Response to Mark Richards’ February 27, 2025 letter to the Peninsula Pulse
Dear Mark,
I saw your letter at https://doorcountypulse.com/letter-to-the-editor-can-we-end-this-conversation.
I noticed those ads too. There were also ads referencing sex crimes enforcement which were put out on the Crawford side. The subject of rape has also been used for advertisements in past elections. Some Kelly ads featured graphics about how Protasiewicz was soft on rapists, and some Protasiewicz ads insinuated an association between Kelly and bestiality. This is an article discussing the Protasiewicz ads: https://apnews.com/article/wisconsin-supreme-court-kelly-protasiewicz-horses-ads-9d9ce24151f9dd02fce0b59113bb5f54
It is not possible to regulate the content of advertisements for candidates. The freedoms of speech and the press are guaranteed in both the Wisconsin State Constitution and the U.S. Constitution. If candidates have focus groups or opinion polls saying that a particular topic is a top interest for likely voters, it appears that they will push it inasmuch as their campaign chests allow.
The state cannot keep candidates from airing ads about sexual violence, but it is possible for the state to change its tax system in order to compel candidates and political groups to reduce their overall paid media output.
Already some political activity is taxed at the federal level. Federal tax law for political organizations is too much to go into, but it is worth noting that there is a 10% excise tax on political expenditures for 501(c)(3) non-profit organizations, which is accompanied by a 2½% excise tax charged to the management. There are also 100% and 50% taxes which are charged as penalties: https://www.law.cornell.edu/uscode/text/26/4955
The taxing of political advertisements doesn’t have to be a left or right issue. Consider the states mentioned in these three articles which discuss the taxation of digital advertising:
https://www.taxconnex.com/blog-/sales-tax-marketing-advertising
The states which tax advertising are not limited to either Democratic or Republican run states. Both political parties, at least to some extent, support taxing advertisements. Although Wisconsin taxes “digital goods” with the regular sales tax, it doesn’t have an excise tax specifically targeting advertisements.
The state legislature could pass a bill authorizing an excise tax on advertisements, charged on top of the sales tax. An example would be how alcohol, though subject to sales tax, also is subject to excise tax: https://www.revenue.wi.gov/DOR%20Publications/pb303.pdf#page=5
Specific tax rates could be devised for different types of advertising, such as broadcasts, billboards, print, social media, and website ads. The overall intent could be to effectively double the cost of advertising, and with it, cut the number of ads in half from what they would be otherwise.
An excise tax could be paid by purchasers of advertising for all ads placed during a specific window of time prior to the more important elections. Broad exemptions could be added to protect businesses and ordinary individuals from paying it. Exemptions could be given to all entities which purchased a similar quantity of ads on a year-round basis, which made similar seasonal ad purchases in past years, or which made only small ad purchases.
Such an arrangement could generate tens of millions of dollars in tax revenue every time there is an important election in the state. The funds could go towards tax relief. Additional classes of goods could be made exempt from the state sales tax. Certain burdensome fees could be reduced or eliminated. The state should not waste the money on ads bragging that “You don’t have to vote to win”.
To enforce the excise tax, there could be a small logo from the Department of Revenue on every print or screen-based ad. When an entity pays its excise tax, it should be required to make a submission to a public, online database on the DOR website. Members of the general public, especially from the opposing political inclination, could personally check and see if the ads featuring the tax logo are in the database.
Entities getting around the tax by using direct mail printed and mailed to Wisconsin from out-of-state could be shamed by the opposing campaigns and their supporters. The stigma of getting around the tax would help to deter this practice. That way the tax would be largely self-enforcing.
There is a precedent for such a measure in the corporate world. When a corporation is subject to an unwanted outside group trying to acquire it through a “hostile takeover”, the business at risk of being taken over has a variety of options to pick from in order to make the buyout more challenging: https://www.investopedia.com/ask/answers/042315/how-can-company-resist-hostile-takeover.asp
When out-of-state political donors influence Wisconsin’s elections it is somewhat like a hostile takeover. Notice how the second item on the list, the “Staggered Board Defense” already has an equivalent for Wisconsin Supreme Court elections. The justices don’t all run at the same time. But an excise tax on advertisements, charged only within a window of time prior to the spendier elections, is more like the first item, the “Poison Pill Defense”. By making it more expensive for out-of-state donors to influence elections, that reduces the incentive for them to try it. If they were to try anyway, an excise tax out should both help cut down on the number of political advertisements they can afford, while also helping the common good.