Monday, February 21, 2011

Wisconsin Explanation

The problems in Wisconsin are based on ignorance and ideology. It's worth looking at the data behind the alleged budget mess Wisconsin got itself into:

The Fiscal Implications of Recent Wisconsin Policy Measures

From the Legislative Fiscal Bureau, roughly analogous to the Congressional Budget Office, an assessment (p.11) that notes the tax revenue implications of three bills implemented under the current Administration:

Our estimates include the impacts of all law changes enacted in prior years and three of the January 2011 Special Session bills: (a) SS SB 2, which federalizes the treatment of health savings accounts; (b) SS AB 3, which would create an income and franchise tax deduction or credit for businesses that relocate to Wisconsin; and (c) SS AB 7, which would create an income and franchise tax deduction for businesses that increase employment in the state. SS SB 2 has been enacted into law as 2011 Act 1. The other two bills have passed both Houses of the Legislature, and the Governor has indicated that he will sign them. It is estimated that, together, these three bills will reduce general fund tax collections by $55.2 million in 2011-12 and $62.0 million in 2012-13.

This means approximately $117.2 million of any shortfall over the next two fiscal years is a direct consequence of measures that have just been implemented by the current Administration.

More on this from Forbes.

I am bothered by the blind ideology that is driving much of the change happening at the election box and legislatures nationwide. The dangers of oligarchy are far more significant in this country than tyranny ever has been. Thus, when the rights of workers are weakened as they lose economic clout, there is potential for a serious decline in national standards of living and the clout of the republic.

2 comments:

abellia said...

You know that this has nothing to do with the budget and everything to do with union-busting and politics. It's simply retribution on those who didn't support the current administration in the election.

It's so petty and infantile. How do these people get elected? Why do people keep voting for them?

The thing that I don't understand is all the people who support lowering living standards for public employees. Don't they see that the problem isn't the compensation of public employees. The real problem is the crappy benefits and pay that many receive in the private sector.

steven said...

"It's simply retribution on those who didn't support the current administration in the election."

That's politics, abellia. That's what it is, regardless of what party is in power. People keep voting for politicians because they believe the lie that we need politicians to have a civilized society. The truth is exactly the opposite. Only the wealthy need politicians, to enforce their rules on the rest of us. What more could the wealthy ask for than politicians that they can bribe and useful idiots to keep the same politicians in positions of power.