- Ex-aide's book paints harsh portrait of Sarah Palin
Priorities? GOP Governors Shift Burden To Poor, Middle Class To Pay For Tax Breaks For Rich, Corporations
by Josh Dorner
Published on Tuesday, February 22, 2011 by ThinkProgress
State budgets across the country are in disarray as a weak economy, the end of tens of billions in Recovery Act funds, and a GOP-led House that is pushing for deep cuts to many programs that benefit state and local governments set the stage for massive in shortfalls over the next two years. Instead of making the tough choices necessary to help their states weather the current crisis with some semblance of the social safety net and basic government services intact, Republican governors are instead using it as an opportunity to advance several longtime GOP projects: union busting, draconian cuts to social programs, and massive corporate tax breaks. These misplaced priorities mean that the poor and middle class will shoulder the burden of fiscal austerity, even as the rich and corporations are asked to contribute even less. Here’s a detailed look at how the GOP’s war on the poor and middle class is playing out at the state level:
Arizona: Following months of national outcry and at least two deaths, Gov. Jan Brewer’s administration has finally relented on what many likened to real-life “death panels” that denied care to those in need of transplants in order to save the state just over a million dollars. Now, however, Governor Jan Brewer is proposing to kick some 280,000 Arizonans, mostly childless adults, off the state’s Medicaid rolls. Brewer claims such a move is the only way to get the state’s fiscal house in order, as it would save $541.5 million in general funding spending. Brewer also wants to save $79.8 million by dropping 5,200 “seriously mentally ill” people from the state’s Medicaid program. Instead of balancing out these draconian cuts with additional revenue increases or simply not making the cuts in the first place, Brewer instead signed $538 million in corporate tax cuts into law two weeks ago.
Florida: Last week, Gov. Rick Scott announced that he was canceling a proposed high-speed rail line between Orlando and Tampa — something that will cause Florida to forego $2 billion in federally-funded investments and cost the state at least 24,000 jobs.
Scott’s move is opposed even by the Republican chairman of the U.S. House’s Transportation and Infrastructure Committee, and Obama administration officials are seeking ways to bypass Scott to keep the project moving.
Scott’s radical budget proposal, unveiled at a tea party event, includes $4.6 billion in spending cuts that would result in the direct loss of more than 8,000 jobs. It would also privatize large areas of state services, including juvenile justice facilities, Medicaid, and some hospitals. Education spending would be cut by more than $3 billion and teachers and other public employees would see their pensions under threat. Such deep cuts in essential programs and services are necessary to offset Scott’s proposal to cut corporate and property taxes by at least $4 billion.
Michigan: While newly-elected Gov. Rick Snyder has said he won’t “pick fights” with unions, his budget plan echoes the misguided priorities of other GOP governors. As Matt Yglesias has noted, Snyder has an innovative definition of “shared sacrifice.” His plan calls for “$1.2 billion in cuts to schools, universities, local governments and other areas while asking public employees for $180 million in concessions.” In addition, it would raise taxes on individuals by ending many deductions and taxing pensions — all in order to pay for $1.8 billion in tax cuts for businesses. Since the state’s entire budget shortfall this year is only about $1.7 billion, all or most of the cuts to services and programs important to the poor and middle class (many of whom will also see their taxes increases) could be avoided if the governor was willing to forego corporate tax breaks.
New Jersey: Gov. Chris Christie has become a right-wing sensation, particularly because of his war on public employees — especially New Jersey’s teachers. He’s often lauded by the conservative punditocracy for his tough talk and for balancing the state’s budget last year without raising taxes. Unfortunately, a look behind the curtain reveals that Christie’s numbers simply don’t add up. After vetoing Democrats’ plans to raise taxes on New Jersey’s millionaires, Christie closed the state’s multi-billion dollar shortfall through a combination of measures, including simply refusing to make contributions to the state’s pension fund and steep cuts in education funding and assistance to municipalities.
