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State Deficit is up to $2 Billion so....

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State Deficit is up to $2 Billion so....

Postby david cohen » Sun Mar 03, 2013 3:31 pm

Let's change the mining laws, tighten abortion restrictions, cut some slack for tax cheats who admit to being tax cheats...all the while ignoring the deficit. After all, this IS the Rove way- deflect your biggest weakness by moving the target...and then there is this great explanation of the hole Walker and the GOP are really digging, and it's deeper than any northwoods mine:

http://www.thedailycall.org/?p=38883
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Re: State Deficit is up to $2 Billion so....

Postby snoqueen » Sun Mar 03, 2013 4:41 pm

Kathleen Vinehout is doing a fine job both informing the public of the details of Walker's and the Republicans' activities and positioning herself for another run for governor if she wants one.
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Re: State Deficit is up to $2 Billion so....

Postby bdog » Sun Mar 03, 2013 4:58 pm

Dennis Brault needs to hire an editor. Even if he's right he comes across as an idiot.
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Re: State Deficit is up to $2 Billion so....

Postby jonnygothispen » Thu Mar 07, 2013 5:18 pm

From Vinehout's letter...

The governor has borrowed more money. Long Term Debt for Governmental Activities as calculated by the Legislative Fiscal Bureau has grown from $9,938,655,000 in 2010 to $10,593,140,000 in 2011 and $11,046,487,000 as of June 30, 2012.

In addition the governor has not paid debt payments coming due in 2011 and 2012. These payments were refinanced not to capture a lower interest rate but to avoid making payments...
Vinehout's site: http://kathleenvinehout.org/contact-us/
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Re: State Deficit is up to $2 Billion so....

Postby green union terrace chair » Thu Mar 07, 2013 5:45 pm

Who buys these bonds? Banks? Are they available to consumers? What's the interest rate?
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Re: State Deficit is up to $2 Billion so....

Postby snoqueen » Thu Mar 07, 2013 5:59 pm

Read all about it right here:

http://www.doa.state.wi.us/capitalfinance/

Click through the lawyerese and dig around.

Individuals may own municipal bonds. Quite likely some of us here own them as part of a 401(K), mutual fund, or our own retirement portfolio. Many times municipal bonds have tax advantages that make them desirable investments (for instance, if you live where they were issued).

Often large quantities of municipal bonds are sold to banks or other financial institutions which then sell smaller amounts to individuals, so if you want to buy a State of WI bond you usually go that route.

Municipalities all have their own risk ratings and some are a better risk than others, obviously.

Maybe HawkHead will jump in here with more detail.
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Re: State Deficit is up to $2 Billion so....

Postby jonnygothispen » Thu Mar 07, 2013 8:20 pm

The GAAP debt from the LFB. Page 33: http://www.doa.state.wi.us/debf/pdf_files/bib1315.pdf

2012/13 ~ $2.056 million

2013/14 ~ $2.359 million

2014/15 ~ $2.645 million
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Re: State Deficit is up to $2 Billion so....

Postby jonnygothispen » Thu Mar 07, 2013 10:16 pm

So combining the $454 million Long Term GAAP debt increase from June 30, 2011 to June 30, 2012 with the $589 million GAAP debt increase from June 30, 2012 thru June 30, 2015 we have a $1.04 billion increase in GAAP debt under Walker.

That doesn't include any of the effects on the debt from Walker's January thru June 2011 policies. I remember a stream of corporate tax breaks/cuts from that time, but I don't know when they went into effect.

Meanwhile, we have to listen to the crap from our very own MSM about a "balanced budget" and phony "surplus."
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Re: State Deficit is up to $2 Billion so....

Postby HawkHead » Fri Mar 08, 2013 12:00 am

snoqueen wrote:Read all about it right here:

http://www.doa.state.wi.us/capitalfinance/

Click through the lawyerese and dig around.

Individuals may own municipal bonds. Quite likely some of us here own them as part of a 401(K), mutual fund, or our own retirement portfolio. Many times municipal bonds have tax advantages that make them desirable investments (for instance, if you live where they were issued).

