silverscreenselect wrote:flockofseagulls104 wrote: 1. These tax changes are intended to assist businesses that want to hire more people and to encourage existing companies to locate in the state, thus intending to increase employment. People who are employed generally pay more state taxes than people who are unemployed. So the 'tax cuts' are intended to be offset by the tax revenue generated by the person who is actually employed. I don't know if it will accomplish what it is intended to do, nor do I know what it's unintended consequences are, but it is a much better thing to do than to raise taxes just for the sake of raising revenue.
Flock, merely because one of your icons says why something is "intended," doesn't mean you should disengage your brain and accept the statement at face value. I don't oppose the idea of targeted tax breaks that actually create jobs. However, when you actually look at what these two breaks do, you see there isn't a whole lot of job creation there. One is fairly benign: it's limited to only a small number of companies and it doesn't cost a lot of money, but it's not likely to produce a lot of new jobs either.
The other is more widespread. It gives a $100-300 tax break to every company in the state for each new job. People hire new employees because they think the employee will generate sufficient additional revenue to justify their cost. And they give themselves a fairly decent cushion for error. No one is going to pick up $20000 and up in salary and benefit liabilities on a new employee just because they are going to save at most $300 on their taxes. That law won't create one single new job in the state of Wisconsin. What it will do is give an extra tax break to every employer in the state who was already planning to hire new people. And this is happening at a cost of $67 million a year to the state at a time of a severe budget crunch during which state employees are being told about the sacrifices they have to make.
Here in Georgia, the Republican legislature tried a similar con job on the public and it has blown up in their faces. They introduced a bill cutting back the top income tax rate (which virtually everyone in the state pays) from 6% to 4.5%. To be revenue "neutral," they proposed scrapping much of the itemized tax deductions in favor of an allowance somewhat like a standard deduction. However, when economics professors at Georgia State crunched the numbers, they found by an odd coincidence that the change in the tax structure would result primarily in a tax increase for people making under $180,000 a year and a tax decrease for those making over $180,000. Surprise; surprise. Since the newspapers and TV stations have run with the story, the bill has been stalled as the legislature is ducking for cover.
I am not going to argue this any further other than to point out one more time that we have a diametrically opposed viewpoint of what taxes are.
What it will do is give an extra tax break to every employer in the state who was already planning to hire new people.
No, SSS, Jeemie, Bob, it doesn't 'give' a tax break to every employer. It let's them KEEP more of the money they have earned. No, it may not entice an employer to hire a new employee, but it will make it a bit easier for them to do so.
The whole point is that a small cabal of Unionists, Democrats and media types are making a mockery of the election process in Wisconsin, simpley because they did not like the outcome of the last election, and they do not have the political power to stop the actions of the duly elected representatives by using the rules. So they are changing the rules, making up stuff and demagouging in order to get their way.
Did the republicans flee the state when the dems were in power? The unions, dems and leftists trash the Koch brothers, and the media and the BJ blogs go right along, but where's the indignation against the outside union support of the anarchy, where's the outrage against George Soros? And this whole bunch of crap about these 'tax breaks'... It's all a smear. If it was dems that passed these tax laws, they would be praised. Give me a break.