The Truth about Wisconsin

 Posted by at 17:37  Politics
Feb 242011
 

As difficult as it may be to believe, there are some out there who still think that the atrocities being perpetrated by Koch Brothers employee and current governor of Wisconsin Scott Walker have to do with balancing the budget of that state. Nothing could be further from the truth. Everything young Mr. Walker and his Republican friends and masters are doing in Wisconsin right now is being done with the goal of breaking up the unions, diminishing the influence of the Democratic party and working to ensure a permanent Republican majority. It is all politics. Nothing more, nothing less.

This article by David Cay Johnston may help you understand more fully…

Really Bad Reporting in Wisconsin: Who ‘Contributes’ to Public Workers’ Pensions?

When it comes to improving public understanding of tax policy, nothing has been more troubling than the deeply flawed coverage of the Wisconsin state employees’ fight over collective bargaining.

Economic nonsense is being reported as fact in most of the news reports on the Wisconsin dispute, the product of a breakdown of skepticism among journalists multiplied by their lack of understanding of basic economic principles.

Gov. Scott Walker says he wants state workers covered by collective bargaining agreements to “contribute more” to their pension and health insurance plans.

Accepting Gov. Walker’ s assertions as fact, and failing to check, created the impression that somehow the workers are getting something extra, a gift from taxpayers. They are not.

Out of every dollar that funds Wisconsin’ s pension and health insurance plans for state workers, 100 cents comes from the state workers.

How can that be? Because the “contributions” consist of money that employees chose to take as deferred wages – as pensions when they retire – rather than take immediately in cash. The same is true with the health care plan. If this were not so a serious crime would be taking place, the gift of public funds rather than payment for services.

Thus, state workers are not being asked to simply “contribute more” to Wisconsin’ s retirement system (or as the argument goes, “pay their fair share” of retirement costs as do employees in Wisconsin’ s private sector who still have pensions and health insurance). They are being asked to accept a cut in their salaries so that the state of Wisconsin can use the money to fill the hole left by tax cuts and reduced audits of corporations in Wisconsin.

Please click on the articles title to continue reading. You will learn a lot. Believe me.
 

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