Democrats accused Christie of simply shifting the burden to local governments, which caused New Jersey’s already-high property tax rates to double even as the state was slashing funding to its property tax rebate program. (Former Minnesota Governor Tim Pawlenty used a similar gimmick during his final year in office.) Christie is also being sued by Federal Transit Administration for keeping $271 million in federal funding for a tunnel under the Hudson — money he insists on keeping even after having personally canceled the project.
New Jersey is staring down another large deficit and Christie’s budget, expected to be released today, will pair continuing austerity for education and local governments with further cuts to the state’s Medicaid program. The austerity measures and cuts to programs for the poor will have to be all the deeper this year as Christie is also insisting on cutting corporate tax rates.
Ohio, Texas, and Wisconsin after the jump.
Ohio: Gov. John Kasich demonstrated an early propensity for making future-losing choices when he made good on a campaign promise to kill Ohio’s federally-funded high-speed rail project — a move that will cost Ohio $400 million in badly-needed infrastructure investment, cost thousands of jobs, and derail millions of dollars in related private sector investments in economic development. Kasich, along with numerous other Ohio Republicans, has signed the Americans for Tax Reform pledge that rules out any tax increases to help the state make ends meet. Even though the state has an $8 billion budget shortfall, Kasich has gone even further in proposing a variety of tax cuts that would benefit corporations and the wealthy. In addition to going after public employees (who Kasich thinks should not ever have the right to strike) and essential government programs, he has proposed a variety dubious privatization schemes to finance such massive tax breaks.
Kasich has voiced support for radical Wisconsin Governor Scott Walker’s assault on the middle class and workers. The Ohio Senate takes up SB5, its version of anti-union legislation, today; at least 8 Republican Ohio state senators have already come out in opposition to the current proposal. The current proposal goes even further than the Walker plan in eliminating collective bargaining rights for Ohio’s public employees.
Texas: As ThinkProgress has reported, Gov. Perry spent the last two years traveling around the country attacking the stimulus and other Obama administration initiatives, all while touting the “Texas Miracle” (low taxes, low services, and low regulations). However, as Matt Yglesias noted, “It looks like the secret behind Texas’ ability to avoid the kind of budget woes that afflicted so many states last year was two-year budgeting rather than the miracle of low-tax, low-service, lax-regulation policies.” Moreover, Perry relied more on the stimulus than any other state to fill his 2010 budget gap, with stimulus funds plugging a full 97 percent of the gap.
In facing down a $25 billion budget crisis on par with that of California, Perry categorically rejected any tax increases. Texas, as Paul Krugman said, already takes a “hard, you might say brutal, line toward its most vulnerable citizens,” as indicated by its poor educational performance and sky-high 25 percent child poverty rate. Still, Perry also refuses to use any of the $9.4 billion in the state’s rainy day fund (some of which, ironically, comes from stimulus funds intended to help states stave off draconian cuts that Perry instead squirreled away) and is instead contemplating deep cuts to child services programs and education, among other things. Perry even floated a plan to drop Medicaid entirely. Perry’s proposed education cuts are so deep that they prompted an unlikely source to take to the pages of the Houston Chronicle to write in opposition to them — none other than former First Lady Laura Bush. Bond ratings agency Standard & Poors has also weighed in, saying Texas’ cuts-only approach “won’t solve the state’s long-term fiscal problems” and that revenue increases need to be considered alongside the deep cuts being proposed.
Wisconsin: Gov. Scott Walker first gained national headlines for joining Ohio’s Kasich in a future-losing decision to cancel an $800 million investment — fully paid for the by the federal government — in high-speed rail. This decision prompted train manufacturer Talgo to announce it was leaving the state and will likely cost the state thousands of jobs.
