Wintery Knight

…integrating Christian faith and knowledge in the public square

Wisconsin House passes Scott Walker’s tax cut bill, headed to governor’s desk

Wisconsin Gov. Scott Walker: All He Does Is Win

Wisconsin Governor Scott Walker: All He Does Is Win

The leftist Milwaukee Journal-Sentinel reluctantly reports on another victor for Governor Scott Walker.

Excerpt:

Gov. Scott Walker’s $541 million tax cut proposal ended its trek through the Legislature on Tuesday with a final vote in the Assembly, clearing the way for the governor to sign it by next week.

The Assembly voted, 61-35, in support of the bill, with three Democrats joining all Republicans in favor of the proposal. It now goes to the Republican governor for his approval.

“That’s exactly what taxpayers want — giving their money back to them rather than keep their dollars here in Madison,” Assembly Speaker Robin Vos (R-Rochester) said, urging lawmakers, “Let’s give it back.”

[...]With growing tax collections now expected to give the state a $1 billion budget surplus in June 2015, Walker’s tax proposal will cut property and income taxes for families and businesses, and zero out all income taxes for manufacturers in the state.

Though the state’s tax revenues are increasing, GOP lawmakers and Walker will use that growth as an occasion to trim overall state spending slightly for the next three years rather than increase it.

Rep. Jim Steineke (R-Kaukauna), a Realtor, said the state’s property taxes are a considerable barrier to people buying a home and staying in it into their old age.

“What we’re doing today does move us back in the right direction, lowering the property tax,” he said.

[...]Under Walker’s bill, the average income tax filer would receive a tax cut of $46 in April 2015 and the typical homeowner would save $131 over the existing law on this December’s bills, according to the Legislature’s nonpartisan budget office.

Also, the governor has separately had his administration alter income tax withholding rates so workers have less taken out of each paycheck — about $520 a year for a married couple making a total of $80,000 a year — starting in April.

The bill also would lower income taxes for factory and farm owners by $36.8 million over the current two-year budget and $91.3 million over the following two years.

GOP supporters of the manufacturing tax cut in the bill see it as fuel for one of the state’s main economic engines. Democratic opponents see it as a giveaway with a dubious payback to some of the richest people in the state, averaging about $800 for roughly 30,000 tax filers in 2015.

The Christian Post had a story about Scott Walker as well.

Excerpt:

A Wisconsin-based atheist organization has demanded that that Governor Scott Walker remove a posting on the social media website Twitter that is religious in nature.

The Freedom From Religion Foundation stated Tuesday that they took exception to Walker’s official account, including a tweet posted Sunday that simply read, “Philippians 4:13.”

As rendered by the New King James Version, Philippians 4:13 states, “I can do all things through Christ who strengthens me.”

On Sunday, Walker tweeted “Phillipians 4:13″ on the @GovWalker twitter handle. This is noted as being the “Official Twitter Account of the 45th Governor of the State of Wisconsin, Scott Walker.” Walker has another twitter handle, @ScottWalker.

The @GovWalker tweet of the verse citation received as of Tuesday evening 52 retweets and 76 favorites. It also received diverse responses from other Twitter accounts.

As of Wednesday, the tweet was still up. So I re-tweeted it and favorited it.

I think that in 2016 we should be looking at candidates who will take the fight to the Democrats. We don’t need another Mitt Romney. I want to see a candidate who sticks his neck out for what he believes in and comes out on top. Real accomplishments, this time. Not rhetoric. Why do we always have to care what our opponents think of us? Why not just beat them up and then be magnanimous in victory? If he runs for President on the platform of zeroing out manufacturing income tax, he will win. Every union worker will vote for him.

During the Christmas vacation, I read governor Walker’s new book, which was a Christmas present from my friend ECM. If you want to learn more about governor Walker, I recommend picking that up. I actually got the audio version, and it’s read by governor Walker himself.

