Saturday, June 25, 2011

Our Take On It

The causes of these budget problems were attributed by the CBO to a combination of; baby-boomers aging, what has come to be known as "The Bush Bailout" and "Obama's Stimulus Package" as well as growing interest on these debts and budget imbalance prior to 2007.
Several states have experienced budget deficits. States received Federal monies from the stimulus and, unfortunately, did not plan for future revenues to cover existing costs. Federal and States are deciding how to raise revenues. Someone will be paying more taxes. Will it be the wealthiest, middle-America, the poorest or a combination?
In Wisconsin, Governor Walker understands that revenue must be increased but is afraid that raising taxes on the wealthiest and/or profitable companies will scare business away from the state. He chose to increase revenue by raising taxes on those earning under $24,680 that do not receive public assistance and working families that qualify for the Federal Earned Income CreditLink to legislation
Minnesota is at a standstill. The Governor wants to reinstate some higher taxes on the wealthiest and profitable companies but refuses to raise taxes on the poor and middle-class. The Senate and House Majorities, similar to WI, refuse to raise taxes on the wealthiest and profitable companies and insist on raising taxes on the poor and middle class. If they don't make a decision by Thursday, the state will, as it did under Former Governor Pawlenty, experience a costly shut-down.

These same National Debates continue. Who will pay higher taxes?
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