
H/T: Grouchy Old Cripple
Why I'm Not Lining Up for Stimulus Handouts
We've been down the spending road, and the result is a state budget in terrible shape
By Milwaukee County Executive Scott Walker
Recently, a firestorm ignited in Wisconsin when I, as Milwaukee County executive, refused to submit a wish list to Gov. Jim Doyle for items in the federal "stimulus" package.
Gov. Doyle -- like other politicians -- had lined up at the federal trough begging for billions in "free money" to cover budget deficits and to fuel new spending. He and others simply couldn't understand and were outraged that I didn't join them, and that I didn't relent even after the president signed the stimulus bill into law.
My explanation is simple. First, this money isn't free. Second, under Gov. Doyle our state has borrowed vast sums of money and avoided making tough budget decisions while expanding government programs. In three biannual budgets since he took office in 2003, new state bonding exceeded new tax revenue collections by $2.1 billion. During good times, the governor had been borrowing money to underwrite expansions of health care, education and environmental programs. If he is bailed out now, the federal stimulus funds will only enable the governor and others to go on spending and even taking on new obligations that will lead to larger deficits down the road. Third, if we grow government rather than private-sector jobs, we will not help the economy. Strong leadership, honest budgeting and tax cuts would do a lot more.
This burst housing bubble that led to the recession was created when millions of people were allowed (or encouraged) to spend borrowed money on homes they couldn't afford and were later forced into foreclosure.
Apparently Washington politicians learned nothing from this process. They rushed to spend $787 billion of borrowed money on new government programs in the name of economic stimulus. But even this loan of taxpayer money -- essentially the largest mortgage in history -- will come due. When it does, our children and grandchildren will pay for this imprudence.
As popular as the federal "stimulus" package is with Washington politicians, it is more popular among state and local politicians who view federal money as a cure for their fiscal woes.
Wisconsin is afflicted with fiscal woes. In every budget he has signed, Gov. Doyle postponed difficult decisions using accounting gimmicks and excessive bonding to pay for ongoing operational costs. The most egregious example is the damage done to the transportation fund over the past six years, which uses state gas taxes and vehicle registration fees to fund road projects. The governor has raided the segregated fund for a total of $1.2 billion to cover ongoing operational costs for government programs. He's partially replaced the raided funds with $865.5 million in bonds.
As a result of borrowing against tomorrow to live for today, the governor left Wisconsin's budget vulnerable. So in the fall of 2008 when recession caused a sharp decline in tax revenue, the state was forced into the red.
Wisconsin now faces an unprecedented $5.75 billion budget deficit, fourth-largest in the nation. Many municipalities also face deficits. My county, however, finished fiscal year 2007 with a $7.9 million surplus and will break even for fiscal year 2008 when the books are closed next month. Why? Because we made tough budget decisions demanded by the taxpayers.
State and local officials who failed to do so are looking to the federal government for a bailout. But what happens when the stimulus money is gone? Is the federal government committed to funding the projects it will now underwrite forever? I'm not willing to bet on it.
The stimulus is a classic bait-and-switch. Once the highways are built and social-service case loads have increased, Wisconsin will be left with the bill to maintain the new roads and services. This will force Wisconsin to raise new taxes. Gov. Doyle and legislative Democrats are already discussing higher taxes on hospitals, retailers, employers and even Internet downloads to feed their spending addiction.
The stimulus is also a bait-and-switch on employment. While the stimulus package might create a few construction jobs, the federal money will run out and those workers will lose their jobs. Even worse, most of the money is actually spent on new government programs and on bailing out failed state and local governments.
For the vast majority of residents of my state, the stimulus funds will not help them pay the mortgage or replenish their depleted retirement savings as they worry about being laid off.
True economic stimulus creates sustainable private-sector jobs. The fastest, most effective way to create them is to reduce taxes and implement regulatory and fiscal policies that encourage job growth and economic investment. History has shown repeatedly from John F. Kennedy to Ronald Reagan that as taxes are cut, consumers spend more and investors put more money in the economy. This, in turn, creates jobs, and grows the economy.
Too many politicians confuse more government spending with economic recovery. I believe that's the wrong approach, and I will not submit a wish list for new government spending. Excessive spending will only lead to higher taxes, and that will drive jobs away when we need them the most.
We need to use these challenging times as an opportunity to streamline government and reduce the tax burden on working families. In 2002, during my first campaign for county executive, I promised to spend taxpayer money as if it were my own. If government -- at all levels -- were to do just that, we could reduce taxes and stimulate the economy. That would put people back to work again. And that is something on my wish list.


But I didn't think that either Jindal's substance or his style was right on Tuesday night, and I make no apologies for considering style important.


WASHINGTON — A $410 billion spending bill unveiled in Congress on Monday includes at least $3.8 billion worth of funding for the kinds of lawmakers' pet projects that President Obama has pledged to trim from future budgets.
The bill is meant to end a budget impasse left over from last year, after President
Bush threatened to veto the Democratic-controlled Congress' plan because of its cost. It would fund most federal agencies through the end of the current fiscal year, which ends Sept. 30. Those agencies are operating under a congressional extension of last year's budgets that expires next week. Congress approved full-year budgets last fall for only three departments: Defense, Homeland Security and Veterans Affairs.