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Wisconsin Governor Scott Walker cuts taxes again, expects $1 billion surplus in 2015

Wisconsin Governor Scott Walker

Wisconsin Governor Scott Walker (Republican)

Walker has actually cut taxes three times in less than a year.

I know what you’re thinking, (if you’re a Democrat). You’re thinking “how can a governor cut taxes three times and have a surplus?”.

When the government cuts taxes, people in the private sector who either create jobs or work at jobs get to keep more of their own money. They either spend or invest their money. Spending money is OK, but the magic really happens when people invest money. Even something as simple as putting money into a savings account can achieve magic, because banks lend that money to job creating businesses. What is the magic? The magic is that when people invest or save their money, the money makes its way to job-creating individuals and businesses, so that they can develop new products and services. For example, if Samsung keeps more of it’s own money, it can hire more and better employees to to develop the S5 smartphone – a new product that performs better than the previous S4 model, even though it will probably cost less than the previous S4 model.

What happens when consumers can get more functionality for less money? It means that they can do more in their own lives using the better products and services, but also means that they have more money to save or spend somewhere else. So what really drives the economy is not government handing out food stamps or government giving money to companies linked to their campaign fundraisers (e.g. – Solyndra). What really drives the economy is the private sector. That’s where new innovative products and services are made. When you thinking of government, you should think of the people with degrees in Marxist studies and women’s studies who take money away from Samsung, so they have less money to innovate with. Government takes money from Samsung and gives it to Brigham and Women’s hospital to study why lesbians are often overweight. (It’s purely a coincidence that this is where Obama’s Surgeon General nominee Vivek Murphy works, and purely a coincidence that he founded “Doctors for America” to market Obamacare to the voters).

When you keep the money in the private sector, you get new products and services that people actually want to buy. The more money that businesses keep, the more they higher workers, and the more the state collects in payroll and income taxes. The more that consumers spend to buy better products and services, the more the state collects in sales tax. The key to economic growth is to have businesses produce better products for less money. When consumers can do more and have more money left over, there is economic growth, which boosts tax revenues. Government rarely spends money as efficiently and effectively as job creators and workers can.

With that in mind, let’s see what happened when Governor Scott Walker cut taxes and let job creators and workers keep more of their own money.

The ultra-leftist Milwaukee Journal-Sentinel reluctantly reports.

Excerpt:

Senate Republicans Tuesday narrowly passed Gov. Scott Walker’s $541 million tax cut proposal in a vote that guaranteed the cuts will become law.

The tax decreases — the third round of cuts by Republicans in less than a year — passed 17-15 with GOP Sen. Dale Schultz of Richland Center joining all Democrats in voting against the proposal. The proposal now goes to the Assembly, which passed a different version of the tax cuts last month with two Democrats joining all Republicans in supporting it.

With growing tax collections now expected to give the state a $1billion budget surplus in June 2015, Walker’s bill will cut property and income taxes for families and businesses, and zero out all income taxes for manufacturers in the state.

GOP lawmakers and Walker will use the windfall for the state as an occasion to trim overall state spending slightly for the next three years rather than increase it.

[...]Also Tuesday, the Senate voted unanimously to pass a second bill to increase spending on worker training by $35.4 million through June 2015.

[...]Under Walker’s bill, the average income tax filer would receive a tax cut of $46 in April 2015 and the typical homeowner would save $131 over the existing law on this December’s bills, according to the Legislature’s nonpartisan budget office.

Also, the governor has separately had his administration alter income tax withholding rates so workers have less taken out of each paycheck — about $520 a year for a married couple making a total of $80,000 a year — starting in April.

“The more money that we give back to the taxpayers, the more money they can spend or save as they wish and the more our economy will grow,” said Sen. Alberta Darling (R-River Hills), co-chairwoman of the Legislature’s budget committee.

The bill would also lower income taxes for factory and farm owners by $36.8 million over the current two-year budget and $91.3 million over the following two years.

