Topic: Wisconsin Union Deal

[Slash]

The Public state employees union finally had their collective bargaining rights refined/cut

Its about time. While nobody supports decreasing the standard of life for any Americans, to attain a balanced budget revaluations of public employee wages in warranted. A balanced state budget will insure no drastic cuts are made to 'necessary' state programs. Lets hope this trend moves around the nation! Lower wages all around = higher employment.

[SgtMic]

Aside from the copy and paste, what are your thoughts on this?

[Slash]

I actually didn't copy and past, just a quick condensation of a long ramble.

While I believe unions do have a place in the American workforce, their main stage battles have been fought and won. No longer do workers need to suffer in poor work environments with stagnant pay. Wages in the public sector are often higher than that of the private while productivity laggs behind.

Federal union employees do not retain the right to collectively bargain their wage rate, so why should the rules be different for state employees.

Today more than ever state (in the classical sense) spending should be scrutinized at a higher level as federal entitlement programs are consuming more than 60% of the budget. Restricting the expansive state employee pension benefits which do not exist in the private sector anymore seem like a reasonable action to me.

Personally, I think the budget concerns many states experience are due to tax code issues. Fluctuations in the business cycle throw budget projections out the door. State and federal governments should redefine the tax structure in a way which does not penalize a person for moving up within the income tax bracket structure. Level the income tax rate among all income brackets and eliminate all but 1 low rate sales tax and enjoy the growth.

[SgtMic]

Who the hell is that? Did someone hack into Slash's account? 

I agree with your statement above. It's time for most unions to disappear. Especially the ones living off gov't funds.
If a gov't only has $1.00, how can you ask it to spend $5.00?
At lease Wis. is looking at their budget responsibly and not borrowing to make up for any deficits.
Either you have the money or you don't.
Most states today don't have the money they are used to wasting.
There is still good revenue, they just need to eliminate half the big gov't and get by on their (our) shoestrings.
After all, they do work for us right?"

[Slash]

Yep! Too true... Wish they'd start acting like it.

The state's exposure to economic downturns is pretty serious.
The tax code being structured as a progressive income tax scheme (federally) leaves tax receipts particularly vulnerable during economic contractions. In states that depend on a similar progressive income tax for their primary base of funds suffer the worst budget crunches during these downturns.

Perhaps its time we organize the business environment incentives in a way which limit the negative effects of the inevitable economic contractions?

Slash's solution:
- 18% flat tax Everybody should pay on their income. 1 tax bracket. not 11 or however many there are now
(FYI the bottom 20% earners in America actually pay a negative income tax, IE Receive money back that they never paid in)
~ If I had too, I'd settle for 2 or even 3 tax brackets, as long as the marginal (top) rate on the highest income earners did not exceed 35%. [10%,18%, 25% or similar] This would still provide a better more stable tax structure for the country. Tax Revenues would increase over what they are now. and the laffer curve does work.

- Each state to set its own sales tax, OR a single national sales tax, but thats it. 5-10% max.

- 20-25% corporate tax, NO LOOPHOLES.

- Maintain the mortgage interest deduction, eliminate all corporate tax loopholes including those tax credits for green technology, alternative energy production (corn/ethanol production) but leave the system which allows losses incurred to be deducted from positive gains in another period.

And yeah, that doesn't take 3000 pages to describe.

[Slash]

I'll concede, if the goal of government is to minimize the negative effects of a downturn in the business cycle:

It does make sense in some years to run a national deficit. This would stimulate the economy (in theory) if done correctly to offset the temporary slow-down in the private sector.

The problem today is that in good economic times instead of saving and reinvesting "excess" tax receipts, they spend them on more entitlement programs and other pet projects. These dollars should be used to minimize external debt (borrowed money) which will hurt future generations.

The problem is political. Nobody wants to raise the tax burden, ever. It should be only done in minor adjustments during good economic times according to Obama's own Keynesian economic theory.

Once again, slash's solution: Change the tax code to as stated above. Revenues will remain somewhat constant and future budget projections easier and more accurate to determine. Health care is the stick in the spokes and needs to be addressed. Easiest answer: privatize. The government's job just got alot easier, and good prices will remain more constant without the debt issue looming higher interest rates and credit downgrades.

S&P Credit downgrade comming within 2 years? I hope not. Get ready for a potential USA liquidity crisis similar to what AIG experienced in 2008... Only there is no lender of last resort TO the lender of last resort...

Only a printing press and a more nations to lend us more money.

Hello higher interest rates, slower growth, and social uprising. Watch Obama and the dem's use these events to turn the public against the very policy ideas that would solve many of the countries problems. America will not be the same for long.

[SgtMic]

I like your way of thinking. Running for office anytime soon? 

[Slash]

haha just drunken rants for now.
Maybe once I've made millions and have a mid-life power crisis.

[SgtMic]

It definitely takes money just to get your foot in the door.