saving on sales taxes for their children’s essential needs, back into additional purchases for goods and services.

Making it less expensive to raise a child in Wisconsin, can also serve to eliminate a potential roadblock toward families choosing to have additional children. This would be a benefit, particularly in rural areas of the state, which are facing populations that are becoming demographically skewed toward older residents.

The sales tax has been the perceived golden child for state and regional governments, looking for a painless way to raise tax revenue needed for government infrastructure. A major, and valid, criticism of sales taxes, especially those on essential items, such as diapers, is that they put a disproportionate burden on lower classes.

A few dollars on a purchase has significantly greater impact on the household of someone at the poverty level, than it does on someone earning higher amounts.

This proposal could help mitigate some of the regressive nature of the sales tax, by recognizing more items as essential for the well-being of all families, regardless of if they are rich or poor.

Wisconsin legislators should move quickly to adopt this level-headed and painless approach, to making a significant investment in the financial health of young families, while looking to the long-term goal of encouraging additional young people to call Wisconsin their forever home..

Members of the Courier Sentinel editorial board include publisher Carol O’Leary, general manager Kris O’Leary and Star News editor Brian Wilson.

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