GOP supporters of this manufacturing tax cut in the bill see it as fuel for one of the state’s main economic engines.

Now the nice thing about Walker is that he is no Wall Street Republican. The man has been plowing money into worker re-training programs and manufacturing, which is exactly how you draw votes from working Democrats. Working Democrats tend to prefer working to collecting welfare, so Walker is out there competing for their votes by making sure that everyone who wants a job can get a job, and that those jobs pay well. Walker knows that if he can cut taxes on manufacturing, that it will cause manufacturers in his state to hire more people in order to develop cheaper and better products. That’s going to cause them to invest more in his state, and some manufacturers will even leave other Democrat-run states (e.g. – Illinois) to move to Wisconsin.

When Democrats were running Wisconsin, they created a huge $3.6 billion dollar deficit that Walker inherited. Everything has been turned around under Scott Walker, but neighboring states like Illinois continue to decline. What a resume this guy is going to have in 2016 when he runs for President. Walker bet the farm on his pro-growth policies in a blue state, and guess what? He is reaping the rewards. He knows what he is doing, and the left can’t stand him. All he does is win.

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Why do corporations ship jobs overseas? What causes outsourcing of jobs?

World Corporate Tax Rates

World Corporate Tax Rates

Here is a news story from Yahoo News that explains the problem and the cause of the problem. (H/T Dad)

Excerpt:

Large U.S. companies boosted their offshore earnings by 15 percent last year to a record $1.9 trillion, avoiding hefty tax bills by keeping the profits abroad, according to a new report.

The overseas earnings stockpile has climbed by 70 percent over the past five years, said research firm Audit Analytics. Data in its report covers the Russell 3000 index of the largest U.S. corporations.

U.S.-based multinationals do not have to pay U.S. corporate income tax on foreign earnings as long as the earnings do not enter the United States. Accounting rules also let the companies avoid recognizing a tax expense if management intends to keep the earnings indefinitely reinvested overseas.

“It would probably be nice to have this money in our country being used in our economy, but at the moment we see it growing elsewhere,” said Don Whalen, general counsel and director of research at Audit Analytics.

Conglomerate General Electric Co (GE.N), had the most indefinitely reinvested overseas earnings, at about $108 billion, while drugmaker Pfizer Inc (PFE.N) was next with $73 billion, according to Audit Analytics.

The simple answer is that Americans believe that corporations need to pay high taxes and operate under burdensome regulations. This eats into their profits, making it harder for them to grow and expand. The plain truth is that it is easier for corporations to expand and hire in countries with lower taxes and fewer regulations. Besides, who wants to be wiped out by a nuisance lawsuit just because someone spills coffee on themselves and then refuses to take responsibility? The smart play is to just opt out completely, and that’s what many corporations do – earning higher profits in more business-friendly countries.

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What causes outsourcing, offshoring and tax avoidance? Greedy Democrat tax policies

I have to link to this Fox News editorial, because they linked to my blog, and because it features a sensible libertarian Wayne Allyn Root, whom I blogged about before.

Excerpt:

The signs are everywhere that a tax rebellion has begun.

The latest U.S. Census showed us that the states with low taxes enjoyed the fastest population growth- states like Nevada, Texas, Florida, and Arizona.

Not surprisingly, the states losing the most population are all high tax states like California, New York, New Jersey, Connecticut, Maryland, and of course Obama’s Illinois.

These states that Americans are running from are all governed just like Obama wants to govern the entire country. Soon these same Americans running away from California, New York and Illinois will instead be running away from America.

Ask the co-founder of Facebook, who recently renounced his citizenship and left for Singapore (where the capital gains taxes are zero).

Ask big-time Democratic contributor Denise Rich, who recently renounced her citizenship to leave for Austria.

The trickle is turning into a torrent. Record numbers of wealthy Americans are giving up their citizenship- eight times more than before Obama became president.

