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Tax on Wealthy Proposed to Restore Technical School Funding

Two Democratic legislators want a 1 percent income tax increase on the state's wealthiest tax filers to pay for job training.

 

Rep. Cory Mason, D-Racine, and State Sen. Chris Larson, D-Milwaukee, are proposing a tax increase on Wisconsin residents earning over $1 million a year to reinstate technical school funding eliminated from the biennial state budget.

The proposed tax rate would increase from 7.75 percent to 8.75 percent and could generate $70 million in its first year if enacted. According to the Legislative Fiscal Bureau, there are about 2,900 tax filers who would fit this profile.

“Middle class families and workers have been asked to make tremendous sacrifices in recent months,” said Mason in a written statement. “This bill asks Wisconsin’s wealthiest individuals to share a small amount of that sacrifice in order to train and educate at least 35,000 Wisconsin workers.”

Named the Wisconsin Jobs Initiative, Mason's and Larson's proposal would restore some $34 million for the Wisconsin Technical College System cut from the 2011-2013 state budget. The Initiative would also allocate almost $35 million for training and education, help dislocated workers and give technical schools the ability to welcome more students.

"Governor Walker's cuts to education forced Wisconsin's technical colleges to scale back important job training. As a result, companies like Caterpillar have family-supporting jobs available but lack the right skilled workers to fill them," said Larson in the same release. "This legislation will help in the short-term by providing Wisconsinites with vital job training to get our neighbors back to work and provide our local businesses long-term with the qualified, skilled applicants they need for years to come."

A report in the Milwaukee Journal Sentinel underlines the need, saying there are more job openings than there are skilled workers to fill them. Further, surveys of area companies by the Racine County Economic Development Corporation say the same thing: companies need people with the right education and experience.

"This bill gives employers what they say they need most right now: skilled workers. This initiative allows us to stand by the workers and companies who built the Wisconsin economy and help them grow in the future,” Mason concluded.

Together, Mason and Larson are asking their Assembly and Senate colleagues for co-sponsorship and expect to formally introduce the bill sometime next week.

Related Topics: Chris Larson, Cory Mason, Gateway Technical College, Racine County Economic Development Corporation, and Wisconsin Technical College System

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Heather Asiyanbi

11:46 am on Wednesday, October 5, 2011

What do you think of this idea? If you don't like it, what do you propose? If you do like it, tell us why.

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Heather in Caledonia

12:06 pm on Wednesday, October 5, 2011

Why aren't those companies putting up some money to help train the workers they need? Harley, SCJ and others gave money to UWP to train the computer workers they needed. Worked great. Maybe Cat needs to partner with tech schools to get the worker they need. Maybe the tech schools need to stop funding programs that don't have any jobs out there. Just some ideas.

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melissa Warner

12:23 pm on Wednesday, October 5, 2011

Interesting. Companies decry the lack of skilled workers. And they seem to expect the government (the one they don't want to support with taxes) should provide the training. I think they should provide their own training programs...perhaps in partnership with GTC or MATC.

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Heather Asiyanbi

12:26 pm on Wednesday, October 5, 2011

@Heather & @melissa - you both make really good points. Companies need workers but get out of paying state income taxes through various means which brings down state revenue resulting in cuts to the very schools needed to provide a trained workforce. Funny how that all works out.

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Heather Rayne Geyer

1:03 pm on Wednesday, October 5, 2011

But the GOP will not make the corps pay the taxes they should, so the legislators are forced to get things done through other avenues. Certainly better than doing nothing at all. How many choices are really left? And I have to wonder if those funds wouldn't have been cut even without a deficit...even without their tax contributions.

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Toby Mueller

1:04 pm on Wednesday, October 5, 2011

How about this: raise taxes on everyone since we all benefit from businesses succeeding. That way everyone has skin in the game. I doubt that liberals would go for that though. I am against ANY new taxes for anyone. What liberals forget is that when taxes are imposed on a business, the consumer pays for it with increased cost for that item. The training that these potential workers need can be found in the education system. Math, science, industrial arts (for lack of a better term) on the high school level are the areas that students, parents and teachers need to focus on.

