Tag Archives: trickle-down

Wisconsin projects $100 million shortfall under current budget

Wisconsin is expected to take in $100 million less in revenue than it expected by the end of the 2015–17 budget, the nonpartisan Legislative Fiscal Bureau reported today.

The shortfall is the result of a $158.2 million decrease in projected tax collection. Some spending will have to be cut from the budget.

Democrats said that tax revenues have fallen short because Republicans have failed to generate jobs that would increase Wisconsinites’ take-home pay. Several noted the irony of the news coming so closely on the heals of Gov. Scott Walker’s State of the State address, during which he touted the state’s economy and finances under his leadership.

Walker has slashed many state programs in order to provide large tax breaks to the wealthy and to corporations. That strategy, known as “trickle-down” economics, has been the mainstay of the GOP’s financial strategy for nearly four decades.

“Big tax breaks for businesses do not trickle down to the pockets of our citizens,” said state Sen. Jon Erpenbach, D-Middleton. “Let’s try something new like prioritizing funding for education, increasing the minimum wage and roll back some business tax breaks in favor of middle class tax cuts. We know what works to improve the economy, unfortunately there is not a Republican out there that will consider proven solutions.”

Assembly Democratic Leader Peter Barca, D-Kenosha, said, “The first step toward improving our state’s finances is accepting federal BadgerCare funds to provide health care to roughly 80,000 Wisconsinites at a savings of more than $300 million to taxpayers over the next two years.”

Senate Minority Leader Jennifer Shilling, D–La Crosse, said, “Democrats will continue to fight for investments in local schools, worker training and infrastructure projects to create jobs and move our state forward.”

The budget shortfall comes after Wisconsin experienced the worst year for mass layoffs and plant closing since 2010 last year.

But the shortfall for 2015 is better than the $2 billion deficit the state had leading into the 2015–17 budget negotiations.

GOP candidates reach out to poor voters but have nothing to offer them

Republican presidential candidates said Saturday their party must do more to convince poor Americans that conservative policy — and not an active federal government — will expand economic opportunity.

But the White House hopefuls, addressing a conservative economic forum in the early voting state of South Carolina, didn’t agree on the details and had nothing new or specific to offer other than their wish that poor people would vote for them.

Moderated by House Speaker Paul Ryan, the event gave a half dozen candidates the chance to champion long-standing conservative ideas about alleviating poverty, such as letting states spend federal money on safety net programs without federal strings. That’s already happening in Wisconsin, where Republicans have started testing food stamp recipients for alcohol and drugs and have created lists of what they can and cannot buy with public assistance.

Ryan also said that spending public money on independent charter schools and providing vouchers for private-school tuition would help the poor, although many such schools are run as for-profits and have lower standards and success rates than public schools. In addition, in many cases vouchers do not cover the entire tuition at good schools and poor people can’t afford to pay the difference, as wealthy and middle-class parents can.

For the past 30 years, conservative Republicans have said that eliminating taxes on corporations and the wealthy would help the poor, but that approach known popularly as “trickle-down” economics, has had the opposite effect. The gap between rich and poor is wider than it’s ever been. In states such as Wisconsin that have provided generous tax cuts to the wealthy, the middle class is shrinking at historically high rates.

New Jersey Gov. Chris Christie bragged that he doubled a key tax credit for low-income workers in his state, but he met opposition from 2016 rival Ben Carson, who countered that the federal Earned Income Tax Credit is a “manipulation” of the tax code.

Carson calls for an across-the-board tax rate, with no deductions or credits for any household or business. He criticized progressive income tax rates — the framework that has endured though decades of Republican and Democratic administration. “That’s called socialism,” he said. “That doesn’t work in America.”

Former Arkansas Gov. Mike Huckabee pitched his “fair tax,” a single-rate consumption tax to replace all other taxes on wages, investments and inheritance. “It’s a powerful unlocking of the economy,” Huckabee said. However, he said he would allow something similar to the Earned Income Tax Credit to ease the tax burden on low-income households.

Responding to Carson, Christie said he does not necessarily prefer the complications of the existing tax code. “If we were starting from the beginning … we could do things a lot differently,” Christie said. But, “We have to be practical.”

Missing from the lineup Saturday were two leading GOP contenders: businessman Donald Trump and Texas Sen. Ted Cruz.

During his remarks, Florida Sen. Marco Rubio was interrupted multiple times by protesters angry about his immigration policy.

“He has brought fear to our community and we are here to tell him that our community needs to be treated with respect and dignity,” said Yadira Dument of New York, one of several protesters escorted from the forum by police and security guards. As a pair of protesters shouted, Rubio said, “We are going to enforce our immigration laws.”