Often large quantities of municipal bonds are sold to banks or other financial institutions which then sell smaller amounts to individuals, so if you want to buy a State of WI bond you usually go that route.

Municipalities all have their own risk ratings and some are a better risk than others, obviously.

Maybe HawkHead will jump in here with more detail.


Muni Bonds are usually in high demand. They are exempt from federal taxation. If you are a WI resident and buy certain WI muni bonds they are double tax exempt; no federal tax and no state tax.

Here are the examples.

Investment in $1,000 CD at 10%:
I make $100 in interest income which I pay roughly $32 in federal and state tax. Rate of return after tax is $68 or 6.8%

Investment in $1,000 Muni Bond at 10%:
I make $100 in interest income which I pay roughly $7 in state income tax. Rate of return after tax is $93 or 9.3%

Investment in $1,000 WI Muni Double Exempt Bond at 10%:
I make $100 in interest and pay no income tax at all. Rate of return is $100 or 10%.

If you are in the top tax bracket the savings can be up to 42% on a muni bond.
I can then "afford" to invest in muni bonds that pay at a lower rate and still have more money in my pocket after taxes.
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Re: State Deficit is up to $2 Billion so....

Postby SidSeven » Fri Mar 29, 2013 12:57 am

david cohen wrote:Let's change the mining laws, tighten abortion restrictions, cut some slack for tax cheats who admit to being tax cheats...all the while ignoring the deficit. After all, this IS the Rove way- deflect your biggest weakness by moving the target...and then there is this great explanation of the hole Walker and the GOP are really digging, and it's deeper than any northwoods mine:

http://www.thedailycall.org/?p=38883


Walker moves figures around on the giant spreadsheet that IS the State Budget. His ideology matches up with the numbers & he's happy. The man is a tool & a punk.

ANYONE can do what he does.

Spinning it by total control of the over-riding message has always been the hallmark of a successful politician.

or maybe I'm wrong.
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Re: State Deficit is up to $2 Billion so....

Postby Henry Vilas » Sat Mar 30, 2013 9:48 am

Then and now — Scott Walker's U-turn on budget deficits

What a difference two years make. In 2011, critics were accusing Gov. Scott Walker of using "shock doctrine" tactics to exploit the budget crisis in order to enact ideological reforms — i.e. busting unions and slashing school and municipal aid.

This year, to hear Walker tell it, despite dismal job numbers that put Wisconsin near the bottom in job creation, it’s all rainbows and daffodils. Unless you read the report warning that his latest budget proposal risks creating a potential $664 million shortfall.

Apparently Walker, the same man who repeatedly criticized the deficit left him by the Doyle administration, is unconcerned.

"Given the budget surplus in the current (two-year budget), Governor Walker wanted to prioritize an income-tax cut that returns money back to Wisconsin's hardworking taxpayers," Walker spokesman Cullen Werwie told the Milwaukee Journal Sentinel.

Thus, despite the risk of creating a deficit again, Walker wants to return an average of $83 to each taxpayer next year.


What a fucking hypocrite.
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Re: State Deficit is up to $2 Billion so....

Postby Detritus » Sat Mar 30, 2013 10:45 am

Henry Vilas wrote:
"Given the budget surplus in the current (two-year budget), Governor Walker wanted to prioritize an income-tax cut that returns money back to Wisconsin's hardworking taxpayers," Walker spokesman Cullen Werwie told the Milwaukee Journal Sentinel.

Thus, despite the risk of creating a deficit again, Walker wants to return an average of $83 to each taxpayer next year.

Well, that worked out so well the last time it was tried.
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Re: State Deficit is up to $2 Billion so....

Postby Henry Vilas » Sat Mar 30, 2013 11:06 am

Also Tommy T. sent checks out to all Wisconsin taxpayers when he had a surplus. Prior to that, the state surplus had been kept in a "raining day" fund. Soon after the rebate checks arrived, the state had a fiscal downturn and there was no surplus fund to draw on.

On the national level, Bush (the younger) did the same thing, with the same negative results.
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