Walker is of course now famous for his high-stakes war against Wisconsin’s workers. Walker has used a very small short-term shortfall and larger shortfall to come (which is still smaller than shortfalls the state has faced in recent years) to move forward with an unpopular plan to destroy the state’s public employee unions. As Ezra Klein and many others have noted, Wisconsin’s unions aren’t to blame for the state’s budget problems and taking away their collective bargaining rights will have no impact on the state’s fiscal situation. Indeed, the unions offered to concede to all of Walker’s financial demands, so long as they could retain their collective bargaining rights. Walker balked at this offer, betraying his true motive: busting unions. Walker is also late in offering his budget, but it is believed that in spite of the supposed “crisis” and being “broke,” as Walker himself has said, his budget plans will include “a LOT more tax breaks” for the rich and corporations that will have to be balanced on the backs of workers or with painful cuts to state services and the state’s Medicaid programs, BadgerCare. It’s also worth noting that the last time Scott Walker went union busting, it turned into a massive boondoggle when he was overruled by an arbiter, wasting hundreds of thousands of taxpayers dollars in the process.
When Republican governors speak of “shared sacrifice,” it seems that the only thing they mean is sacrifices by the poor and middle class in order to fund massive tax breaks for the rich and corporations. As governors from across the country gather in Washington, D.C. at the end of this week at the winter meeting of the National Governors Association, ThinkProgress hopes to catch up with some governors to discuss their priorities — misplaced or otherwise.
- The still-unpublished manuscript, obtained by POLITICO, reveals Palin, as a candidate for governor, penning letters-to-the-editor in praise of herself, to be sent under other names. It blames the candidate for inflaming, rather than ignoring, scurrilous rumors. And it quotes her pledging to avoid appearing on any network other than Fox News, referring to the rest as “the bad guys.”Bailey, a former Alaska Airlines manager who worked on her 2006 gubernatorial campaign, also shares scores of emails he claims are from Palin that reinforce the worst perceptions of her.
The former governor has pointed to her portrayal in the news media to explain her sagging poll numbers. But in Bailey’s manuscript it’s her own apparent words that do the greatest damage.
- It’s the poor, the working, and the middle classes that must be made to pay, for in the Republicans’ psychotic world, government is existentially bad because it is through government that democracy tries to modulate the worst excesses of capitalism, which is existentially good.
- In the past 24 months, those of us who longed for positive change have gone from hope to heartbreak. But hope is returning to America -- at last -- thanks largely to the courageous stand of the heroes and heroines of Wisconsin. Reinvigorated by the idealism and fighting spirit on display right now in America's heartland, the movement for "hope and change" has a rare, second chance. It can renew itself and become again a national force with which to be reckoned.
- The State Highway Patrol limited access to the Statehouse today as thousands of protesters stood outside in the cold, many angry they could not get inside to register their opposition to a bill that would eliminate collective bargaining for state employees.
- What we cannot figure out is this: Why, if the state is in so much trouble, did Walker engineer the enactment of roughly $140 million in new tax breaks for multinational corporations, which the legislature passed in January? Why did he rush to reject federal transportation funding that other states – states with similar or worse fiscal challenges -- have rushed to collect? Why, in the very week that he was pushing his budget repair bill, did the governor reject federal broadband development money that Wisconsin's rural counties have been seeking for years? The answer to all of these questions is that the governor has made his budget decisions not with an eye toward fiscal responsibility but with an eye toward rewarding his political benefactors.
- Income inequality has grown dramatically since the mid-'70s—far more in the US than in most advanced countries—and the gap is only partly related to college grads outperforming high-school grads. Rather, the bulk of our growing inequality has been a product of skyrocketing incomes among the richest 1 percent and—even more dramatically—among the top 0.1 percent. It has, in other words, been CEOs and Wall Street traders at the very tippy-top who are hoovering up vast sums of money from everyone, even those who by ordinary standards are pretty well off.
- State records also show that [climate change deniers] Koch Industries, their energy and consumer products conglomerate based in Wichita, Kan., was one of the biggest contributors to the election campaign of Gov. Scott Walker of Wisconsin, a Republican who has championed the proposed cuts.Even before the new governor was sworn in last month, executives from the Koch-backed group had worked behind the scenes to try to encourage a union showdown, Mr. Phillips said in an interview on Monday.