Rubio was key in a bipartisan effort to overhaul immigration law in the past, but he backed away from the initiative when it failed to pass in 2013. Now, as a presidential candidate in a party whose grassroots voters support deporting Latino immigrants and building a wall on the Mexican border, he’s running away from it.

The conference came as Republicans try to improve their standing among poor Americans, who favored President Barack Obama in 2012, according to surveys of voters leaving the polling station.

Ryan said the old “War on Poverty,” a phalanx of government programs largely from Democratic administrations, “has been a stalemate.” Conservatism, he argued, “can open up a renaissance,” dismantling a system that “isolates the poor.”

He failed to explain, however, what he would do differently that might realistically help the poor.

About one in seven people lives below the federal poverty rate, which in 2014 was measured at about $19,000 per year for a two-parent household with one child, the government says.

The candidates Saturday mostly agreed that traditional welfare discourages work. They also rejected a minimum-wage increase and said the private sector and religious community should take on more responsibility for fighting poverty, but couldn’t say how the former tactic would work or how the latter one would be encouraged.

“Compassion is not measured by how much money you spend in Washington,” former Florida Gov. Jeb Bush contended. Instead, he said, “It’s acting on your sense of consciousness.” But considering the excesses of Wall Street and corporate America, it seems obvious that a sense of consciousness exists in the most influential sectors, which are overwhelmingly Republican.

Bush has proposed eliminating several federal programs and shifting money to states in the form of block grants to help poor families. He hasn’t explained how this would improve on the current system.

Christie and Ohio Gov. John Kasich said the federal government should empower states, but Christie said Obama “doesn’t trust governors,” Democratic or Republican, to enact locally tailored programs. Perhaps that’s because Republican states have ignored the poor and dismantled programs to help them.

Christie said his party must reach out in ways it hasn’t. “We need to be going into African-American churches … into the Hispanic community,” he said. “We need to go there, show up and campaign in places where we are uncomfortable.”

That last confession, perhaps, was the most genuine thing said on Saturday afternoon.

Wisconsin Republican leaders endorse Marco Rubio

Wisconsin state Assembly Speaker Robin Vos and 19 other Republican state lawmakers are endorsing Florida Sen. Marco Rubio for president.

Vos announced their backing Friday, 18 days after Wisconsin Gov. Scott Walker’s campaign flamed out. Rubio is coming to Wisconsin next month to raise money for Vos and Wisconsin Assembly Republicans.

Other Wisconsin lawmakers announcing their support for Rubio include Assembly Majority Leader Jim Steineke, Speaker Pro Temp Tyler August and Rep. John Nygren, co-chair of the Legislature’s powerful budget committee.

Vos said in a statement that Rubio “has the right conservative vision for our country” and “celebrates what is great about America’s past, but provides a new generation’s leadership.”

In fact, Rubio’s agenda is exactly the same as Walker’s. He embraces the tried-and-disproven trickle-down economic formula that brought on the Great Recession and has toppled the middle class. He denies that climate change exists. He’s every bit the lap dog of the American Legislative Exchange Council, or ALEC, that Walker is, which means he wants to eliminate taxes for corporations and the wealthy, end nearly all entitlement programs and shift many of the functions currently carried out by the government to the private, for-profit sector.

Rubio’s vision of higher education sounds like a system of for-profit technical colleges.

When it comes to the Middle East and foreign policy, he’s turned as hawkish as the majority of other GOP hopefuls, except for Lindsey Graham, who has promised to declare war on Iran on Day One of his administration. Rubio’s newly found mlitancy is a 180-degree turn from his 2012 position on foreign relations.

A son of Cuban immigrants, Rubio differs from the majority of other GOP hopefuls only on immigration, where his stance is closer to that of his mentor Jeb Bush. Both men want to offer immigrants a path to citizenship.

Essentially, a Rubio administration would mimic that of George W. Bush, but GOP leaders hope that voters will be distracted from realizing that due to his fresh, youthful looks and Hispanic surname. And, unlike Walker, he can handle the national media without coming off like a lost village idiot who happend to wander in front of television cameras.

If Wisconsin Republicans are lining up behind Rubio, it’s because of his perceived electability, not because he plans to do anything different from the other Republican presidential hopefuls. Rubio is the quintessential “lipstick on a pig” that Sarah Palin referred to when running for vice president in 2008.

Rubio is said to be the candidate whom Democrats fear running against the most. For the time being, however, both Hillary Clinton and Bernie Sanders lead the entire Republican field in Wisconsin, according to recent — and all-but-meaningless — polls.