MILWAUKEE — For some people in Milwaukee, a 2% sales tax jump may not seem like much. But for others, it will make an impact on the way they run their business or purchase in daily life.
Jeaninne Bauer has been an independent dog groomer for 16 years. She said she worked hard to keep her prices steady during the pandemic and amid recent inflation. But with the city sales tax bump, Bauer said her prices will now go up.
"I tried to maintain [prices] at a certain level so that the people who are on fixed incomes, the elderly, which I have a lot of them coming in, don't have to say well should I eat a little extra bit this month or should I take the dog to the groomer," said Bauer.
Bauer said, as a business, she'll now pay higher taxes on electricity, grooming products, and tool maintenance.
She expects to raise the price of a single groom by $5.
"There might be people who might say, you know, I could go to Brookfield, they're not changing their sales tax," said Bauer.
The Common Council voted Tuesday 12-3 to approve the tax as Milwaukee faces a fiscal cliff amid a deeply underfunded pension system.
Other taxable services that will be impacted by the 2% increase include rooms or lodging for less than a month, admissions to amusement, athletic, and entertainment events, and laundry or dry-cleaning services.
"I either increase the prices or I take a hit on my income. And this is my income," said Bauer.
The tax won't hit everything. Under the state tax code, certain goods, including groceries, gasoline, and prescription medication, are exempt.
But items like clothing, computers, and office equipment fall under the new tax.
This may squeeze some people who are already tightening their belts after We Energies raised rates this year by 11 percent. Rent prices are also up 13 percent from the start of the pandemic and interest rates have been on the rise.
The frustration was evident at Monday night's public hearing on the tax.
"What happens in a society when you squeeze people past their point of subsistence, when they can no longer afford the actual goods they need to sustain their lives? This sales tax isn't happening in a vacuum," Robert Penner with the Party for Socialism and Liberation Milwaukee said.
For Bauer, who also spoke at the meeting, concerns about the tax hike go beyond her bottom line. It's also the fear of losing long-time loyal customers.
"They very well may go somewhere else," Bauer said.
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