Onward Together

Onward Together
Showing posts with label Tax Reform. Show all posts
Showing posts with label Tax Reform. Show all posts

Saturday, October 20, 2018

All Politics Are Local

All Politics Are Local
Change Starts Here

Election season is upon us once again.

Wisconsin Democrats are putting up more quality candidates than we have seen for many years. Women, veterans, business leaders and union workers are running strong campaigns across the state, including traditionally GOP voting districts like ours.

Dennis Degenhardt, the recently retired CEO of West Bend’s Glacier Hills Credit Union, has been knocking on doors and meeting voters across the 58th Assembly District all Summer. Building on his special election run for the same seat last winter when he won the City of West Bend over Rep. Rick Gundrum, Dennis is making his case directly to the voters on the issues that matter. 

Degenhardt’s campaign is focused on support for affordable universal healthcare, stronger support for public education, creation of family sustaining jobs, fiscal responsibility for state spending, protection of Wisconsin’s natural resources and ensuring fair elections. His website is found at https://www.degenhardtforassembly.com

Chris Ralf, a Navy veteran and businesswoman, is running strong against Rep. Rob Brooks in the 60th Assembly district. She was recently the beneficiary of a gift from Gov. Scott Walker when Walker called on Brooks should resign from the Assembly after making offensive racial and sexual comments about several GOP women assembly members while intoxicated. Brooks stepped down as Assistant Assembly Majority Leader, but refused to resign. 

Rahlf’s campaign is focused on sustainable economic growth, increased protection for the environment, stronger support for public education, fair elections and affordable universal healthcare. Her website is found at http://chrisrahlfforassembly.com

Emily Siegrist, an Army veteran and nurse, is running in the 24th Assembly District against Rep. Dan Knodl. She promotes universal healthcare, increased support for public education, renewing Wisconsin’s infrastructure, support for veterans and protection of the environment. Emily’s website is found at https://www.emilysiegristforwi.com

All of these candidates for Washington County assembly seats share something else in common. All of their Republican opponents have refused every opportunity to debate or share public events with them. The non-partisan Ozaukee County Chapter of the League of Women Voters proposed debates in each of the districts where the incumbents and challengers could describe their visions and take questions form their constituents. All the GOP incumbents refused this time-honored format, but suggested one forum for all of the candidates. When that demand was agreed to, they demanded more conditions such as choice of moderators and influence over the questions to be asked. The League wisely backed away.  Rep. Gundrum refused to debate Degenhardt during the special election campaign and has, so far, failed to respond to an invitation from groups at UWM-WC to a candidate forum on their campus next week. Brooks has already declined to attend. All the invited Democrats agreed to attend.

These GOP representatives seem to be acting in concert with other GOP Assembly members who have also refused to meet face to face with Democratic challengers in front of their constituents. One has to wonder what they are afraid might happen should they meet with voters in something other than a friendly forum with scripted questions followed by buzz word answers. 

Perhaps they might be asked to explain how they might respond to Gov. Walker’s about face on issues like education, healthcare and transportation. Once hallowed GOP ground, Walker has sullied the party line by recently adopting very democratic sounding ideas like full 2/3 state support for cost of public education, required coverage for pre-existing conditions and increased funding for Wisconsin’s crumbling roadways. Walker’s new promises ring hollow when we recognize that he does not have the support from his colleagues in the Legislature for any of these measures. He knows he can promise the moon in order to gain another term when he also knows that his cronies will never allow him to deliver. 

The pre-existing condition coverage promise is all the more hypocritical after Walker unleased Attorney General Brad Schimel to join other Republican governors in suing the federal government to overturn the Affordable Care Act which provides the very coverage he now claims to support.

Walker even tried to outdo State Superintendent of Schools Tony Evers by claiming the mantle of “Education Governor.” While it is true that Walker proposes to significantly increase “education” funding in the next budget, he forgets to mention that most of the increase would  go into the failed voucher/school choice pot, not the “public education” pot he and the Legislature have slashed to the marrow of the bone. GOP restrictions on local control and funding through referenda remain untouched.