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Heather Asiyanbi

1:13 pm on Wednesday, October 5, 2011

But @Toby ... where is the money for that focus? Those programs take teachers who are trained and the budgets just aren't there ... I agree there needs to be a different funding mechanism, but the imposition of incomes taxes on the corporations aren't really an imposition at all since companies, like people, should pay their fair share. That way, everyone has skin in the game, right?

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Bren

5:49 pm on Thursday, October 27, 2011

Toby, we already have "skin" in the game. Remember what Warren Buffett said, his secretary has a higher tax rate than he does. Elizabeth Warren (senate candidate from Massachusetts) also reminds that the rich in this country became so using resources that we all paid for (roads, rails, etc.).

And the incomplete education program you suggest is not going to produce the creative, problem-solving abilities needed in today's market. Music programming is needed because it is the neural and intellectual glue that brings all of these skills together. Wisconsin was already falling behind Illinois and Minnesota before the February 2011 Koch brothers attacks on unions and education started. What's going to happen to the next generation if we don't give them the same level of care and attention we ourselves received?

Chris Larsen

1:33 pm on Wednesday, October 5, 2011

Much of the cut 34 million will be recouped by large tech school levy increases on the tax bills, rumored to be in the 8-10% range. These new tax the rich funds would be in addition to the tax increases that the tech schools already have planned. I'm not saying I am for or against, just pointing out that the "cut" funds are already being restored by the taxpayers.

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Heather Asiyanbi

2:13 pm on Wednesday, October 5, 2011

That is a HUGE increase if that comes to pass. Wow. Are the tech school districts not affected by levy limits? I need to find out ...

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Chris Larsen

2:26 pm on Wednesday, October 5, 2011

RUSD and Gateway have no imposed levy limits. Those two units will be most of the increases in tax bills this year.

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Heather in Caledonia

4:00 pm on Wednesday, October 5, 2011

Chris, I was thinking the same thing. RUSD already said they're going to raise taxes to cover what was cut. I haven't heard about Gateway in particular... anyone?

James R Hoffa

2:20 pm on Wednesday, October 5, 2011

How many of the 2,900 people that will be affected by this tax increase are already paying their fair share in that they are unable to qualify for some of the special interest loopholes that some of the others may be qualifying for? In other words, how fair would this so-called fair-share tax increase actually be in reality? Without knowing and divulging the specifics, all Mason and Larson are doing here is playing class warfare - plain and simple.

Besides, a mere tax increase alone is just a temporary band-aide measure. If they are serious about 'fairness,' as they allegedly claim to be, then PUT UP OR SHUT UP ALREADY!!! Fix the entire tax code and make it EQUALLY applicable to EVERYONE, without any kind of qualifiers, loop-holes, deductions, or special interest work arounds. Then uniformly adjust the rates for everyone as the elected government may require.

Everyone pays because everyone gets to play - it's that simple. But do it equally. After all, isn't one of the foundations of our nation the principle that the government should treat everyone EQUALLY???

I'm against any tax that expressly singles out people just because of their financial success, just as I'm against any qualifiers, deductions, or loopholes that allow select people to pay little or nothing at all.

Who would honestly be against this and why? So why don’t they just do it already???

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Heather Asiyanbi

2:36 pm on Wednesday, October 5, 2011

@JRH - you are preaching to the choir with this comment. Really. Flatter, simpler tax that does away with all the gook and closes loopholes because there wouldn't be any.

And these rules would apply to individuals and companies alike. Same rules, as a matter-of-fact. What a novel idea!

Heather Rayne Geyer

2:51 pm on Wednesday, October 5, 2011

@Heather @JRH - I basically agree too. The tax code needs a complete start over. While I am not so sure about a complete flat tax...there is no need or reason for complicated structures, loopholes and opportunity for scams. But while corps and lobbyists rule the roost...that will never change.

