A FACT-DRIVEN VOICE FOR

MIDDLE WISCONSIN VIEWS

Middle Wisconsin
Information Technology Solutions
FROM THE MIDDLE OF THE STATE
FOR THE MIDDLE CLASS
News
www.MiddleWisconsin.com May 5, 2011

WELCOME Your 2010 Federal Taxpayer Receipt

Welcome to Middle Wisconsin The deadline for paying income taxes (April 18) has come and gone for another year, but few
News. Three weeks have passed of us have more than a vague idea of where our tax dollars actually go. This leads to misinfor-
since we published our last issue,
and we are once again highlighting
mation about government waste or the percent of revenue used for unpopular programs.
taxation because it relates to the
government austerity measures The following websites have been designed to provide taxpayers with a detailed receipt
harming families all across America. showing exactly how their tax dollars are used:
Along with introductions to excellent
websites on the subject, we are
republishing the ―Tax Talking www.whitehouse.gov/taxreceipt www.thirdway.org/taxreceipt
Points” document (see last 2 pages
of newsletter) developed by the MW
Research Committee in April. Also
included in this edition is an article
on the status of the senatorial re-
calls. As we are all aware, this is the
next critical battle in overcoming
Governor Scott Walker’s attack on
unions and working families. We are
pleased to have the work of several
Middle Wisconsin members in this
issue, and we feel sure you will
appreciate their contributions.
We are continuing to learn and
develop at Middle WI News, and
we expect to have a more estab-
lished format for the next edition of
the newsletter. Sarah Thurs has
done extraordinary work designing
these first publications to get us up
and running, but her true expertise
is as an editor. To help her step
back into that role, Tom Michlig has
graciously agreed to provide us with
his graphic design time and talents
for future issues, and we are excited
about the new doors this will open.
We are also grateful to Wix Covey
for sharing his ideas, enthusiasm,
and connections with us. It’s exciting
to see our group grow.
As always, it is the goal of the
newsletter to represent all of the
members of the Middle Wisconsin
community. This is our newspaper. In his State of the Union Address, President Obama promised that this year, for the first time
If you are interested in joining the ever, taxpayers would be able to go online & see exactly how federal tax dollars are spent.
Middle WI News committee or in
writing an op-ed, essay, or article,
It’s easy:
please see our ―Call for Submis-
sions‖ info on page 4.
1. Visit www.whitehouse.gov/taxreceipt
2. Enter 3 pieces of information from your 2010 tax return—
We hope you enjoy this 3rd edition
of Middle WI News. Social Security Tax, Medicare Tax, & Income Tax.
Editorial Committee
3. Click Calculate Receipt.
Dave & Paul Svetlik, Jim Mattes, You will instantly get a breakdown of how your specific tax dollars are spent on over 40
Sarah Thurs, Wix Covey,
& Tom Michlig programs and services, like education, veterans’ benefits, and health care. It’s that simple.

When people have the correct facts and figures, they can more wisely participate in democracy.
© 2011Middle W is c ons in

