Paul Soglin: Waxing America

Crumbling Dollar Lifts Wisconsin Blue Cheese

Another victim of the disastrous Bush economic polices and the war in Iraq is the absence of the finest European cheeses from swank east coast restaurants.  As the Village Voice reports, How Chefs Are Dealing With the Tanking Dollar: Getting creative with imported goods

Recently, I (reporter Sarah DiGregorio) realized that I could no longer afford my favorite stinky French cheese (not that I ever really could, technically)...

At Kellari Taverna...Greek feta, once crumbled over many dishes, is now only on the tomato salad..."It's killing us!" exclaims Gregory Zapantis, the Greek-born chef at Kellari Taverna. "A few years back, it was equal—one dollar to one euro. Now the euro is $1.60."

The concerned New York culinary reporter turned to an economist who specializes in wine economics to discover that, "... the government spends more than it has, putting us in hock to the Europeans, Japanese, and Chinese to pay for Bush's tax cuts and the war in Iraq."

But the inventive mid-town Manhattan chefs now turn to Bucky when times are tough, "Zapantis has fallen in love with the fish he gets from Long Island in the summertime. And he's happy to have discovered Wisconsin blue cheese as an unlikely alternative to feta."

Faculty Salaries Elevated In Public Debate

University of Wisconsin System faulty and administrative salaries are the lowest in the Big Ten but the problem is starting to gather more needed attention around the state.

On the day that UW-Madison Commission on Faculty Compensation and Economic Benefits issued its report Report: Faculty flight a 'crisis situation' at UW-Madison , the La Crosse Tribune published a thoughtful editorial based on a story from the previous week.

The La Crosse Tribune editors wrote, Public higher education needs more support from Legislature:

...there are some signs of legislative antipathy toward higher education, which also could be a real problem in the future...

... Faculty salaries also are below peer institutions, and the university system has faced larger than average state budget cuts since 2001, making it more difficult to make up any shortfall, and guaranteeing that tuition increases will have to make up some of the differences...

...Higher education does not just help students. Universities can contribute to economic development in states — and the number of adults with advanced degrees also affects the state economy.

Legislators need to be more supportive of it.

Yes they do. Both parties. Perhaps this can be the 'signature issue' for the November, 2008 state legislative races. And while we are at it, let's include the public schools.

As I wrote on April 18, 2008 The Value of Education the knowledgeable and thoughtful business leaders in this state are all saying the same thing, "I need a trained, intelligent, thoughtful, creative workforce," or words to that effect.

Faculty salaries may not be going up but at least the issue is rising in public forums and the newspapers.

University of Wisconsin System - Two Headed Huebsch

The University of Wisconsin System has six campuses  searching for new chancellors. Two of the chancellors are retiring and four are moving on to higher paying positions. UW System chancellor exodus could grow/

Wisconsin ranks last in faculty salaries when compared to other Big Ten schools and the entire system does badly when compared to to its cohort of institutions. Republican Party Winning Battle To Destroy University of Wisconsin System. Led by Republican Mike Huebsch, the Wisconsin Assembly underfunds the schools.

Its very simple. You cannot retain good people when you do not pay them.  You do not have to pay them extraordinary salaries, just something competitive that ranges towards the mean. The private sector knows that.

In Wisconsin we have one of the fiercest opponents of public education chairing the state committee that overlooks our schools. He uses every opportunity to attack the UW System.

Steve Nass is not the issue. The responsible party is the man who put him in power.

Last December the La Crosse Tribune published an editorial commending their local legislative delegation for supporting the UW- La Crosse campus. Local leaders, students leading way on UW-L’s plan for growth

On Thursday, our entire legislative delegation was represented at a Board of Regents committee meeting to show support...But perhaps most striking was the presence and vocal support of Speaker Mike Huebsch, R-West Salem.

To say that UW-L’s plans haven’t exactly been the darling of Huebsch’s caucus would be an understatement.