- Hundreds of people rallied in Boise and ten other Idaho cities on Monday to protest a plan by the state's schools chief to lay off hundreds of teachers and curtail their collective bargaining.
- Wisconsin Faces Shortfall "Due Largely To Anticipated Medicaid Expenses And A Court-Ordered Repayment To A Fund That Was Raided Four Years Ago," And Walker's Tax Policies "Actually Make The State's Ongoing Budget Problem Worse."
- The crowd of protesters on the Capitol Square this afternoon has grown to as many as 60,000, according Joel DeSpain, a spokesman for the Madison Police Department.Early estimates of the pro-Walker (republican, anti-union) crowd were around 2,000.
- Solangi called the high number of deaths an anomaly and told the Sun Herald that it is significant, especially in light of the BP oil spill throughout the spring and summer last year when millions of barrels of crude oil containing toxins and carcinogens spewed into the Gulf of Mexico.
- Miss Rand, famously a believer in rugged individualism and personal responsibility, was a strong defender of self-interest. She was a staunch opponent of government programs from the New Deal and Social Security to the Great Society and Medicare.A Library of Congress survey of the most influential books on American readers, "Atlas Shrugged" ranked second only to the Bible. Rand's influence is encyclopedic ranging from Alan Greenspan to Paul "I grew up on Ayn Rand" Ryan (R-Wis), a "Young Gun" who aims to cut or privatize Medicare and Social Security.
The Right should be commended politically for their ability to develop and stick to a unified message. But close inspection of this unified message reveals a disappointing secret identified by a student of the Godfather of Neo-conservatism, --- the University of Chicago's Leo Strauss. The student, Anne Norton ("Leo Strauss and the Politics of American Empire") identified what she called VIP-DIP meaning Venerated in Public, Disdained in Private. "Do as I say, not as I do." The list of vip-dipers on the Right runs from Harold Bloom to Newt Gingrich, but certainly not Ayn Rand. Right?
A heavy smoker who refused to believe that smoking causes cancer brings to mind those today who are equally certain there is no such thing as global warming. Unfortunately, Miss Rand was a fatal victim of lung cancer.
However, it was revealed in the recent "Oral History of Ayn Rand" by Scott McConnell (founder of the media department at the Ayn Rand Institute) that in the end Ayn was a vip-dipper as well. An interview with Evva Pryror, a social worker and consultant to Miss Rand's law firm of Ernst, Cane, Gitlin and Winick verified that on Miss Rand's behalf she secured Rand's Social Security and Medicare payments which Ayn received under the name of Ann O'Connor (husband Frank O'Connor).
- A fight is brewing in Mississippi over a proposal [supported by Republicans] to issue specialty license plates honoring Confederate Gen. Nathan Bedford Forrest, who was an early leader of the Ku Klux Klan.
Priorities? GOP Governors Shift Burden To Poor, Middle Class To Pay For Tax Breaks For Rich, Corporations
by Josh Dorner
Published on Tuesday, February 22, 2011 by ThinkProgress
State budgets across the country are in disarray as a weak economy, the end of tens of billions in Recovery Act funds, and a GOP-led House that is pushing for deep cuts to many programs that benefit state and local governments set the stage for massive in shortfalls over the next two years. Instead of making the tough choices necessary to help their states weather the current crisis with some semblance of the social safety net and basic government services intact, Republican governors are instead using it as an opportunity to advance several longtime GOP projects: union busting, draconian cuts to social programs, and massive corporate tax breaks. These misplaced priorities mean that the poor and middle class will shoulder the burden of fiscal austerity, even as the rich and corporations are asked to contribute even less. Here’s a detailed look at how the GOP’s war on the poor and middle class is playing out at the state level:
Arizona: Following months of national outcry and at least two deaths, Gov. Jan Brewer’s administration has finally relented on what many likened to real-life “death panels” that denied care to those in need of transplants in order to save the state just over a million dollars. Now, however, Governor Jan Brewer is proposing to kick some 280,000 Arizonans, mostly childless adults, off the state’s Medicaid rolls. Brewer claims such a move is the only way to get the state’s fiscal house in order, as it would save $541.5 million in general funding spending. Brewer also wants to save $79.8 million by dropping 5,200 “seriously mentally ill” people from the state’s Medicaid program. Instead of balancing out these draconian cuts with additional revenue increases or simply not making the cuts in the first place, Brewer instead signed $538 million in corporate tax cuts into law two weeks ago.