Voters indeed have a choice next month. We can restore Wisconsin to its great traditions of strong. Locally controlled public education, a pristine protected environment, fair taxes spread equitably and elections free from gerrymandered chicanery or re-elect those afraid to meet their challengers to debate the issues of the day in front of their constituents and a governor who is willing to say and do anything to get re-elected. 

Wednesday, November 15, 2017

Blue Tides Rising

Voters Speaking Up.
Cooperation and Compromise are Key

With each GOP governing blunder that comes to light, we see Democrats stepping forward to run and win in special elections across the land. The political pendulum often rebounds in off year elections as voters see first hand that one-party rule does not work so well. Between now and next November, we will see a much more pronounced pushback primarily due to the continuously outrageous conduct of our president and his cohorts.

Congressional republicans were unable to pass any significant healthcare reforms because they refused to work with Democrats to earn enough votes to secure passage of even modest changes. Tax reform, now being used as a stealth weapon to repeal Obamacare, appears headed down that same road. Republicans in the Senate can only lose two votes on their tax reform proposal and the inclusion of Obamacare repeal will most certainly cost them the support of more than two of their moderate members. Rebellion from the right and left flanks will further stall any meaningful legislative activity before the mid-term elections next fall.

Elections across the country for state legislative seats and local municipal positions are already showing clear signs of voter discontent about GOP inabilities to get anything done on the important issues like infrastructure repair, clean elections, tax inequality and government giveaways to the wealthy who need them the least.

Here in Wisconsin we are beginning to see voter push back against the backroom secret deals like Foxconn that will punish middle class taxpayers for most of the rest of their working lives. Couple the bad Foxconn deal with the bumbling leaders in the Wisconsin Economic Development Corporation who cannot enforce any of their own lax rules and we will have an economic disaster that will take decades to fix. Wisconsin still lags far behind in job growth and business development even with massive corporate tax reductions and the lifting of regulatory burdens.

Wisconsin voters are also standing up for their local public schools. Over 70% of the public school referenda passed in the last cycle. These communities have had enough of GOP control from Madison telling them they cannot raise local taxes to support their schools. They are demanding return of local control to their elected school boards so they can provide the resources their educators need to prepare the next generation.

People are rejecting those who would impose outmoded religious beliefs upon their constituents through unconstitutional bathroom bills and gay discrimination laws by electing openly transgendered citizens who care more about fixing roads than which bathroom people use.  They are turning against those who would use their positions of power to sexually harass and assault those less powerful. Respect for women and protection of children are gaining political currency once more. Misogyny is on the way out.

As President Trump and his family continue to loot the treasury, his campaign staffers face federal indictments and industry insiders take control of the regulatory agencies that once kept them in check, voters are telling elected officials who support the Washington rulers that they made the wrong choice.

It is not about one’s political party; it is about the country and what America stands for around the world. With Trump supporting Putin and dictators in the Philippines and Saudi Arabia, American voters are demanding a return to measured diplomacy with our enemies and unwavering support for our friends. We cannot have a president who threatens nuclear war with North Korea in early morning tweets and cuddles up to Chinese leaders in hopes they will reign in North Korean nuclear ambitions. An America floundering about on the world stage with little apparent purpose does little to calm a jittery world already reeling from our withdrawal from climate change accords and trade pacts that stabilize international markets.

Average Americans who cannot reach out to their elected officials in any meaningful way to express their displeasure can only turn to the ballot box. In almost every one of those opportunities, we see rejection of the current status quo. Red seats are turning blue across the land. As the GOP digs in its heels and clings to it’s “my way or the highway, take no prisoners” approach to governing, the blue tide will continue to rise.

Look for leaders who will listen and ask, “what do you think?” These are the ones who can and will work across the ideas that appear to divide us to find solutions to the common problems we all face. These are the leaders and elected officials of our future, if we are to have one.