It is five months later, the UW system is hurting and hurting badly. It is unfortunate, but the more powerful, more effective Huebsch is the one backing Nass, not the one who showed up at the UW Regents' meeting.

The Value of Education - The Silly Right Wing Approach

Earlier this week I made reference to the value of education, Republican Party Winning Battle To Destroy University of Wisconsin System which brought a cynical response from one right-wing commentator:

Higher education systems do not grow state economies. When somebody gets a degree, he/she can easily leave the state. Furthermore, why should government subsidizie (sic) higher education for anyone?

Even if we forget about the value of the education to the individual, and the family, there is no question that society is repaid from the cost of public education at all levels.

• Eighty percent of all of our college graduates remain in Wisconsin, and, of course, many graduates from out-of-state come to Wisconsin.
• A high school graduate, in his or her life time, does not make enough money to repay the cost of their education, but that high school graduate is still more productive than the high school drop-out by not being a drain on society - in the tens if not hundreds of thousands of dollars during their life time.
• The student who finishes at least two years of higher education more than pays back society for the cost of their entire education. The four-year graduate of a school of higher education enjoys increased earnings of more than $20,000 a year over a period of forty years; just about the best investment society can make. Figure out the taxes on those additional earnings and it is evident that society benefits.

Of course, there are the additional benefits to the family and subsequent generations that show up in a higher standard of living, better health, and might I dare say, greater happiness?

Why the hell do we have to measure everything in dollars? There are values to learning, to an education that goes beyond any right-wing economic valuation that is riddled with fraudulent assumptions about a caring society.

Every knowledgeable and thoughtful business leader I talk with says the same thing, "The most important thing I need is not lower taxes, it is an intelligent, thinking workforce."

And out-of-state university students pay more than 110% of the cost of their educations in the extremely high tuition they pay. The state makes money on those students.

Tax Nonsense Coming Your Way

In the coming weeks, Wisconsinites will be inundated with misinformation, bad math, and assorted ideological drivel from snake-oil salesmen purporting to be experts on taxes. You can expect to hear from the groups ranging from the phony "non-partisan" Tax Foundation to our own Wisconsin Manufacturers & Commerce (WMC).

The theme will be simple and misinformed. The public will be told that sometime in early May they are finally working for themselves, that until then, their year's income went to government. Wisconsinites will be reminded that while residents of other states will heave earned enough to pay the tax bill by April 22nd or 23rd, Badger state residents will be working until at least the first of May for the governement.

We will be told that in Wisconsin we suffer the seventh or perhaps, the fifth highest tax burden in the United States.

And the facts are:

• All of these studies are flawed, badly flawed. When it comes to total government revenues Wisconsin ranks around 23rd or 25th, depending upon which study you use. Wisconsin collects very little of its revenues in fees and these studies do not include that less progressive revenue collection. Other states may have lower tax collections than Wisconsin but their heavy reliance on fees takes a bigger bite from the taxpayer.
• Theses studies never look at results  -the quality of the public service.
• These studies never examine the externalities of public service. The city of Madison operates Monona Terrace at a loss. But while the revenues do not show up in the Monona Terrace ledger, the facility brings in hundreds of thousands of dollars in sales taxes and tens of millions of dollars that stimulate the regional economy.
• These studies overlook obvious differentiations between governments. For example, a comparison of per capita spending between Milwaukee and Madison is meaningless unless the author factors in that public transit is in the Madison municipal budget, while in Milwaukee, the county operates the transit system.

Right Wing Attacks on Wisconsin Business - Climate Worsens

The rabid right is starting to make Wisconsin's left look moderate when it comes to establishing a hostile business environment; after all we never did have a monopoly on silliness.