Of course we already know that only one year after the UK imposed a “Millionaires Tax” two thirds of the millionaires in England disappeared off the tax rolls.

High taxes have worked well in England…they are about to endure an unheard of in history triple dip recession…the third recession in 5 years. Folks that’s called a Great Depression.

We already know that millionaires are escaping France at a record pace because of high tax rates imposed by the new Obama-clone Socialist President of France. Even leftist actors like Gerard Depardieu have been forced to abandon the country they love.

The famous actor isn’t alone. Requests by citizens to leave France are up by 500%.

But then came the coup de grace. Former French President Nicolas Sarkozy has just announced he is leaving France because of taxes.

High taxes are even chasing away the presidents of their own countries!

High taxes work great in France. Their Labor Minister announced just this week that France is “totally bankrupt.” His words.

I removed all the links from the excerpt except the link to me. But you can see all the links on the original Fox News version of the article.

I think that there is this attitude on the left that the hardest-working people are like sitting pigeons. That they can be financially raped over and over by rhetoricians who preen themselves in the public eye, while demonizing their victims. It doesn’t go on forever. Eventually people who produce scale back their efforts, or just move somewhere else. Why work for other people who hate you? Charity is one thing, but slavery is something else entirely. Companies also respond to incentives, and shift to greener pastures where the socialists are not in charge.

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Middle class tax rate set to rise to nearly 50% in January 2013

From the Heritage Foundation’s Foundry blog.

Excerpt:

A middle-class taxpayer’s income is subject to a 25 percent federal income tax. Then there is the federal Social Security and Medicare payroll tax of 13.3 percent in 2012—5.65 percent of that is removed from the employee’s paycheck, and the remaining 7.65 percent is paid by the employer. (In reality, the employee pays the entire 13.3 percent, because the employer’s portion of the tax does not affect the cost of labor: The employer would pay the employee 7.65 percent more if there were no employer’s portion of the payroll tax.)

So the 25 percent federal income tax plus 13.3 Social Security and Medicare payroll taxes equals 38.3 percent going to federal taxes in 2012.

And then there are state taxes. According to the Tax Foundation, the average state’s income tax rate for the middle-class taxpayer is 4.82 percent, which brings the total to 43.12 percent in federal and state taxes. And it’s going higher, thanks to the nearly $500 billion in tax increases for 2013 that some have called Taxmageddon. In January of next year, the federal income tax rate for middle-class taxpayers is scheduled to rise from 25 percent to 28 percent, and the payroll tax is scheduled to rise from 13.3 percent to 15.3 percent. This drives the marginal tax rate based on the aforementioned three taxes to 48.12 percent. Add in state and local property, corporate, excise, and other state and local taxes, and the percentage of each additional dollar that is taxed hovers around 50 percent.

When half of each additional dollar earned is taxed away, taxpayers experience a disincentive to start businesses or expand existing ones. This leads to fewer jobs being created.

It is outrageous that any dollar earned by a middle-class taxpayer would go as much to taxes as to supporting the taxpayer’s family. The government didn’t earn the taxpayer’s paycheck and shouldn’t be entitled to it.

People like me really do think about things like this – about getting up and going to work every day to earn half of what I am worth. Of giving up half my salary so that the Georgetown University student can have free contraception paid for by me. I am one of those people who pays about 45% of my income (federal, state and local) in taxes. If I had more of my own money, I could be following my own dreams – maybe to do a Ph.D and teach, or start a business, or become a minister. But those things can’t happen, because people keep voting for more and more benefits for themselves on my back – so that they don’t have to be burdened to make the decisions that it takes to take care of themselves and their families.

That’s what being a Democrat means – it means persisting in perpetual adolescence at the expense of people like me. It means taking away my dreams so that they can have my standard of living without having to work or play by the rules. Being a Democrat means piling up trillions of dollars of debt onto people who haven’t even been born – so that feminists can have free contraceptives. That’s what a Democrat is.

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