Waring R. Fincke is a retired attorney and serves as a guardian for the elderly and disabled.

Friday, November 3, 2017

When Tax Reform Hurts

GOP Tax Reform Helps the Wealthy
Not the Rest of US

The tax reform bill that squeaked through the House of Representatives this week drastically cuts taxes for the very wealthy and will add $1.5 Trillion to the federal debt over the next decade.  Those of us who work for a living did not fare so well.

People who use deductions and credits for housing state and local taxes, medical expenses and education costs will probably end up paying more in federal income taxes under the current plan.

Using old and unproven arguments, the GOP leadership cut the corporate tax rate on profits from 35% to 20%. Claims that this will lead to more jobs and higher wages do not hold water. What the corporate tax rate cut is much more likely to generate are increased dividends to stockholders and increased executive pay. Interestingly, about $70 billion a year, 35% of the benefits will flow directly to foreign investors who own shares in American companies, according to the Urban-Brookings Tax Policy Center.

Real estate partnerships, hedge funds and other business that pass profits through directly to owners untaxed will see significant benefits under the new bill. The GOP leadership wants those owners to pay just 25% on those profits instead of the ordinary income tax rates that go up to 39.6%. The Trump family is a prime example of the type of business owner invested in real estate that will see enormous tax cuts with this new benefit.

The secret backroom negotiations that led to the new code revisions hit middle-class families, especially those in high tax states, the hardest with the elimination of deductions for state and local income taxes, limiting the real estate property tax deduction to $10,000, capping the mortgage interest deduction at $500,000, elimination of deductions for medical expenses, college tuition and interest on student loans.

There are still more Trump family benefitting changes as well. The bill eliminates the alternative minimum tax now paid by wealthy people with lots of deductions. Trump’s leaked tax returns for 2005 show the vast majority of the taxes he paid in that year were based upon the alternative minimum tax. Of course, he has not revealed any of his other income tax returns so we can only speculate on the impact the new code provisions will have on his current business income stream based upon know investments. The other major benefit to Trump and his children is found in changes to the federal estate tax. That tax currently applies to inherited wealth over $5.5 million. The new bills exempt inherited wealth up to $11 million next year and phases out the tax completely by 2024. That single change will benefit just 0.2 percent of the people who die every year, but will cost the government $269 billion over a decade.

House Speaker Paul Ryan (R-WI) claims that a middle-class family of four earning $59,000 per year will see tax savings of $1,182 per year under the new plan. Tax experts at New Your University Law School sees the claim as illusory because the cut will evaporate over a decade as several tax credits in the plan expire and inflation indexing changes take place. It is estimated that Ryan’s hypothetical family will see a tax increase by 2024. If the bill simply cut income or payroll taxes for middle class workers and doubled the standard deduction for individuals and married couples, it would be easy for the GOP to make their case for middle class tax relief. They rejected that simple approach.

Another current middle class tax benefit will vanish. Now, parents can claim personal exemptions for themselves, their spouses and dependent children. The new bill eliminates these exemptions in favor of a $300 personal credit for each parent. Even that expires in five years. For larger families, this clearly increases their federal income taxes.

The elimination of the medical expense deduction hits those with chronic illnesses and lousy medical insurance incredibly hard. If you have or make lots of money and can pay out-of pocket medical costs, you win. If you cannot, more of your paycheck vanishes to pay the doctor.

New polling on public reaction to the new plan shows that it is in trouble. A survey by Global Strategy Group in key states show that sixty percent believe the plan favors the wealthy over the middle class. Twenty percent believed they would personally see a benefit. Those responding to the survey voted for Trump by a 13-point margin.

Republicans in key states with high state and local taxes are on the fence as are those aligned with the construction industry that views mortgage interest rate deductions and property tax credits as keys to home ownership. If more Americans see the bill as a gift to those who do not need it and little to no benefit to those that do, it should fail.


Waring R. Fincke is a retired attorney and serves as a guardian for the elderly and disabled.