Saturday, May 23, 2015

Strong Green Bay op-ed on Walker's 'hollowing out WI'

This one by UW-GB business professor Meir Russ is a keeper:
The hollowing-out of Wisconsin

...as predicted, the [Walker] policies accelerated the slide to a low-cost, low-wage economy while hurting the higher income portion of the population (the top 25 percentile) the most (relatively).
This would suggest that high-paying jobs are leaving Wisconsin either through attrition (retirement or downsizing) or migration, and are replaced by low-paying jobs. Add to that the fact that Wisconsin ranks highest in the nation on losing the middle class and 38th in new jobs creation; the picture is not pretty.
Now let's turn to education. Wisconsin ranks second in high school graduation but only 20th in higher education, 31st with advanced degrees, and 33rd with doctoral degrees. Further, Wisconsin is ranked 37th in state appropriations for higher education, and 47th in percentage growth in higher education spending. All of these rankings are prior to the new cuts suggested by the governor... 
Maybe the results of the first four years will change some minds in regards to the governor's budget proposals for public and higher education. If not, we will see in the next four years how much lower Wisconsin will go.


7 comments:

Anonymous said...

Prior to Walker, the lower wages for at least public employees were offset by better benefits. That is no longer true. So there drop in the upper 25% is really greater that he is showing here as out of pocket health care costs for all public workers has increased by 3% or more.

Anonymous said...

Baby boomers are retiring to other states due to Wisconsin's High property tax. With them goes their life savings and spending power.

Wisconsin has failed to follow the lead of other states that have tax shifted their economy and moved to a higher sales tax, low property tax form of funding government.

As far as the authors comments on education, Based on the population of our state, it would seem we're statistically right where we should be with higher education rates. And BTW, a degree in higher education in the future will have less and less impact on income and opportunity as society continues to downplay the high skilled blue collar jobs. As a noted scholar recently said, "The wealthy among us will be those whom fix things for a living,"

Anonymous said...

You aren't digging deep enough 6:52 am. Why are property taxes so high in Wisconsin? Because corporations like Georgia Pacific, Menard's and ABC Supply to name just 3, pay no corporate income tax and in fact receive tax rebates. Some call this reverse Robin Hood. Rob the middle class to give to the rich.

That leaves public schools to survive on dwindling state income tax and local property tax. So property taxes go up in response to referendum to support local schools. Most people in WI support their public schools according to MLU polls going back 10 years.

As for following the the high sales tax model, revenue is dependent on spending and spending is dependent on salaries. As a low wage state, Wisconsin could never generate the revenue of say Washington state with their high tech industry.

And this makes no sense: And BTW, a degree in higher education in the future will have less and less impact on income and opportunity as society continues to downplay the high skilled blue collar jobs. As a noted scholar recently said, "The wealthy among us will be those whom fix things for a living," I think you mean "white collar" jobs. And who is this noted scholar who has no knowledge of high tech and biotech industries?

Anonymous said...

Sorry, I got the quote wrong. “There will be a time when the wealthy among us will be those that are willing to get dirt under their fingernails. AC repair, plumbers, electricians, etc.”
https://www.yahoo.com/makers/young-people-dont-know-how-to-fix-anything-106523138575.html

Corporate taxes don't reduce property taxes. Property taxes are the revenue structure to pay for state government required programs such as over price systems like public education. Maybe we would agree about corporate taxes if the state paid all the costs of state required public education.

Anonymous said...

"Corporate taxes don't reduce property taxes. Property taxes are the revenue structure to pay for state government required programs such as over price systems like public education. Maybe we would agree about corporate taxes if the state paid all the costs of state required public education."

This is simply incorrect. Schools in Wisconsin are funded partially from property taxes and partially from the general fund. If you don't know that you don't live in Wisconsin.

Jake formerly of the LP said...

And we're not even talking about property tax write-offs from WEDC or local governments to entice "job creators" that often don't even add jobs from these giveaways.

I don't disagree with the idea of allowing more sales tax and less property tax as a method of financing local government on Wisconsin. This is especially true for places like Milwaukee and Madison who attract lots of out-of-area spending, but don't get much back in state shared revenues despite being the source of those revenues.

Anonymous said...

I disagree Jake. You can't just charge sales tax to people from out of state without charging residents. Everyone pays and the poor disproportionately in relation to income. If you want tourists to pay, limited toll roads might be one way to go. Hotel taxes are another. But if you have those things, tourists might stay away.

This article talks about lower wages and the resulting stagnating tax revenue. Ways to insure adequate tax revenue include the payroll tax, a tax on stock transactions and a progressive income tax. There are others but you can see that I am proposing going back to taxing the rich more than the poor.

To increase the revenue from payroll tax the minimum wage must go up. Property taxes on homes must go down so young families can afford homes and then have a vested interest in a place. Property taxes on industry are almost zero. Industry uses the infrastructure and should pay for it.