Florida: Last week, Gov. Rick Scott announced that he was canceling a proposed high-speed rail line between Orlando and Tampa — something that will cause Florida to forego $2 billion in federally-funded investments and cost the state at least 24,000 jobs.
Scott’s move is opposed even by the Republican chairman of the U.S. House’s Transportation and Infrastructure Committee, and Obama administration officials are seeking ways to bypass Scott to keep the project moving.
Scott’s radical budget proposal, unveiled at a tea party event, includes $4.6 billion in spending cuts that would result in the direct loss of more than 8,000 jobs. It would also privatize large areas of state services, including juvenile justice facilities, Medicaid, and some hospitals. Education spending would be cut by more than $3 billion and teachers and other public employees would see their pensions under threat. Such deep cuts in essential programs and services are necessary to offset Scott’s proposal to cut corporate and property taxes by at least $4 billion.
Michigan: While newly-elected Gov. Rick Snyder has said he won’t “pick fights” with unions, his budget plan echoes the misguided priorities of other GOP governors. As Matt Yglesias has noted, Snyder has an innovative definition of “shared sacrifice.” His plan calls for “$1.2 billion in cuts to schools, universities, local governments and other areas while asking public employees for $180 million in concessions.” In addition, it would raise taxes on individuals by ending many deductions and taxing pensions — all in order to pay for $1.8 billion in tax cuts for businesses. Since the state’s entire budget shortfall this year is only about $1.7 billion, all or most of the cuts to services and programs important to the poor and middle class (many of whom will also see their taxes increases) could be avoided if the governor was willing to forego corporate tax breaks.
New Jersey: Gov. Chris Christie has become a right-wing sensation, particularly because of his war on public employees — especially New Jersey’s teachers. He’s often lauded by the conservative punditocracy for his tough talk and for balancing the state’s budget last year without raising taxes. Unfortunately, a look behind the curtain reveals that Christie’s numbers simply don’t add up. After vetoing Democrats’ plans to raise taxes on New Jersey’s millionaires, Christie closed the state’s multi-billion dollar shortfall through a combination of measures, including simply refusing to make contributions to the state’s pension fund and steep cuts in education funding and assistance to municipalities.
Democrats accused Christie of simply shifting the burden to local governments, which caused New Jersey’s already-high property tax rates to double even as the state was slashing funding to its property tax rebate program. (Former Minnesota Governor Tim Pawlenty used a similar gimmick during his final year in office.) Christie is also being sued by Federal Transit Administration for keeping $271 million in federal funding for a tunnel under the Hudson — money he insists on keeping even after having personally canceled the project.
New Jersey is staring down another large deficit and Christie’s budget, expected to be released today, will pair continuing austerity for education and local governments with further cuts to the state’s Medicaid program. The austerity measures and cuts to programs for the poor will have to be all the deeper this year as Christie is also insisting on cutting corporate tax rates.
Ohio, Texas, and Wisconsin after the jump.
Ohio: Gov. John Kasich demonstrated an early propensity for making future-losing choices when he made good on a campaign promise to kill Ohio’s federally-funded high-speed rail project — a move that will cost Ohio $400 million in badly-needed infrastructure investment, cost thousands of jobs, and derail millions of dollars in related private sector investments in economic development. Kasich, along with numerous other Ohio Republicans, has signed the Americans for Tax Reform pledge that rules out any tax increases to help the state make ends meet. Even though the state has an $8 billion budget shortfall, Kasich has gone even further in proposing a variety of tax cuts that would benefit corporations and the wealthy. In addition to going after public employees (who Kasich thinks should not ever have the right to strike) and essential government programs, he has proposed a variety dubious privatization schemes to finance such massive tax breaks.
