Tag Archives: Wisconsin

State Workers Pay Taxes Too

During a discussion the other day, a SPEA staff member made a point that seems to be lost in the contending, highly ideological arguments about the standoff in Wisconsin. She noted that public employees are also taxpayers, and that the Governor’s insistence that he is acting in the “interests of the taxpayers” didn’t seem to include the interests of that particular subset of taxpayers.

Her observation has just been quantified and amplified by Robert Russell, a Wisconsin state economic analyst, who pointed out that state workers are not only taxpayers, but consumers.

According to Russell, if public employee salaries are cut through increased withholdings as Walker is proposing, by an amount large enough to fill the $137 million budget gap, the resulting drop in consumer spending will lead to: 1) a loss of over 1,200 nongovernment jobs; 2) a loss of about $100 million in business sales statewide; 3) a loss of nearly $35 million in personal incomes of nongovernment employee households; and 4)  a loss of nearly $10 million in state tax revenues.

This is not about economics. (Indeed,  Governor Walker seems blissfully ignorant of basic economics.) It’s about ideology, hubris, and political payback.

Comments

Class Warfare

One of the reasons I left the GOP was impatience with party rhetoric equating taxes with theft.

It seems to have become a Republican article of faith that it is “immoral” to tax people for the services they receive, let alone for purposes of redistribution (i.e., using tax dollars to help poor folks). Those who work, we are told, should be allowed to retain the fruits of their labor. (I guess it is impertinent to ask what portion of those “fruits” are the result of living in a society that provides roads and bridges on which to ship goods, police protection of social order, courts to enforce contracts, and all the other infrastructure necessary to conduct a trade or business.)

So how do these principled critics of redistribution and “theft” justify the Wisconsin Governor’s attack on public workers—and his effort to take money from them in order to enrich the wealthy?

It should be emphasized that public workers in Wisconsin are not responsible for the state’s fiscal problems, and stripping them of their bargaining rights won’t solve those problems. According to reports in the New York Times and elsewhere, the Governor was the one who precipitated the state’s projected $137 million shortfall. Just last month, he and the Republican-controlled legislature gave away $117 million in tax breaks, mostly to businesses and for private health savings accounts.

If it weren’t for those tax breaks, according to the state’s Legislative Fiscal Bureau, the state would have had a surplus.

It’s interesting. Every time someone suggests reversing the Bush tax cuts for the richest 2%—tax cuts that left current rates at their lowest point in fifty years—the GOP screams about “class warfare.” I want to know why it is class warfare when we ask the rich to pay their fair share, but it isn’t class warfare to take money from hardworking public servants to pay for tax breaks for the rich.

I’d also like to know when the party of fiscal responsibility became the party that robs the poor to give to the rich.

I guess redistribution is okay when it’s upward.

Comments