Right Thinking From The Left Coast
We didn't lose the game; we just ran out of time. - Vince Lombardi

Tuesday, April 19, 2011

The Wisconsin Aftermath

Remember the Democratic talking point as you read this: the reforms in Wisconsin were all about union-busting, not the budget.  Got that?  Good.

The property tax bill on the typical Wisconsin home would rise by less than 1% annually over the next two years under Gov. Scott Walker’s proposed budget, the Legislature’s nonpartisan budget office reported Friday.

The Legislative Fiscal Bureau also said Walker’s plan would put the state’s finances in the best shape they’ve been in for more than 15 years.

It found the so-called structural deficit - the imbalance between spending and tax revenue as laid out in state law - for the 2013-’15 budget would be $31 million. That assumes Walker’s budget passes the Legislature without new spending increases or tax cuts that would add to the deficit.

Under its existing form, Walker’s budget leaves the state with a fraction of the structural deficits seen in the past eight budget cycles. The next lowest structural deficit in recent years was $1.5 billion, or 48 times as much as what Walker’s proposing.

There’s a lot going on in that budget and I suggest you read the whole thing.  School funding is cut, but so are tax subsidies to businesses.  Some money is shell-gamed from reserved funds.  It also ends a state income tax credit for poor people that offsets the FICA payroll taxes—said taxes theoretically going to their own retirement.

There’s plenty to criticize if you’re a liberal or even just leftish.  But what can’t be criticized is the math—the budget is coming into line.  That’s more than you can say on the federal level, where S&P issued a new warning about US debt and our politicians have found the amazing courage to “consider” cutting tax subsidies for the environment-ruining, car-destroying, poor-people starving boondoggle called ethanol.

Posted by Hal_10000 on 04/19/11 at 12:08 PM in Politics   Law, & Economics  • (0) TrackbacksPermalink
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