Kasich has voiced support for radical Wisconsin Governor Scott Walker’s assault on the middle class and workers. The Ohio Senate takes up SB5, its version of anti-union legislation, today; at least 8 Republican Ohio state senators have already come out in opposition to the current proposal. The current proposal goes even further than the Walker plan in eliminating collective bargaining rights for Ohio’s public employees.
Texas: As ThinkProgress has reported, Gov. Perry spent the last two years traveling around the country attacking the stimulus and other Obama administration initiatives, all while touting the “Texas Miracle” (low taxes, low services, and low regulations). However, as Matt Yglesias noted, “It looks like the secret behind Texas’ ability to avoid the kind of budget woes that afflicted so many states last year was two-year budgeting rather than the miracle of low-tax, low-service, lax-regulation policies.” Moreover, Perry relied more on the stimulus than any other state to fill his 2010 budget gap, with stimulus funds plugging a full 97 percent of the gap.
In facing down a $25 billion budget crisis on par with that of California, Perry categorically rejected any tax increases. Texas, as Paul Krugman said, already takes a “hard, you might say brutal, line toward its most vulnerable citizens,” as indicated by its poor educational performance and sky-high 25 percent child poverty rate. Still, Perry also refuses to use any of the $9.4 billion in the state’s rainy day fund (some of which, ironically, comes from stimulus funds intended to help states stave off draconian cuts that Perry instead squirreled away) and is instead contemplating deep cuts to child services programs and education, among other things. Perry even floated a plan to drop Medicaid entirely. Perry’s proposed education cuts are so deep that they prompted an unlikely source to take to the pages of the Houston Chronicle to write in opposition to them — none other than former First Lady Laura Bush. Bond ratings agency Standard & Poors has also weighed in, saying Texas’ cuts-only approach “won’t solve the state’s long-term fiscal problems” and that revenue increases need to be considered alongside the deep cuts being proposed.
Wisconsin: Gov. Scott Walker first gained national headlines for joining Ohio’s Kasich in a future-losing decision to cancel an $800 million investment — fully paid for the by the federal government — in high-speed rail. This decision prompted train manufacturer Talgo to announce it was leaving the state and will likely cost the state thousands of jobs.
Walker is of course now famous for his high-stakes war against Wisconsin’s workers. Walker has used a very small short-term shortfall and larger shortfall to come (which is still smaller than shortfalls the state has faced in recent years) to move forward with an unpopular plan to destroy the state’s public employee unions. As Ezra Klein and many others have noted, Wisconsin’s unions aren’t to blame for the state’s budget problems and taking away their collective bargaining rights will have no impact on the state’s fiscal situation. Indeed, the unions offered to concede to all of Walker’s financial demands, so long as they could retain their collective bargaining rights. Walker balked at this offer, betraying his true motive: busting unions. Walker is also late in offering his budget, but it is believed that in spite of the supposed “crisis” and being “broke,” as Walker himself has said, his budget plans will include “a LOT more tax breaks” for the rich and corporations that will have to be balanced on the backs of workers or with painful cuts to state services and the state’s Medicaid programs, BadgerCare. It’s also worth noting that the last time Scott Walker went union busting, it turned into a massive boondoggle when he was overruled by an arbiter, wasting hundreds of thousands of taxpayers dollars in the process.
When Republican governors speak of “shared sacrifice,” it seems that the only thing they mean is sacrifices by the poor and middle class in order to fund massive tax breaks for the rich and corporations. As governors from across the country gather in Washington, D.C. at the end of this week at the winter meeting of the National Governors Association, ThinkProgress hopes to catch up with some governors to discuss their priorities — misplaced or otherwise.
Sean
