Sunday, February 27, 2011

You heard it here first: Tax the rich and solve budget shortfall - JSOnline

Holy smokes... the local press is finally awake.




You heard it here first: Tax the rich and solve budget shortfall - JSOnline


The reality, of course, is that Walker's plan is not the only way to fill the $137 million gap; it is a policy choice which, to borrow from Warren Buffett, represents "class warfare . . . but it's the rich class that's making war, and we're winning." Rather than attacking the living standards of middle class teachers, prison guards and health care workers, Wisconsin policy-makers can easily close this budgetary gap - and reduce surging inequality in the state - by temporarily raising taxes on the superwealthy and corporations.

As economist Dean Baker points out, the tax increase "only needs to be temporary, since the state budget should be fine once the economy recovers." Business tax cuts in Wisconsin in recent years have reduced the share of state revenues provided by corporate taxes to almost half the level of 20 years ago. By one measure, from the pro-corporate Council on State Taxation, our business tax burden ranks 12th-lowest in the country.

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