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Fact check: Does congressional candidate Tom Nelson (D-WI) have a record of tax hikes and spending increases?

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Wisconsin Governor Scott Walker (R) and congressional candidate Tom Nelson (D)

September 29, 2016
By Fact Check by Ballotpedia staff

Does Wisconsin's 8th Congressional District Democratic candidate Tom Nelson have a record of “pushing big tax hikes and spending increases” on Wisconsin taxpayers?[1]

That is the claim made by Republican Governor Scott Walker, who has endorsed Nelson’s GOP rival, Mike Gallagher, in the state’s 8th congressional district race. Ballotpedia researched Nelson’s history on taxes and spending, and found Gov. Walker’s claim to be accurate.

Background

The 8th district seat is being vacated by the retirement of GOP Rep. Reid Ribble, who served three terms.

Nelson, a Democrat, represented Wisconsin’s fifth district in the Wisconsin State Assembly from 2005-2011. He was the Assembly majority leader from 2008-2010. Nelson ran for lieutenant governor of Wisconsin in 2010, but he and gubernatorial running-mate Tom Barrett lost to Scott Walker and Rebecca Kleefisch.

Nelson currently serves as the Outagamie County Executive, a nonpartisan elected position.[2]

Nelson’s challenger, Republican Mike Gallagher, served seven years on active duty with the U.S. Marine Corps. He also worked as the lead Republican staffer on the U.S. Senate Foreign Relations Committee, and is currently a senior market strategist with a global energy and supply chain management company.

Wisconsin State Budgets

Wisconsin operates on a biennial budget. The governor submits a proposed budget covering two fiscal years to the Legislature, which must approve it for the governor’s signature. During his time in the Assembly, Nelson voted on three biennial budgets.

FY 2006-FY 2007 Biennial Budget

Nelson’s first budget vote came during his first year in the legislature. He voted against the 2006-FY2007 budget, which called for more than $52.9 million in spending over the biennium. The budget also included a freeze on property taxes and other tax relief.[3]

FY 2008-FY 2009 Biennial Budget

During negotiation of the FY 2008-FY 2009 biennium, Nelson staged a five-day sit-in to protest that the legislature was more than 100 days late in passing the budget.[4] When the budget vote was finally held, Nelson voted for passage after several rounds of amendments. The final vote was 51-44.[5]

According to the Wisconsin Taxpayers Alliance, spending in FY 2008 was projected to be $28.09 billion, and $29.14 billion in FY 2009. The budget also contained new credits and deductions for Wisconsin taxpayers, and an increase in tobacco taxes.[6]

FY 2010-FY 2011 Biennial Budget

Several months before the FY 2010-FY 2011 budget was introduced in the summer of 2009, the Wisconsin legislature, with Nelson’s support, approved Senate Bill 62, a budget adjustment bill to increase income, business, hospital, and cigarette taxes by a total of $1.1 billion.[7][8]

The FY 2010-2011 biennial budget, also supported by Nelson, included new new taxes and fees totaling $1.92 billion. These hikes included a reduction in the income tax exclusion for long-term capital gains (from 60% to 30%); a new 3% tax on fuel supplier profits; a new 7.75% income tax bracket for the state’s highest earners; new hospital taxes; and an increase in cigarette taxes from $1.77 per pack to $2.52.[9][10]

Coupled with the $1.1 billion increase passed earlier in the year, taxes increased by $3.02 billion for FY 2010 and FY 2011 combined.[11] The tax increases were part of the legislature’s response to the 2008 financial crisis and $5.4 billion budget gap faced by Wisconsin.[12]

At the same time, the governor and legislature reduced 2010-2011 general fund spending by 3.8% over the previous biennium. However, the addition of $3.6 billion in federal stimulus funds produced a net increase in spending of 9% from FY 2008-FY 2009.[13] Nelson said he supported the tax increases and use of federal stimulus funds in the FY 2010 and FY 2011 budgets because, “We were facing almost a $5 billion deficit, and there were tough decisions that needed to be made, and leadership that was needed.”[14]

Outagamie County

During Nelson’s time as executive of Outagamie County, property taxes have increased by $24.80 per year, on average. According to Nelson’s congressional campaign website, the county budgets were the result of negotiations between Nelson and county Democrats and Republicans.[15]

The following is a breakdown of percentage changes in property taxes during Nelson's tenure:[16]

  • Up 1.84% in 2012 (+$13.02)
  • Down 0.24% in 2013 (-$1.74)
  • Up 1.07 % in 2014 (-$7.71)
  • Up 2.3% in 2015 (+$13.82)
  • Down 1.01% in 2016 (+$7.41)

Conclusion

Wisconsin Governor Scott Walker has endorsed Mike Gallagher in the 8th Congressional District race. In his endorsement, the governor claimed that Gallagher’s opponent, Democrat Tom Nelson, has a record of “pushing big tax hikes and spending increases.”

We checked Walker’s claims against the Nelson’s budget votes in the Wisconsin State Assembly, as well as the budgets he has proposed as Outagamie County Executive. By these measures, Nelson has voted to increase taxes and spending, which shows Walker’s claim to be true.

See also

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Launched in October 2015 and active through October 2018, Fact Check by Ballotpedia examined claims made by elected officials, political appointees, and political candidates at the federal, state, and local levels. We evaluated claims made by politicians of all backgrounds and affiliations, subjecting them to the same objective and neutral examination process. As of 2026, Ballotpedia staff periodically review these articles to revaluate and reaffirm our conclusions. Please email us with questions, comments, or concerns about these articles. To learn more about fact-checking, click here.

Sources and Notes

  1. WBAY, "Gallagher, Nelson to face off in 8th Congressional District race," August 9, 2016
  2. Outagamie County, "County Executive Office," accessed August 30, 2016
  3. State of Wisconsin, “Protecting Taxpayers, Investing in Priorities: 2005-2007 Wisconsin Act 25,” accessed August 30, 2016
  4. Wisconsin Gazette, “Candidates line up in Wisconsin congressional races,” accessed, August 30, 2016
  5. Wisconsin State Legislature, “Senate Bill 40:History,” accessed August 30, 2016
  6. Wisconsin Taxpayers Alliance, “Focus Newsletter Vol. 2007, No. 22,” accessed August 30, 2016
  7. Wisconsin Taxpayers Alliance, “Wisconsin Taxpayer Magazine, Vol. 2009 No. 12,” accessed August 30, 2016
  8. Wisconsin State Legislature, “February 2009 Extraordinary Session, State of Wisconsin, Assembly Journal,” accessed August 30, 2016
  9. State of Wisconsin, “Report of the Joint Survey Committee on Tax Exemptions: 2009 Assembly Bill 75,” accessed August 30, 2016
  10. Wisconsin Taxpayers Alliance, "Wisconsin Taxpayer Magazine, Vol. 77 No. 12,” accessed August 30, 2016
  11. Wisconsin Taxpayers Alliance, “Focus Newsletter, Vol. 2009 No. 12,” accessed August 30, 2016
  12. Office of Governor Jim Doyle, “State of the State Fact Sheet,” accessed September 29, 2016
  13. Wisconsin Taxpayers Alliance, “Focus Newsletter, Vol. 2009 No. 12,” accessed August 30, 2016
  14. Fox 11 News, “Congressional candidate Tom Nelson appears on Good Day Wisconsin,” accessed August 30, 2016
  15. Nelson for Wisconsin, “Home,” accessed September 29, 2016
  16. Outagamie County, “Budgets,” accessed August 30, 2016

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