UPCOMING EVENT
May 13 & 14
Developing
Sustainable Communities
8 groups unite to present
an idea forum at the
UWMC Center for Civic
Engagement. The event
begins at 9 a.m. and wraps
up at 3:30 p.m. each day.
Friday—The focus is on
Business & Government.
Saturday—The focus shifts
to Households, Food
Systems, & Transportation.
Learn about the ―Natural
Step‖ program, a frame-
work used by organizations
and communities to move
toward economic, social,
and environmental sustain-
ability.
Following the speakers
each morning are lunch &
networking, 2 breakout
sessions, & a wrap-up
session.
For more information or to
register, visit: http:/
gogreencentralwiscon-
sin.com/content/sustainable-
forum-2011-schedule
Early pricing: Friday $30
Saturday $15
© 2011Middle W is c ons in
May 5, 2011
Middle Wisconsin News Page 2
Recall Elections to Be Held July 12
By Jim Mattes
If the Government Accountability Board (GAB) has its way, all 9
potential recall elections for state senate will be held on the same
day, July 12, pending approval of the signatures submitted by the
recall petitioners. A Dane County judge Monday struck down a
ruling that had set an early deadline for reviewing the recall peti-
tions that have been filed against the 9 senators. The GAB will now
have until the end of May to validate signatures and determine
which petitions trigger a recall election.
Democrats are outraged, feeling that the extra time provided the GAB gives out-of-state
special interest groups more time to ―protect their investments,‖ according to Democratic Party
spokesman Graeme Zielinski. He feels that the delay benefits candidates like Hopper and
Kapanke, who are benefiting from out-of-state corporate cash. Democrats are also
concerned that during this delay, Republicans may try to fast-track bills suiting their
agenda, such as the Voter ID bill and Carry and Conceal.
The Court’s ruling affects the 8 recall petitions filed prior to last Thursday. The one recall that
is not affected is that filed against Robert Cowles, R-Green Bay, which will follow the normal
review deadline process.
Projections have been made regarding the prospects of each of these recalls in terms of their
potential ―success.‖ While it is still early to assign categories of ―Toss-up,‖ ―Lean,‖ or ―Likely‖
ratings, we can group these senators in terms of ―opportunities for takeover.‖ Taken together,
they suggest that Democratic gains are more likely than not and that a Democratic
takeover of the chamber, while a long shot, is still a distinct possibility. The projections
listed below include the percentages of the 2004 and 2008 Presidential elections, as well as
the 2010 Governor’s race and the incumbent Senator’s 2008 race.
Democratic Opportunities
First Tier
Randy Hopper—(Bush 57%, McCain 47%, Walker 58%, Hopper 50.1%)
Hopper’s district, near Oshkosh, would normally point to a ―somewhat vulner-
able‖ rating, but his recent scandal involving his residence and an alleged mistress put this
seat into the ―very vulnerable‖ category. His opponent will be Jessica King, the current deputy
mayor of Oshkosh.
Dan Kapanke—(Bush 46%, McCain 38%, Walker 50%, Kapanke 51.4%) Kapanke’s district in
LaCrosse County showed one of the largest swings away from Scott Walker of any in the
state, and Walker barely carried this district in 2010. Add in the fact that Tuesday saw Steve
Doyle win the Assembly seat in the most Republican section of the district, and the indicators
point to this seat being ―very vulnerable.‖ His opponent will be Rep. Jennifer Shilling, the
same opponent who nearly beat Kapanke in 2008.
Second Tier
Sheila Harsdorf–—(Bush 51%, McCain 48%, Walker 58%, Harsdorf 56.4%) Harsdorf’s
district is in the far northwest bulge of the state, which swung heavily against Prosser in April’s
Supreme Court election. She did win handily in 2008, so she will be a formidable opponent.
The Democrats have selected Shelley Moore, an Ellsworth high school teacher and NEA
Board Member to oppose her. Expect lots of anti-union, anti-teacher advertising to be hurled at
Moore in this race.
Luther Olson—(Bush 56%, McCain 47%, Walker 57%, Olson–Unopposed) Olson’s district
has a distinctly Republican tilt, with Walker and Prosser both winning there handily. Olson has
had little or no opposition in years, so he appears to be in substantially better position than
Kapanke or Hopper. His opponent will be Rep. Fred Clark of Baraboo.
 May 5, 2011
Middle Wisconsin News Page 3

Recall Elections—Continued
Third Tier

Alberta Darling—(Bush 53%, McCain 47%, Walker 54%, Darling 50.5%) Dems are
excited about this race largely because of Darling’s near loss in 2008 and her recent
comments during the Joint Finance Committee’s public hearings that ―she doesn’t really
listen to the people who come to these hearings.‖ Former state lawmaker Sheldon
Wasserman is considering entering the race against her. He lost to her by less than
1,000 votes in 2008. This district is in the highly Republican Milwaukee suburbs, so this
seat will still be a tough win for the Dems.

ONGOING Robert Cowles—(Bush 47%, McCain 46%, Walker 57%, Cowles–Unopposed) This
INVITATION district comprises the Green Bay suburbs, and he has established himself with solid
credentials prior to his budget repair vote. He will be tough to unseat.

Mondays
5 pm
Day’s Bowl-A-Dome Republican Opportunities
Wausau
First Tier

Jim Holperin—(Bush 53%, McCain 46%, Walker 57%,

Bring a friend or Holperin 51%) This district is in a northern district that gave
two and join Prosser nearly the same margin as Walker. Recall supporters have chosen Tea Party
favorite Kim Simac to oppose Holperin, who has already begun running ads touting his
Middle Wisconsin service to the district. He will have his hands full retaining his seat.
members
Dave Hansen—(Bush 52%, McCain 42%, Walker 54%, Hansen 54.6%) Hansen’s
Monday nights to district in Green Bay was won by Prosser last month. His opponents are looking for a
talk current events challenger who can put together a credible campaign. Hansen is vulnerable but
& have some fun. probably has a slight edge against whoever is chosen.

Second Tier

Bob Wirch–—(Bush 48%, McCain 41%, Walker 53%, Wirch 52.4%) Based in
Kenosha, this district is as close to evenly divided politically as any in the state. Wirch
could have a tough race if opponents can find an attractive challenger.

Julie Lassa—(Bush 47%, McCain 39%, Walker 51%, Lassa 68%) Recall supporters
have not produced sufficient signatures yet and have until May 16 to do so. However,
her district is solidly Democratic. She should be safe, barring a complete collapse for the
Dems.