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Dickie Bolender

3:01 pm on Wednesday, October 5, 2011

Ugh. Yet another attempt to blatantly steal money from us wealthy people who have worked hard to achieve our success. I'm not a huge corporation that uses loopholes to avoid taxes. I pay more than anyone because I do things the right way. Almost half of my incomes goes towards taxes. Enough is enough. Raising taxes will just cause people like me to start finding the loopholes...

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Pete Selkowe

3:14 pm on Wednesday, October 5, 2011

Dickie: If, indeed, you earn the $1,000,000 per year this proposal targets, and if, indeed, you are taxed at the 50% rate you specify, then this proposal would take an additional $10,000 from you. Gee, I hope you can get by on $490,000 after taxes!

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Toby Mueller

3:28 pm on Wednesday, October 5, 2011

Pete: Who are you or anyone to say that someone cant' make as much money as they want or can? What you are eluding to is Socialism. The US was built on the opportunity to suceed. It is open to anyone. If you are not as motivated or skilled or talented as someone who can make alot of money, accept it and work for them. You will probably learn something from them.

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Tom

4:20 pm on Wednesday, October 5, 2011

@Pete: Not sure if you would appreciate it if @dickie ratrionalized your finances and then told you what you could get by on. IMHO

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James R Hoffa

12:39 am on Thursday, October 6, 2011

So, the government gets $510,000 from Dickie, half his income, and this is justified to you. How much do you give to the government Pete? What do you think is fair for you to have to give to the government? I guess since you’re OK with Dickie having to give 51%, then you probably wouldn’t be opposed to giving 51% yourself, right? After all, fair is fair, right?

So please Pete, tell us all how much you are taxed now, and how much extra you’re going to voluntarily give in your next fiscal tax year to hit the 51% mark that you believe is fair, because I know that as the honorable guy you are, you’ll probably want to set and lead by example, right?

Don’t worry Pete, I won’t be holding my breath for you to do this.

Unless government is treating us all equally, then the question becomes 'who gets to decide what fair is?' And that is a dangerous question to be playing with- after all, look where that kind of thinking has already got us - WE'RE LIVING IT NOW!!!

WAKE UP, PETE!!! EQUAL TAXATION FOR ALL is the only logical and truly American answer!!!

M.S.

11:16 pm on Wednesday, October 5, 2011

@Pete has a valid point though. The reason the wealthy pay such a large portion of all taxes is because they actually have money.

Tax breaks for corporations and wealthy shift the tax burden to to therapidly disappearing middle class. And they shop around for tax breaks and handouts of various forms, such as Walkers proposals to give breaks on energy costs to large businesses. All this does is shift their energy costs to the middle class. This, along with wage concessions, is robbing the middle class from its ability to drive a consumer driven economy.

Any\d you wonder why our gov't is broke and economy is struggling???

If you do indeed own a business and employ others to make a cool $1 million/year, then you need to pay your fair share. Who pays for the roads, rail, air, infrastructure that your company uses? Who provides the skilled work force that you profit from? Who provides the societal security of police, fire, emergency medical, education, international security, etc?

Those that do well in America should be proud to do right by America. We are not talking about tax increases of 70%, 50%, or even 30% of your $500K post tax income. So many wrap yourself in the flag conservatives celebrate those that make the ultimate sacrifice in places like Iraq (which we should celebrate). Yet, you are fretting over making a $10,000 sacrifice for the privilege of living in this great country? Priorities...

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James R Hoffa

12:43 am on Thursday, October 6, 2011

So, the government gets $510,000 from Dickie, half his income, and this is justified to you. How much do you give to the government M.S.? What do you think is fair for you to have to give to the government? I guess since you’re OK with Dickie having to give 51%, then you probably wouldn’t be opposed to giving 51% yourself, right? After all, fair is fair, right?

So please M.S., tell us all how much you are taxed now, and how much extra you’re going to voluntarily give in your next fiscal tax year to hit the 51% mark that you believe is fair, because I know that as the honorable person of your words that you are, you’ll probably want to set and lead by example, right?

Don’t worry M.S., I won’t be holding my breath for you to do this.

