A Tale Of Two States
By Mitch Berg
In Minnesota, Gov. Mark Dayton and his DFL majority achieved a “Surplus” (read: government got more out of the economy then it had even planned to) by jacking up taxes to unprecedented levels.
In Wisconsin, Gov. Scott Walker is on track to achieve a surplus through pure economic growth.
Which do you suppose is more sustainable?
March 4th, 2015 at 9:46 am
Mr. Walker is projecting a 3.5% growth in corporate tax collections in the final year of the next biennium, when the current year-to-date collections are running nearly 9% behind last fiscal year is quite puzzling. The revenue shortfall in this budget could well be $3-billion, just the revenue shortfall. In spite of all this, I still contend a Walker/Brownback team will make America great again.
http://www.thewheelerreport.com/wheeler_docs/files/0224dor_01.pdf
March 4th, 2015 at 11:48 am
It’s frustrating discussing these issues with liberals. They do not understand how jobs are created, how tax revenue grows organically. How it takes years and years for the final effect to be seen.
Not sure if this is a good example, but lets give it a try. Henry Ford built a dam and auto plant in St Paul in….I think 1926. It provided jobs for 85 years. It was the largest (or close to it) property tax payer in the city. If Minnesota, in 1926, said that for enviromental reasons, we can’t have a dam on the river, and industry on the banks, little affect would have been noted in the late 1920s. But by providing an economic climate that allowed this project to go forward, the city and state benefited for the next 85 years. Plus the spin off jobs. A lot of high paying unionized railroad employees served that plant.
March 4th, 2015 at 1:01 pm
Emery, your source ignores the fact that the reason revenues are down in Wisconsin is because tax rates have been cut, and you’re ignoring the fact that the projections of growth are not by the governor’s office, but rather by the legislative actuarial office.
I’m sorry, but you’ve got to pay attention to “little” details like this.
March 4th, 2015 at 6:49 pm
Which Is why i’m such a huge fan of Governor John Kasich. Unlike Mr. Walker,
Kasich is a pragmatic conservative and builds broad coalitions for his reform proposals. He tries to do what works, not what will win him a standing ovation from conservative purists. Mr. Walker’s fiscal problems are going to make the Kansas budget crisis look easy.
March 5th, 2015 at 9:55 am
So you’re a fan of Kasich because…..you’re disconnected from reality in your comments here?
OK. You said it, I agree. Sorry, Emery, but the reality here is that Walker’s budget projections are reasonable, your sources need to pay attention.
March 5th, 2015 at 2:33 pm
Only time will tell my friend.