Union's Keep Pushing Taxes Higher in California

Who can forget the Chicago Teachers Union Activist above, but that attitude does not seem to be exclusive to Illinois.  California Gov. Jerry Brown is pushing a new scheme to force tax increases on the taxpayers in the Golden State and not surprisingly, it is the teacher's union pushing the plan behind the curtain?  From the OCRegister: Gov. Jerry Brown says the odds improved last week that voters will approve tax increases in November because he and the California Federation of Teachers merged their separate tax-raising schemes into one. This was not a compromise. Mr. Brown caved in to union pressure. Public employee unions were major financial backers of the governor's 2010 election campaign. In seeking huge tax increases to pay for government spending, he is doing unions' bidding. By merging initiatives, Mr. Brown agreed to reduce the increase he sought in the sales tax from a half cent to a quarter cent. But he agreed to seek a larger income-tax increase tax on more-affluent taxpayers. The new initiative would raise the top tax rate by 1 percent for those earning $250,000, 2 percent for incomes exceeding $300,000 and 3 percent on $500,000 and more. The state's top rate already is 10.3 percent, for those earning $1 million a year. The combined initiative is projected to raise $9 billion compared with the $7 billion the governor previously proposed. The tax increases would last seven years, rather than the previous five years.

Union's Keep Pushing Taxes Higher in California

Who can forget the Chicago Teachers Union Activist above, but that attitude does not seem to be exclusive to Illinois.  California Gov. Jerry Brown is pushing a new scheme to force tax increases on the taxpayers in the Golden State and not surprisingly, it is the teacher's union pushing the plan behind the curtain?  From the OCRegister: Gov. Jerry Brown says the odds improved last week that voters will approve tax increases in November because he and the California Federation of Teachers merged their separate tax-raising schemes into one. This was not a compromise. Mr. Brown caved in to union pressure. Public employee unions were major financial backers of the governor's 2010 election campaign. In seeking huge tax increases to pay for government spending, he is doing unions' bidding. By merging initiatives, Mr. Brown agreed to reduce the increase he sought in the sales tax from a half cent to a quarter cent. But he agreed to seek a larger income-tax increase tax on more-affluent taxpayers. The new initiative would raise the top tax rate by 1 percent for those earning $250,000, 2 percent for incomes exceeding $300,000 and 3 percent on $500,000 and more. The state's top rate already is 10.3 percent, for those earning $1 million a year. The combined initiative is projected to raise $9 billion compared with the $7 billion the governor previously proposed. The tax increases would last seven years, rather than the previous five years.

Union Bosses Fight for Dues Money

The widely respected political journalist Michael Barone's take on the battle of Wisconsin: Everyone has priorities. During the past week Barack Obama has found no time to condemn the attacks that Libyan dictator Moammar Gadhafi has launched on the Libyan people. But he did find time to be interviewed by a Wisconsin television station and weigh in on the dispute between Republican Gov. Scott Walker and the state's public employee unions. Walker was staging "an assault on unions," he said, and added that "public employee unions make enormous contributions to our states and our citizens." Enormous contributions, yes -- to the Democratic Party and the Obama campaign. Unions, most of whose members are public employees, gave Democrats some $400 million in the 2008 election cycle. The American Federation of State, County and Municipal Employees, the biggest public employee union, gave Democrats $90 million in the 2010 cycle. Follow the money, Washington reporters like to say. The money in this case comes from taxpayers, present and future, who are the source of every penny of dues paid to public employee unions, who in turn spend much of that money on politics, almost all of it for Democrats. In effect, public employee unions are a mechanism by which every taxpayer is forced to fund the Democratic Party.

Change in Wisconsin

Change in Wisconsin

 Newly elected Wisconsin Governor Scott Walker is not backing down from a fight to protect taxpayers.  Walker has proposed reforming the state's collective bargaining laws to protect taxpayers.  The Wall Street Journal takes note:  Wisconsin Governor-elect Scott Walker has laid out an ambitious agenda, such as turning the department of commerce into a public-private partnership and lifting the cap on school vouchers. But his boldest idea may be rescinding the right of government employees to collectively bargain. Mr. Walker floated the idea last week in response to union opposition to his modest proposal to require employees to contribute 5% of their pay to their pensions and to increase their health-care contributions to 12% from as low as 4% today. Even along the Left Coast most state workers contribute 10% of their salary to pensions. The Republican estimates that these changes would save the state $154 million in the first six months. Over two years they'd reduce the state's $3.3 billion budget gap by nearly 20%. The ability of public workers to form unions and bargain collectively is a phenomenon of the last century when state and local governments were relatively small. But it has proven to be a catastrophe for taxpayers, as public unions have used their political clout to negotiate rich deals on wages, pensions and health care. California governor-elect Jerry Brown greased the wheels for his state's long fiscal decline when he allowed collective bargaining during his first stint in the statehouse in the 1970s. Republican Governor Mitch Daniels of Indiana and then Governor Matt Blunt of Missouri rescinded collective bargaining by executive order in 2005, and the change made it easier to cut spending and restructure government services. In Wisconsin, the legislature would have to rewrite the Employment Labor Relations Act, but Republicans will control both the assembly and senate and have the political incentive to go along with Mr. Walker.Rescinding public collective bargaining rights restores a better negotiating balance between taxpayers and government employees who ostensibly work for them. Political officials are no longer on both sides of the bargaining table—representing taxpayers in negotiations with the unions while seeking union cash and endorsements when running for re-election.