Paul Soglin: Waxing America

What The UAW Did Not Do to General Motors

I was raised on General Motors automobiles. Every car my Dad bought, except for a Dodge Dart he purchased from a relative, was a Chevy. My uncles and aunts bought GM.

I was committed to doing my part and bought American cars. GM cars.

My first new car purchase was a Buick Regal purchased in 1978. I loved that car. We made two trips to Boston, one to Washington D.C., two skiing trips out west to Colorado and Idaho, camping trips in Wisconsin, and countless trips to Chicago for family in all sorts of weather.

In 1982, little holes, pin holes appeared in the roof. I knew that the body problems could be a disaster so I traded it in for a new Buick Regal. The new car was nice but the engine cut out every time I made a right turn up a hill. Go figure.

In the next fifteen years, Sara and I purchased three more GM cars, including one for my mother-in-law, and not including the Buick for the mayor's office.

The last new car was the Chevy Blazer. In 1992 with three kids, three large dogs, and Sara constantly hauling furniture that she was painting, an SUV was a logical choice. The vehicle was a nightmare.

The United Auto Workers (UAW) did not put the holes in the roof of the Regal.

The UAW did not create the design defect that made the second Regal stall on the right turns.

The UAW did not design the Blazer which Consumer Reports rated as one of the worst SUVs on the road.

The UAW did not make the Japanese design of my Infiniti with 90,000 miles and rides like it was brand new.

The UAW did not make GM build Hummers while Toyota was building the Prius.

The UAW did not order German and Japanese engineers to build smart, zippy, fuel efficient cars for the youth market so they would grow up snickering at U.S. cars.

The UAW did not fog the minds of GM executives so they believed they were on the right track with the Cadillac Escalade.

WMC, the Wisconsin Budget, and the Absence of Truth: Part II

Despite the WMC allegations, the modifications to Wisconsin taxation of capital gains taxes is not an attack on small business. It does increase taxes and correct some inequities in Wisconsin tax collections but the analysis of the impact of the tax shows struggling small business owners have little to worry about.

When WMC attacks the state budget it wraps itself in the flag of small business owners, even though their real intention to look out for the interests of the wealthiest Wisconsinites and to cripple government by limiting its resources.

Here is the impact in the change in capital gains taxes:

• For the average couple, filing jointly in Wisconsin, the change means a $27 increase or 8/10ths of one percent. I doubt that is going to break any small business. It it does, WMC can lower its membership dues by $28.

• At the high end, for that top 5% of income earners in the state, it will mean an increase of 1.6% or $246 annually. My guess is that most small business owners, told that they could have the top 5% of income in Wisconsin, would gladly pay the $246. I know I would.

• And if you make it into the top 1% of incomes in Wisconsin, the difference is $926. Chump change for those who can afford to send in thousand of dollars to elect Michael Gableman to the Wisconsin Supreme Court.

Last month, May 15 we posted we posted WMC, the Wisconsin Budget, and the Absence of Truth: Part 1

It was in response to a Wisconsin Manufacturers and Commerce (WMC) commentary Insight: Wisconsin at the Crossroads. where claims were made that increases in the capital gains taxes would effect retirement accounts and:

Under the populist guise of “soaking rich people,” the Governor’s budget would increase state taxation of capital gains by 50 percent — hitting small businesses who use their gains to create jobs and grow their companies.

Since the publication of that post WMC recanted and admitted the claims pertaining to retirement accounts were incorrect but it keeps up its bogus defense of small business.

Rick Berg on Wisconsin's Fiscal Problems. And Other Stuff.

Friday I scanned the Wisopinion.com list of posts and came across a link to Rick Berg's Isthmus article, Wisconsin's woes are part of grand scheme of fiscal irresponsibility - From bad to worse to worser still.

OK, this ought to be interesting. I read, I read, and I read and I read some more. At word 500 of his 750 word count he finally moved from California to Washington D.C. to Wisconsin where Berg queried:

..someone by now would have asked the governor a simple question: "What did we learn in May that we didn't already know in February?"...

...Or "Why was no action taken to correct the fiscal trajectory of the state before we got in this deep?"

Good questions Rick. The answer to the first one was that the estimated revenue collections from the sales tax, and also the income tax, were far lower than originally projected. In fact, from state to state, and county to county where there is a dependence upon the sales and income tax, these revenue projections were off regardless of the party in power.

I will take issue with the original estimates - far too bullish for me - but the error is shared by Republicans and Democrats alike.

The second question is even more tantalizing. I love the word trajectory. Far more invigorating than worser.

We have been on this trajectory for close to twenty years. It was authored and created by Republicans when they controlled the governor's office and most of the legislature.

Unfortunately in heady times, more tax loopholes were created, tax refunds were issued, more tax loopholes were created, and spending increased.

Democrats, short in numbers and often intimidated by the Republican mantra of the time, played along.

As the man said, "A candid examination of right-wing policies and the Democrats who play along and the horrid liberal  right- wing policies designed to assuage the moderates WMC but end up irritating everyone. And other stuff."