The wheels recently came off the wagon in January when John Shiely of Briggs & Stratton attacked the left in Wisconsin, in general, and the left in Milwaukee, in particular, for being antagonistic towards everything business. No one needs to go through the misery of the public dialog, so to spare you:

• Shiely should have stopped, but went on a rant about Chinese limousines, the benefits of low paying jobs in Arkansas, and a general attack on the relatives of Milwaukee mayors and labor leaders.
• The left then, rightly piled on.

Since then, here is what we have:

• On January 30 Mark Belling careened out of control attacking the Milwaukee 7, one of the more progressive business forces in Wisconsin.
• Belling was soon accompanied by Charlie Sykes in taking on both the Small Business Times and the Business Journal.

Now that WMC has reversed its position on the hospital assessment, the right has gone berserk:

• Belling: Business group wimps out of anti-tax battle...The shocking sellout by WMC and MMAC on taxes is an indication of how the business community in Wisconsin is changing. The biggest growth industry in the state is health care. Aurora and all the other "nonprofits" are on a hospital building binge and are buying up many physician practices. This growth is making them a very large part of the private business community. Aurora, in fact, is the largest private employer in the state of Wisconsin!

• Boots & Sabers: WMC Supports Sick Tax: WMC is supporting a tax that will screw the majority of businesses and citizens in Wisconsin for the benefit of a couple of large hospitals.  It’s a pathetic display of shortsightedness.

• Charlie Sykes, in a convoluted mumble-jumble: WMC Backs Tax Hike Memo to WMC: "Government is not the solution to the problem. Government is the problem." But the business group's flip-flip on the tax increase is a reminder that "pro-business" does not always mean "pro-market" or "pro-taxpayers."

Which leads us to this point: I am on the same side with WMC and standing across the line from Belling, Sykes, and the Booted Boys.

Yikes.  Is it me or them?

WMC Reversal on Hospital "Tax" - Now They Must Apply Pressure

As reported in The Capital Times: WMC now backs hospital tax.

As Waxing America observed two weeks ago: Hospital 'Tax' Supported from Left to Right, Except WMC

...if two opponents changed their minds, resolution would be forthcoming. The first is the Republican leadership in the Wisconsin Assembly, the second is their puppetmasters, Wisconsin Manufacturers and Commerce (WMC).

OK, we got the order wrong.  But moving on...

If adopted by the Wisconsin legislature, the assessment will bring in over $420 million in additional federal Medicaid payments to Wisconsin.

Our original WMC Watch* program raised this issue with individual members of the WMC board for the last eight months; since January 1, 2008 I spoke to a half a dozen of the WMC board members about the need for them to learn more about the plan. I asked them to look beyond the limited information provided by the WMC staff, which recommended the organization oppose this excellent plan introduced by Governor Doyle almost a year ago.

The reversal of position, which must have been difficult for WMC, has implications that go far beyond this immediate issue:

• It demonstrates that WMC board members need more information on public policy issues than the limited details they get from their own staff.
• Second, it is evident that many WMC board members make sound decisions when given access to information.
• Third, our original WMC Watch* program was correct in its premise that ratcheting up the public discussion in the Wisconsin press, blogs, and among the WMC members will continue to advance the discussion of public policy.
• Fourth, the editorials in Wisconsin newspapers had an effect in isolating WMC and causing the reversal.
• Last, while the WMC endorsement is important for passage, there is still critical work needed to gain the support of the Republican controlled Wisconsin Assembly, where the conservative leaders remain steadfast in their opposition.

Now WMC must show this new enlightened position is not just for show. We all know that if they exert the same pressure they apply when getting their way on tax issues for their members, enough Republican Assembly members will support this measure for passage.

*There is a new WMC Watch operated by One Wisconsin Now (OWN) which is not to be confused with our program - thus the sporadic reference to the "original WMC Watch."

WMC Tells A Gableman Joke With a Straight Face

Here is the exact quote from the Wisconsin Manufacturers and Commerce (WMC) advertisement touting the crime fighting abilities of their candidate for Justice on the Wisconsin Supreme Court:

As a prosecutor, Judge Michael Gableman tackled arson, sexual assault,  domestic violence and white collar crime.

