Wisconsin Gov. Walker’s Speech: More Red Ink And Blowing Smoke
On Tuesday night Wisconsin Governor Scott Walker will enter the statehouse amid what is expected to be a major winter storm blowing across the state. Winter winds are expected to be at blizzard proportions.
Governor Walker will stand in the State Assembly Chambers and give his first State Of The State address. It is then a wind of a different type will blow.
Some might refer to Governor Walker’s gusts as blowing smoke.
News that Governor Walker signed a bill that removes two years of taxes for any business that moves to Wisconsin sounds grand on the face of it. After all, it gives the impression that Walker is pro-active and determined to fulfill his campaign pledge of creating jobs.
There was also the report that Walker added $25 million in tax credits to a state economic development program. Again, the push for economic development is in high gear. Who could oppose such bold and decisive action in this time of economic turmoil?
What is not so apparent at first blush when reading about all this energized action from the Walker team is that as a result of these moves, and others like it, the size of the state’s huge budget deficit is growing.
Let us not forget that just a few months ago there was a hue and cry that serious-minded Republicans were needed to be elected to stop the red ink from flowing. They repeated in mantra-type speeches the state faced a $3.3 billion shortfall in the 2011-’13 budget, and careless spending had to end.
And now!
Yet the special session bills that Walker and his Republicans seem intent on marshalling through the legislative process increases the red ink in the 2011-’13 budget by up to $142 million.
Clearly deeper budget cuts in Wisconsin are going to be required from health programs, education, transportation, local aids, and countless other sources to make up for the cozy relations that business is about to enjoy in Wisconsin.
As I have been watching all this take place at the Capitol I have pondered two points.
First, after Congressional Republicans in Washington forced an extension of the Bush tax cuts in late December many of those same people are outraged that the federal deficit projections continue to be a red-inked tsunami.
It was as if those Republicans had not read the nonpartisan Joint Committee on Taxation report showing households earning more than $1 million a year would reap nearly $31 billion in tax breaks under the GOP idea of allowing the rich to keep their tax cuts. Or that all those tax cuts would create more red ink for the federal government.
Republicans like to paint liberal Democrats as the ones who spend foolishly without regard to the fiscal impact on the budget. Should not the Republicans admit to foolishly providing tax cuts of one type of another at every opportunity regardless of the harm it causes to the budget?
Second, I thought that the Republicans were opposed to stimulus funding. Was it not the GOP that scoffed at the idea of using the government to prime the pump of the economy for the past two years? Yet, here in Wisconsin the GOP are now passing clearly stimulative tax measures, and we are all to think it is a good idea.
If only blowing smoke were an art form………..
The bottom line is that there will be a price to be paid for the ‘anything for business’ atmosphere that is all the rage in Governor Walker’s Wisconsin.
The ones smoking the cigars at the Madison Club are not the ones to feel the wrath of the budget cuts. The inner city kids, the elderly, college students, public employees, and countless others will suffer.
I suspect when the State Of The State speech is over there will be many such as myself who will feel the need to step outside into the cold brisk snowy night and clear our heads.
Question is who will air out the Assembly Chamber after Walker’s speech?
Yes, I will stand on what I think to be correct views concerning tax policy.
First, the tax rates should revert to the percentages they were during the Clinton years.
Second, stop drinking the GOP kool-aid. Tax cuts do add to the deficit. The reason for this is simple. Real simple. Lost tax revenue is never completely recovered by the ‘stimulas’….dare I day that word….effect that the cut was aimed to create.
Look at Reagan’s promises, and then the impact on the nation. To put it simply the tax cuts did not pay for themselves. They never do.
Third,, since there has been a trend since 1980 to always reduce taxes further and never to rasie taxes even though costs for services and programs continue to increase is just absurd.
That the ideological motive from conservatives that try to accomplish ‘tax cuts forever’ is not to really put more money into the hands of people but instead meant to starve off government programs proves my point about the true nature of these types.
I suggest reading/viewing the folks such as David Brooks (no raving liberal) and others who understand that at some point we need to re-invest in America in a meaningful way with new revenues. TAXES.
Have you followed David Stockman over the past few years?
This whole idea of increased taxes and the way to implement them, and the reasons we need to face this matter is not new.
In 1984 I strongly worked for and promoted Walter Mondale who was honest in the campaign and said that he would raise taxes. Not sexy. But an honest answer to the issues of the time.
The race to the bottom is underway, and leading the charge are those who argue for now new revenues. It is folly to pretend that this nation can be continually great without the infusion of cash for infrastruture, investment in new ideas that will spawn new cycles of growth and jobs, and higher skilled and better educated people.
I know that lower taxes make you feel good.
But when China, India, Brazil, and others pass us by just nod and wave and thank the GOP for your tax cut.
What is the fair rate of taxes that the rich should be forced to pay? Those top income earners already pay the vast amount of taxes, and each carries dozens of less fortunate citizens on their shoulders. Beyond this they keep the arts moving and donate huge sums to charities and causes of all sorts. So, considering your vast command of public policy, what is the fair amount that those who earn over one million should pay?
As far as the budget goes, tax cuts never increase a deficit, only spending does. If the district cuts my pay by 10%, my bills remain the same, only my income or revenue changes. Perhaps if we had had adult leadership instead of the Doyle years, the impending cuts would not be so painful, but that is really water under the bridge now.
Looking forward, we must hold Walker to the promise to create 250,000 jobs. This is what is really important to “those who will suffer.”