Unless government is treating us all EQUALLY, then the question becomes 'who gets to decide what fair is?' And that is a dangerous question to be playing with- after all, look where that kind of thinking has already got us - WE'RE LIVING IT NOW!!!

WAKE UP, M.S.!!! EQUAL TAXATION FOR ALL is the only logical and truly American answer!!!

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James R Hoffa

12:56 am on Thursday, October 6, 2011

"Who pays for the roads, rail, air, infrastructure that your company uses? Who provides the skilled work force that you profit from? Who provides the societal security of police, fire, emergency medical, education, international security, etc?"

Hmm... I seem to remember numbers coming from the non-partisan CBO that say that 49% of us don't pay any federal taxes at all, and for those of us that do, the top 1% are already paying a larger proportional share than anyone else. As most states have tax codes based on a structure similar to the Fed’s, the same can also pretty much be applied to state taxation as well.

So, you ask who pays for all the governmental services, but just like Elizabeth Warren, you act like businesses and business owners haven't paid a dime, and yet you fail to realize that throughout our nation's history, the wealthy have always disproportionally picked up a large part of the tab. Not to mention that the wealthy and businesses are also proportionally the largest contributors to charity.

They are not freeloaders, like you seem to imply. So, when's the last time you thanked a wealthy person for helping to make up for the 49% of Americans who are truly freeloaders and don't pay anything at all and yet are still able to take advantage of all of those great government services that you speak of?

Think about it before blindly believing in the propaganda and rhetoric!

Tom

11:38 pm on Wednesday, October 5, 2011

@M.S.: So, if one makes $1 million then a 50% tax is ok. What about someone that makes $500k, then 50% is also ok? What about someone that makes $250k, then 50% is ok? How about someone that makes $100k, 50% is ok? What is the basis that you use to determine how much wealth is too much for one to keep, before they pony up "their fair share"? Of course, our school system is properly managed with absolutely no waste in the process and they cannot find any savings anywhere?

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Heather Rayne Geyer

2:37 pm on Thursday, October 6, 2011

About every other day there is a report proving that training is EXACTLY what we need.

http://www.jsonline.com/news/opinion/the-jobs-paradox-131104548.html

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Sara Andrea-Neill

12:52 pm on Wednesday, October 12, 2011

Somehow this bills purpose got a bit distorted… there is a need to expand high demand programs in the tech colleges of WI. There are long waits to get into these programs, you cannot petition until you get prereq.s done and once you petition you may have to wait 2 extra years or more to even start just because of the backlog of other students waiting ahead of you. The schools got budgets cut so now expanding some of these high demand programs is not possible. There is a need to allow more people in many of these programs. I had to wait 3 years to get in my program because there were that many people ahead of me waiting to get in. I lost my job because policies like NAFTA put the company I worked for out of business. The workers qualified for TRA trade readjustment training because of this. Problem was you couldn't utilize it for most programs because the 2 year wait disqualified them from being an acceptable approved program to retrain in. TRA only allows programs you can complete in 2 yr max and must be full time student.

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Sara Andrea-Neill

12:53 pm on Wednesday, October 12, 2011

cont.... Many other programs don't even allow people to get on the wait list because there are 400+ waiting already. It's disheartening to know that you ca not get the training you need after losing your job because the schools cannot accommodate you due to the enormous numbers of other dislocated workers trying to do the same and their limited budgets. Expanding high demand programs was the main focus of this bill... the companies not having skilled workers was a small part of it but I think this point got driven harder than the need of the dislocated worker who has to wait to even get in a training program. The extra funding would be used to hire more teachers and expand high demand programs. these are programs that provide higher wage jobs than most. it's a shame the issue was distorted to be all about companies needing workers with the rt training and wanting the state to pay to train them... not the purpose

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GearHead

4:06 pm on Thursday, October 27, 2011

If Mason and Larson are so concerned about funding tech schools, why don't they focus on rooting out decades of waste, fraud and abuse out of those organizations, and keep their hands out of other peoples pockets? Oh, yeah, that's because the Republicans would be the ones concerned with real reform and change, thanks to Reps Kerkman, Vos and others.

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