A tipping point. The fork in the road. These phrases accurately describe the choices Wisconsin lawmakers will make as we begin work on Governor Doyle's budget. Will we choose the path he has laid out for us, which contains huge tax increases on Wisconsin citizens, a 7.7 percent increase in spending and almost no reductions in state employees; or will we choose to grow our economy by empowering small business and entrepreneurs to create family-supporting jobs?
When Democrats gained complete control of state government last November, many of us wondered if they would simply adopt their grow-government strategy or would they work with Republicans to actually grow the economy. Unfortunately, the proposed budget clearly shows they have fallen back into their old standards of punishing producers, hurting taxpayers, rewarding welfare recipients and letting criminals out of jail early.
Soon after the mark of the first hundred days of the new Democrat-controlled Wisconsin Legislature last week - which also happened to fall on Tax Day - it seems a worthwhile exercise to examine what the campaign trail promise for change actually means in practice for Wisconsin's economy and our working families.
Democrats promised they would make sweeping policy changes and get more done in the first 100 days than the previous Legislature accomplished in the last session. So far, the Assembly has met a total of five times and has voted on such worthwhile policies as designating the Totogatic River as a Wild River. Nothing has been done to improve the economy, health care, or the general lives of families in this state. In fact, quite the opposite is true. The second day the Legislature met, Democrats voted to raise taxes by $1.2 billion in what they called their "economic stimulus" bill.
Certainly balancing the budget will be no easy task. At $5.9 billion, Wisconsin's budget deficit is among the top five highest in the country, and our deficit is predicted to rise in months to come. But the outcome of this budget will firmly draw a roadmap for Wisconsin's future. The choices made either will set us down the path of economic prosperity or they will continue to depress the economy and make this state less and less attractive for businesses and job growth.
Under Governor Doyle, Wisconsin's economic engine has been in steady decline. Since he took office in 2002, he has increased spending by 20 percent and increased borrowing by 60 percent. This, of course, all has to be paid for by the taxpayer, and hardly any of these increases really go toward stimulating Wisconsin's economy.
Last week, the Wall Street Journal named Wisconsin one of 10 states considering "major" tax hikes. Other states in this group include New York, Illinois, New Jersey and Washington. In a recent survey conducted by Chief Executive Magazine, CEOs were asked to define the best and worst states in which to do business. All five of these states placed in the bottom 10. Wisconsin ranked 43 out of 50. It's a clear indication that bad tax and regulatory climates deter business. For Doyle to consider a major tax hike is a foolish decision that will only compound the problem he has spent the last six years creating.
Now consider Texas - ranked by Chief Executive as the best state in which to do business. Texas is one of only six states to have no budget deficit going into this current recession. In fact, it has a surplus because of a $6.7 billion rainy day fund. Texas is known for its lenient tax structure, and also for its very effective economic development program. In the past five years, it has created 1.2 million jobs. Between November 2007 and November 2008, 71 percent of all jobs created in the U.S. were created in Texas.
Between March 2008 and March 2009, Wisconsin has lost 112,000 jobs. Yet, in that same time frame, we have gained 5,700 government jobs. Once again proving that the main promotion in this state is government growth, not private sector growth.
According to the Small Business Administration, small businesses annually generate 60 to 80 percent of all jobs created in the U.S. So in a time when we are losing jobs by staggering numbers, it's imperative Wisconsin implement policies that stimulate job growth in the private sector, not continue the Doyle model of oppressively taxing and regulating job creation.
This budget is full of tax and fee increases that continue to chip away at every working family's personal income. Doyle's budget increases taxes and fees by $1.7 billion. It increases property taxes by almost 8 percent, ($1.48 billion) over the next two years. That means the average homeowner will see a property tax increase of $316 even though home values are predicted to drop by 4 percent.
Because of irresponsible policy decisions and the use of one-time federal stimulus money that increase base budgets, the next budget will force lawmakers to either decrease services or increase taxes. Since there is rarely ever the political will to decrease services, the only option left will be to take it from the taxpayers. But what will be left to take?
It all comes down to choices. If Doyle and Democrats take us down this economically destructive path, the economic condition in our state will continue its downward spiral. If they reconsider their choices, reprioritize their wants, and reinvest in Wisconsin's economic engine, Wisconsin will become a much better place to live and do business.
Wisconsin's future is firmly standing at the fork in the road, hanging in the balance, dangerously close to tipping the wrong direction. The only hope is that those who campaigned for change six months ago realize this current path we are on is not the right direction for the people of Wisconsin.