Here are the facts:

• Gableman prosecuted only one arson case. The defendant was acquitted. That is correct, Gableman failed to get a single arson conviction in his entire career as a prosecutor.
• Gablemean participated in 19 felony child abuse cases. There was one, count it on one finger, one case, that resulted in a prison sentence.

And WMC wants us to believe them on complicated public policy issues, taxation policy, and the education of children.

Here is the link to the companies that make up the WMC board of directors who approved the advertisement:

WMC Board of Directors

Going After Tax Evaders is a New Tax Increase: WMC

Last night I had a opportunity to hear Jack Norman, Research Director of the Institute for Wisconsin's Future speak about Wal-Mart and its use of loopholes to legally avoid paying taxes.

I started to wonder. Imagine that Wisconsin took steps to change the state law so that Wal-Mart would have to pay the taxes.

Would Wisconsin Manufacturers and Commerce (WMC) consider remedial legislation to fix the problem an amendment of the existing tax laws or would they consider that a new tax and/or a tax hike?

If anyone can get near to this august body that prides itself on patriotism and loving the state of Wisconsin, please put the question to them.

Here, from Broken Partnership: How Wisconsin’s Corporate Sector Underpays State and Local Taxes by $1 Billion is what Wal-Mart does to avoid the taxes.

Wal-Mart has a separate corporation that owns the real estate. Wal-Mart makes sure that the rent is high enough so that the stores never make a profit. Of course, the real estate holding trust that owns the land and building make a lot of money - like several hundred million dollars.

...The Wal-Mart operation that owned the stores collects rent is set up as what is known as a real-estate investment trust (REIT).

The REIT's profits, paid out in dividends to Wal-Mart are tax-free.

That is because the REIT is located in a state that does not tax the profits from rents. Very nifty. Figure out a way of showing no profit in Wisconsin and move the income in the form of a rent to another state.

Wal-Mart and WMC do not hate all lawyers. They must love the ones who figured out these tax loopholes.

Look into your pockets. Not a lot there?

That's OK. Wal-Mart and WMC wish to thank you for paying additional taxes since someone has to make up for their clever tricks.

Remember, if you support fixing this problem you are a supporter of big government who just wants to raise taxes.

Remember the WMC motto: Standing Up for Business! If it is good for WMC, it is good for you!

Wisconsin Manufacturers & Commerce Tries Socialism

When it was in the best interest of Wisconsin Manufacturers and Commerce (WMC) to shift costs from their members to the general public, the Madison based lobbying cabal was never shy. One of the best examples of WMC hubris is found in their 2007-2008 Legislative Agenda, WMC, Standing Up for Business.

Tucked away on page ten is an agenda item that WMC says reflects "...our strong environmental ethic..."

Encourage the cleanup and redevelopment of contaminated sites by strengthening and improving tax and other financial incentives and liability protections.

In other words let government do it and take the money from the taxpayers.  Instead of having the responsible private property owners clean up the contamination, have everyone pay.

A little socialism right here in Wisconsin.

WMC is shameless. Contaminated brownfields are the responsibility of the owner. Property owners do not expect the rest of us to pay for the cost of grading, laying utility lines on their property, or preparing the site for construction.

American capitalism and free enterprise expect you, the homeowner, to pay your own bills the next time the furnace goes out or the roof needs repair. But WMC, filled with hubris, wants the rest of us to pay and provide financial incentives if some business finds its soil contaminated.

You have to wonder, if after the cleanup is complete and the land is productive, will WMC support the public getting a return on investment and a share in the profits?  I am not speaking of the normal property taxes - that is already expected of all private property owners. I am speaking of the return any investor or shareholder expects. Dividends. Pay outs. Big bucks.

They have absolutely no shame.

And there is more.