Happy Birthday to the Republican National Committee, established on this day in 1856 to coordinate nationwide opposition to the pro-slavery policies of the Democrats. Republicans from many state parties held their first national organizational meeting in Pittsburgh on February 22, 1856. Presiding over this preliminary session was former U.S. Senator Lawrence Brainerd (VT), a resolute anti-slavery activist.
The next day, delegates chose the first Republican National Committee. New York's Republican state Chairman, Edwin Morgan, was then elected the first Chairman of the RNC. He had the immense responsibility of organizing the first Republican National Convention, to be held just four months later in Philadelphia. Morgan would later be elected Governor of New York and U.S. Senator.
So, today is the 153rd anniversary of the RNC. We honor the patriots, the heroes, the visionaries who gave us our Grand Old Party.
From: Grand Old PartisanThis is not about protesting or marching on Washington, it is simply about saying a prayer each day starting this Wednesday and for the next 40 days after that.
The gift of life is so precious and there still so many willing to discard it and throw it away.
Thank you for contacting me about H.R. 1, the American Recovery and Reinvestment Act. I appreciate hearing from you.
The American Recovery and Reinvestment Act was passed by the United States House of Representatives on February 13, 2009, by a vote of 246-183, and passed by the Senate the same day by a vote of 60-38. It was signed into law by the President on February 17, 2009.
I supported the economic recovery package because with unemployment continuing to rise, including the highest levels Wisconsin has seen in twenty years, we need to act quickly and responsibly to create jobs and get our economy moving. Though not perfect, the economic recovery package does take important steps to create or save millions of jobs while addressing our country's energy and infrastructure challenges. It includes funding for highway and bridge construction, individual and business tax breaks, Medicaid, education and many other priorities
For more information on the economic recovery package you can visit www.recovery.gov. I will also have more information about how the recovery affects Wisconsin on my website, www.feingold.senate.gov/recovery.
Again, thank you for contacting me. Please feel free to do so on this or any other issue.
| Tax Increase | FY 2010 | FY 2011 |
| Adopt Combined Reporting | $75,600,000 | $111,700,000 |
| Adopt Main Street Equity Act | 30,300,000 | 31,000,000 |
| Extend Sales Tax to Digital Personal Property | 4,200,000 | 6,700,000 |
| Cigarette Tax Increase | 127,400,000 | 130,300,000 |
| Tobacco Products Tax Increase | 15,200,000 | 18,000,000 |
| Very High Earner Income Tax Bracket | 175,563,000 | 136,194,000 |
| Reduce Capital Gains Exclusion to 40% | 85,100,000 | 95,500,000 |
| Nonresident Pass-Through Withholding | 38,500,000 | 0 |
| Decouple from Federal Qualified Production Activities Deduction | 38,200,000 | 33,500,000 |
| Affiliated Entities Sales Tax Treatment | 19,800,000 | 21,000,000 |
| Fully Recognize Throwback Sales | 57,700,000 | 37,500,000 |
| Air Carrier Definition | 4,000,000 | 4,000,000 |
| Economic Nexus Standard for Internet Businesses | 1,500,000 | 1,500,000 |
| Internal Revenue Code Updates | -40,560,000 | -5,490,000 |
| Angel and Early Stage Seed Investment Credits Revisions | 0 | -7,000,000 |
| Increased Research and Development Investment Credit | 0 | -5,000,000 |
| Sunset Film Production Services Tax Credit | 5,000,000 | 5,000,000 |
| Delay Credit for Medical Records Technology Investments | 4,500,000 | 10,000,000 |
| Next Generation Farmer Tax Credit (effective 2011) | 0 | 0 |
| Dairy Cooperative Tax Credit | -600,000 | -700,000 |
| Meat Processing Facility Tax Credit | -300,000 | -700,000 |
| GPR Total Tax Changes | $641,103,000 | $623,004,000 |
| Hospital Assessment | $310,021,000 | $339,695,800 |
| Oil Company Profits Tax | 100,324,900 | 171,490,300 |
| SEG Total Tax Changes | $410,345,900 | $511,186,100 |
| NET TOTAL ALL FUNDS | $1,051,448,900 | $1,134,190,100 |
| Total 2010-11 | $2,185,639,000 |
The tax increases include: $540 million paid from oil company profits; $318 million by creating a new 7.75% tax rate for the richest 1% of taxpayers; $290 million in higher taxes on cigarette smokers; $215 million in higher corporate income taxes; and more than $85 million paid on capital gains.
The bill would:
• Tax parent companies and their subsidies as one entity. The rewrite of the corporate income tax code would cost businesses $215.7 million over three years.
• Tax hospital revenue to bring in more than $900 million in federal dollars, some of which will be used to pay for state health programs.
• Cut state spending by $125 million.
• Change tax laws to require online retailers to charge sales taxes for tangible products as well as Internet downloads of songs, video games and e-books.
• Authorize $300 million of federal stimulus funding for shovel-ready transportation
projects.
• Provide $3.6 million for worker training programs.
• Increase regulations to protect homeowners and tenants during foreclosure proceedings.
Recently, Governors Schwarzenegger, Crist, Douglas and Rell joined 14 Democratic governors in signing a letter to Mr. Obama lauding his economic plan.
I am with you, Governor Palin...
Obama should veto this piece of garbage
Oh, sorry...forgot to link to the original H/T Conservatives for Palin