What was Steve Prestegard thinking? Was he?

Political discourse based on reality offers enough fodder for argument. Some commentators, unhappy with reality, have to create myths.

Steve Prestegard did exactly that in a post Another Business Voice yesterday when he decided to enter the discussion about the role of the new Wisconsin Business Council (WBC) and the declining role of Wisconsin Manufacturers and Commerce (WMC).

Normally I do not respond to the inane, but Prestegard made a leap so great that it is worthy of note.

For this debate the term “pro-business” needs more qualification. Soglin’s apparently preferred definition of pro-business is when government collects a relatively high level (however you define “relatively high”) of taxes and then redistributes it to business through some sort of subsidy. That could be considered to be the general policy of the current administration in Madison, and for that matter in Washington.

That is the kind of approach of the failed efforts to get General Motors to build a new small car at GM’s now-closed Janesville plant. Some call such efforts “buying jobs,” but the multiplier effect — both in terms of spending and in terms of time — of good-paying jobs should outweigh the “cost” of the subsidy. (emphasis added)

Yes, I do believe in reasonable taxation, particularly when the expenditure leads to investment in infrastructure and human capacity - education and workforce development.

Yes, I believe that in times of dire economic conditions, when the nation is on the verge of a depression, that public stimulus money can be loaned to essential failing businesses, no matter how distasteful I find the old management - and that money is to be paid back.

I do not believe in chasing smokestacks. It is inefficient and perpetuates a race to the bottom.

Communities and states are better off growing and cultivating their own local businesses through technical assistance and planning than the tax handouts and special tax breaks, which WMC demands for its members.

I oppose tax break packages as were assembled for General Motors. Always have been, always will be.

(TIF programs which are to capture new taxes are acceptable.)

But any other tax cutting packages such as Prestegard describes are unacceptable. My position on this was established forty years ago and never changed.

Which raises the question: why does Prestegard have to attribute a position to me that is contrary to everything I have said and done?

Perhaps it is the same reason he gets careless and lazy raising the old tax mantra, without taking the time to remind his readers that to properly gauge spending, one must tax into account taxes and fees:

  The Wisconsin Taxpayers Alliance predicts we’ll be back in the top 10 in state and local taxes after the $1.9 billion in tax increases we’re now experiencing.

Or maybe it is because he believes everything Charlie Sykes spouts.

Comments

[Steve Prestegard]

Soglin believes I have mischaracterized his position on tax breaks for business. As he says on his blog, “I do not believe in chasing smokestacks. It is inefficient and perpetuates a race to the bottom. Communities and states are better off growing and cultivating their own local businesses through technical assistance and planning than tax hand-outs and special tax breaks which WMC demands for its members.

“I oppose tax break packages as was assembled for General Motors. Always have been, always will be. (TIF programs which are to capture new taxes are acceptable.) But any other tax cutting package such as Prestegard describes are unacceptable. My position on this was established forty years ago and never changed.”

So basically if I read him correctly, Soglin does not believe in tax breaks for business, period, other than TIF districts, “which are to capture new taxes.” I hope this sets the record straight.

[Belleville]

And this is exactly why Madison fails to understand how to develop business iniatives. Lets not change anything is the what the UWM system has done, unless it protects the way things are. That is the problem. The way things are doesnt work, hasnt worked and will result in losing more businesses unless subsidized by UW research. Another severe limitation as we watch a great opportunity slipping through the fingers of Madison. Tomotherapy was an innovation turned business run by academics that is failing miserably. Need we say any more. So we import business people to over take an innovation. I think that says it all about what Madison can create and not create. There is no future in that.

[antpoppa]

Typical neo-liberalism thinking. To paraphrase: ‘The public sector is incapable of the hard work, efficiency, and of course ‘innovation’ needed to promote a business.’ So any public enterprise, toll roads, trains, garbage collection, prison management which is enabled by the public sector’s money and shows the potential for profit is placed under control of the oligarchy capitalists, and the money flows into their pockets. Have another glass of KoolAid and a slice of Haliburton Pie.

[Jack Lohman]

However taxes are applied to businesses, they are passed on to the public in one form or another. Whether in higher product prices or state fees or taxes on product sales, we all pay them. But in the process we make Wisconsin’s corporations uncompetitive with product from other countries.

Our state should have zero taxes on companies whose products or services are manufactured or provided by state workers. Companies who manufacture out of the state or country should be subject to the current or increased taxes.

--
Jack Lohman
http://MoneyedPoliticians.net
http://SinglePayer.info

[Ken Van Doren]

"Yes, I believe that in times of dire economic conditions, when the nation is on the verge of a depression, that public stimulus money can be loaned to essential failing businesses, no matter how distasteful I find the old management - and that money is to be paid back."

I admit that my attitudes and ideas have changed since I last voted for you Paul. The world does not work as we were mis-educated. Here you seem to believe in the Keynesian crap that has predominated academia since the 1930's, and has led to not one but two depressions. Dig the hole deeper in order to get out of it. Nonsense, I am afraid. And once spending more, what politician can turn his back on the promise of more public funding for his efforts to buy votes back in his own district, by piling up debt for our children and grandchildren? Answer- not many.

And do you REALLY think GM is going to pay us, the taxpayers back? Say, I have a bridge for you....

"Communities and states are better off growing and cultivating their own local businesses through technical assistance..."

And who is to decide the level and nature of this type of assistance? Politicians and bureaucrats with either no business experience, or with their own particular ax to grind? I prefer an unhampered, unhindered, unsubsidized approach.

..." than the tax handouts and special tax breaks, which WMC demands for its members."

On this we can agree. THE SAME treatment of all, not SPECIAL consideration for SOME!

To Jack: WOW!! We agree on this one! (The first sentence of your comment.) However, regarding the second, if a company is in competition with a government enterprise, I think they should be exempt from being taxed to subsidize their competition. Grossly unfair. (EG- private campgrounds, landlords who compete against subsidized housing, and more.)

[antpoppa]

Jack
Are you proposing to dismantle Article 1 Section 8 of The Constitution of the United States of America? Hell, don't pussy-foot around Jack go for all of it!!

[Jack Lohman]

Don't know about Article 1 Section 8 of The Constitution, but I suspect that there is a way....

[Jack Lohman]

And incidentally, if congress can give tax breaks to companies who send jobs to India, as they did, I suppose we can find a way to give tax breaks to companies that keep jobs in Wisconsin.