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11/2/2009
Huebsch: Democrats’ new jobs effort is PR ploy
Courtroom lawyers are famous for not asking a question when they don’t know the answer. Madison politicians are becoming famous for not asking a question when they don’t want to know the answer. Democrats, who rarely ask Wisconsin businesses for input on economic issues, took it to a new level this year. When large employers and small business owners offered feedback about tax hike proposals and new regulatory schemes, it was met with the equivalent of “la, la, la, I can’t hear you” from Governor Doyle and Democrats who run the Legislature.
While Wisconsin’s unemployment rate was setting records, they enacted $3.1 billion of new state taxes and fees, a $1.5 billion property tax hike on top of that, a 6% increase in spending, and $3.5 billion more of borrowing. Democrats leveled unprecedented tax hikes on employers who are struggling through this historic economic downturn, just like everyone else. The Democrats say that if businesses have less money, then you will have more. In reality, the only one getting a raise out of this plan is state government.
Just this week, the Wisconsin Department of Revenue (DOR) announced that corporate tax collections are up 9.2% from last year. That’s not because business is booming in Wisconsin, but because employers are paying $744 million more in taxes. It doesn’t take an economist to figure out that higher taxes mean less money for employers to invest in new jobs and better benefits.
Of course, Governor Doyle and Democrat lawmakers believe government spending will cure our economic woes, not private investment or entrepreneurship. They have placed a premium on government jobs, proudly announcing two weeks ago that they used federal stimulus dollars to save over 6,000 of them. Wisconsin has lost more than 130,000 jobs in the last year and families are paying the price for the Democrats' indifference. According to DOR, individual income tax collections are down 8.1% from last year and sales tax collections are down 8.7%, proof that too many Wisconsinites are continuing to struggle with unemployment and shrinking bank accounts.
Showing little concern, Assembly Democrats convened three times in the last two weeks to pass a handful of uninspiring bills. We proclaimed October "Adopt a Shelter Pet Month" (AJR 91) and approved a law allowing drivers to pass on the right when a vehicle is turning left (AB 409).
And then, to everyone’s surprise, Assembly Democrats announced a plan to “begin a long-term conversation with the business community.” It was 11 months ago that Democrats took control of the state Assembly and delaying this “conversation” until now has had dire consequences for our state and our families. Democrats didn’t ask for input when government needed it most because they didn’t want to hear that tax hikes would worsen Wisconsin’s economy and that automatic minimum wage increases would mean more layoffs. If they really wanted answers from business leaders, they would have asked the questions while concentrating on the challenges of the past year.
November, 2008: Democrats take control of Wisconsin State Legislature. The Doyle Administration says the state’s deficit from the 2009-2011 budget period has reached $5.4 billion
January, 2009: The legislature learns that income tax collections are down 1.9%, sales and use tax collections are down 5.7%, and corporate tax collections are down 22.4%. Wisconsin faces an additional $593 million shortfall over the next 5 months.
February, 2009: Democrats take just 48 hours to introduce a $1.2 billion tax hike and sign it into law, precluding any meaningful input by the businesses that bear the burden of those actions.
March, 2009: Determined to give workers and employers a voice in this high-stakes budget debate, Republican leaders establish Jobs NOW Task Force. Wisconsin’s unemployment reaches 8.8% - the highest level in 25 years.
May, 2009: The Legislative Fiscal Bureau reports that corporate tax collections will fall $282 million - a 28 percent decline from 2008 - even though Wisconsin companies have already started paying the new so-called Combined Reporting tax that Governor Doyle signed into law in February.
June, 2009: Jobs NOW Task Force Issues final report. Democrats approve a state budget that results in $3.1 billion of new state taxes and fees, a $1.5 billion property tax hike on top of that, a 6% increase in spending, and $3.5 billion more of borrowing.
October, 2009: The Doyle Administration announces that federal stimulus dollars saved 6,100 government jobs and another unidentified 2,184 jobs. Assembly Democrats announce a Partnership for a Stronger Economy.
They didn’t ask for input at any point and, when they received it anyway, it was met with telltale silence. Over 4 months ago, the Jobs NOW Task Force presented the Legislature with a comprehensive list of recommendations for improving the economy. More than 170 business and community leaders with varied experiences and backgrounds participated in the task force roundtables across the state. Assembly Democrats did not consult the report before passing a debacle of a state budget and they have yet to acknowledge the value of the task force’s efforts.
In September, the U.S. Department of Labor reported that Wisconsin, the District of Columbia and two other states had the largest percentage of jobs losses in the country. In that same month, Assembly Republicans used the Job NOW Task Force report to build a jobs agenda that was ignored by Democrats. Assembly Democrats hung their hats on a so-called jobs agenda that featured one bill regulating wind farms. At a complete loss for how to create jobs, Assembly Democrats should be welcoming the Jobs NOW Task Force recommendations. But, they aren’t really looking for input – not even from their newly announced “partnership.” They haven’t set a deadline for wrapping up deliberations or presenting recommendations to the legislature.
Democrats say the committee will “hold regular meeting through the state in order to get a complete picture of Wisconsin’s diverse economy, involve as many local voices as possible, collect the best ideas available.” The Jobs NOW Task Force did this months ago and if Democrats are sincere about partnering with the business community to get our economy back on track, they don’t need to reinvent the wheel. The work has already been done it’s been on the Speaker’s desk for nearly five months.
Mike Huebsch is a Republican and represents the residents of the 94th Assembly District.
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| 2009 |
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