- Rep. Robin Vos is the ranking Republican member on the Legislature's Joint Finance Committee.
When Democrats gained complete control of state government last November, many of us wondered if they would simply adopt their grow-government strategy or would they work with Republicans to actually grow the economy. Unfortunately, the proposed budget clearly shows they have fallen back into their old standards of punishing producers, hurting taxpayers, rewarding welfare recipients and letting criminals out of jail early.
Soon after the mark of the first hundred days of the new Democrat-controlled Wisconsin Legislature last week - which also happened to fall on Tax Day - it seems a worthwhile exercise to examine what the campaign trail promise for change actually means in practice for Wisconsin's economy and our working families.
Democrats promised they would make sweeping policy changes and get more done in the first 100 days than the previous Legislature accomplished in the last session. So far, the Assembly has met a total of five times and has voted on such worthwhile policies as designating the Totogatic River as a Wild River. Nothing has been done to improve the economy, health care, or the general lives of families in this state. In fact, quite the opposite is true. The second day the Legislature met, Democrats voted to raise taxes by $1.2 billion in what they called their "economic stimulus" bill.
Certainly balancing the budget will be no easy task. At $5.9 billion, Wisconsin's budget deficit is among the top five highest in the country, and our deficit is predicted to rise in months to come. But the outcome of this budget will firmly draw a roadmap for Wisconsin's future. The choices made either will set us down the path of economic prosperity or they will continue to depress the economy and make this state less and less attractive for businesses and job growth.
Under Governor Doyle, Wisconsin's economic engine has been in steady decline. Since he took office in 2002, he has increased spending by 20 percent and increased borrowing by 60 percent. This, of course, all has to be paid for by the taxpayer, and hardly any of these increases really go toward stimulating Wisconsin's economy.
Last week, the Wall Street Journal named Wisconsin one of 10 states considering "major" tax hikes. Other states in this group include New York, Illinois, New Jersey and Washington. In a recent survey conducted by Chief Executive Magazine, CEOs were asked to define the best and worst states in which to do business. All five of these states placed in the bottom 10. Wisconsin ranked 43 out of 50. It's a clear indication that bad tax and regulatory climates deter business. For Doyle to consider a major tax hike is a foolish decision that will only compound the problem he has spent the last six years creating.
Now consider Texas - ranked by Chief Executive as the best state in which to do business. Texas is one of only six states to have no budget deficit going into this current recession. In fact, it has a surplus because of a $6.7 billion rainy day fund. Texas is known for its lenient tax structure, and also for its very effective economic development program. In the past five years, it has created 1.2 million jobs. Between November 2007 and November 2008, 71 percent of all jobs created in the U.S. were created in Texas.
Between March 2008 and March 2009, Wisconsin has lost 112,000 jobs. Yet, in that same time frame, we have gained 5,700 government jobs. Once again proving that the main promotion in this state is government growth, not private sector growth.
According to the Small Business Administration, small businesses annually generate 60 to 80 percent of all jobs created in the U.S. So in a time when we are losing jobs by staggering numbers, it's imperative Wisconsin implement policies that stimulate job growth in the private sector, not continue the Doyle model of oppressively taxing and regulating job creation.
This budget is full of tax and fee increases that continue to chip away at every working family's personal income. Doyle's budget increases taxes and fees by $1.7 billion. It increases property taxes by almost 8 percent, ($1.48 billion) over the next two years. That means the average homeowner will see a property tax increase of $316 even though home values are predicted to drop by 4 percent.
Because of irresponsible policy decisions and the use of one-time federal stimulus money that increase base budgets, the next budget will force lawmakers to either decrease services or increase taxes. Since there is rarely ever the political will to decrease services, the only option left will be to take it from the taxpayers. But what will be left to take?
It all comes down to choices. If Doyle and Democrats take us down this economically destructive path, the economic condition in our state will continue its downward spiral. If they reconsider their choices, reprioritize their wants, and reinvest in Wisconsin's economic engine, Wisconsin will become a much better place to live and do business.
Wisconsin's future is firmly standing at the fork in the road, hanging in the balance, dangerously close to tipping the wrong direction. The only hope is that those who campaigned for change six months ago realize this current path we are on is not the right direction for the people of Wisconsin.
- Rep. Robin Vos is the ranking Republican member on the Legislature's Joint Finance Committee.
