John Simonson
Mineral Point
Gov. Walker proposes to all-but-eliminate collective bargaining for government employees to fix a $137 million deficit in this year's budget, and to drastically cut funding for public services to close a projected $3.6 billion deficit over the next two years. There are better alternatives.
It's foolish to cut vital public services to address the current deficit and two-fifths the next biennial budget deficit which are short-term effects of the Great Recession. Wisconsin's Constitution has permitted borrowing since 1969, an option used to help get the State through previous economic downturns. Borrowing $137 million this year and $700 million in each of the next two years would leave a more manageable $ 1.1 billion (the "structural deficit") to be paid for in each of the next two years with either reduced expenditures or increased revenues. Here are some options.
Eliminating a few of the state's estimated $3 billion in "tax expenditures" could eliminate the budget deficit while also increasing tax fairness. Levying an income tax surcharge of one half of one percent on Wisconsin millionaires would generate over $1 billion. Increasing the sales tax by one percentage point would yield about $800 million.
Extending the sales tax to selected personal and professional services, and taxing capital gains at 100 percent would generate over $600 million.
Taking away workers' rights and gutting vital public services are being touted as necessary to deal with the state's budget deficits, but far less destructive options are available.
Mineral Point
Gov. Walker proposes to all-but-eliminate collective bargaining for government employees to fix a $137 million deficit in this year's budget, and to drastically cut funding for public services to close a projected $3.6 billion deficit over the next two years. There are better alternatives.
It's foolish to cut vital public services to address the current deficit and two-fifths the next biennial budget deficit which are short-term effects of the Great Recession. Wisconsin's Constitution has permitted borrowing since 1969, an option used to help get the State through previous economic downturns. Borrowing $137 million this year and $700 million in each of the next two years would leave a more manageable $ 1.1 billion (the "structural deficit") to be paid for in each of the next two years with either reduced expenditures or increased revenues. Here are some options.
Eliminating a few of the state's estimated $3 billion in "tax expenditures" could eliminate the budget deficit while also increasing tax fairness. Levying an income tax surcharge of one half of one percent on Wisconsin millionaires would generate over $1 billion. Increasing the sales tax by one percentage point would yield about $800 million.
Extending the sales tax to selected personal and professional services, and taxing capital gains at 100 percent would generate over $600 million.
Taking away workers' rights and gutting vital public services are being touted as necessary to deal with the state's budget deficits, but far less destructive options are available.