Meanwhile, state Republican leaders said on Wednesday that if the courts do not take
action by early June, they could re-pass the anti-union parts of the budget repair law as
part of the state budget. As it should be noted, this was always a legal option given the
particular nature of this fight. This potential action begs activists to get out to make their
votes count in these upcoming recall elections. July 12 will be a key date in determin-
ing the eventual fate of the budget bill and other pending legislation.
© 2011Middle W is c ons in

CALL FOR SUBMISSIONS
Middle Wisconsin News is
seeking submissions. We are
looking for letters to the edi-
tor, articles on relevant top-
ics, and reports from people
on the street (rallies, visits
with politicians, school board
and city council meetings,
etc.) We ask that letters be
limited to 600 words and that
references be cited where
appropriate.
Please provide author name,
municipality, and phone num-
ber for purposes of verification.
Feel free to contact us with
your ideas for articles. We
are seeking people who wish
to submit occasional work
and those who would like to
be regular contributors. Top-
ics can include politics, social
issues, economics, educa-
tion, local business, unions,
events, and other appropriate
topics. We hope to represent
the broad spectrum of people:
blue collar and white collar
workers, public and private
employees, union and non-
union members, business
owners, farmers, and more.
Submissions may be edited
for length, clarity, accuracy,
and taste, but we will seek
the author’s approval before
publication.
Emailed submissions should
be sent in plain text or as
Microsoft Word attachments.
If you would like to contribute,
contact
dave@middlewisconsin.org.
© 2011Middle W is c ons in
May 5, 2011
Information
Middle Technology
Wisconsin News Solutions Page 4
An Open Letter to Gov. Walker
Below are just 4 paragraphs reprinted from an Open Letter that Joyce
Leudke sent to Gov. Walker. The original letter was much longer. Joyce
has approved of this shortened version to be included in this newsletter.
Dear Gov. Walker:
Your proposed budget does not reflect the values of Wisconsin or the values of Wis-
consinites. We believe in working together: helping our neighbor, sacrificing for our
state and country, caring for the poor, the disadvantaged, the vulnerable, the veterans,
the elderly, and the disabled. We believe in advocating for people who do not have a
voice, or have lost their voices because they do not have the political clout that comes
with money. We believe in pulling together for the good of all people in good times
and especially so in hard times. We believe in giving to charities—with money and/or
time. We come together to celebrate the beauty of our state and the goodness of its
people. We work tirelessly in our occupations to produce quality goods and services,
educate our citizenry, and protect the environment.
Our elected officials have, for the most part, been honest and have a vision to improve
our state in every way they can. We are probably some of the hardest working people
in the United States. We have pride in our students’ high achievements (usually within
the top 5 in standardized test scores). We cheer for and encourage our sports teams.
Best of all, we LOVE OUR STATE because we know for the most part we maintain a
high quality of life. And for those who do not share this same quality of life for what-
ever reason, we take care of them and sacrifice for them.
To be honest, what is happening in our great state is absolutely heartbreaking. I have
to admit, I have cried! I have mourned hearing neighbor vs. neighbor attacks, hearing
public servants being singled out as the “haves” and the rest of the citizens the “have
nots.” It hurts to see our state divided with such hateful rhetoric. It causes me to grieve
over what have lost in this short three months’ time. I worry about how our state is
going to heal from the harm that has been done to us by pitting one group against an-
other. What is happening in my once proud state is not the vision I have for us.
I believe we are Wisconsinites first and Americans next. We are proud. We have a “can
do” spirit that has carried us through worse times than this. I do not believe in your dis-
mal, pessimistic vision for the state of Wisconsin. I do not share your vision of “We are
broke.” I share President Obama’s vision of hope and resilience. We will get through
this somehow, but you need to lead us in a way that unites us—not divides us. You
need to show us that you are a leader who unites—not someone who pits us against each
other. You need to show us that you are not beholden ONLY to your campaign contribu-
tors, but that you owe your allegiance to each person in this great state.
You can start fresh today. I suggest you start immediately and change your course and
your rhetoric. Be a leader worthy of the people of Wisconsin. I believe in hope and
that you can, by changing your course, bring healing to this state.
Sincerely,
Joyce Luedke

A BIT OF HUMOR
BILLIONAIRES
& COOKIES
A billionaire, a tea partier,
and a union member were
seated at a table that had
a plate of 12 delicious
cookies.
The billionaire reached
over and took 11 cookies.
He then looked at the tea
partier and said, ―watch out
for that union guy; he’s
trying to take your cookie.‖
Taken from a recent article
by Les Leopold, author of
“The Looting of America.”
© 2011Middle W is c ons in
May 5, 2011
Information
Middle Technology
Wisconsin News Solutions Page 5
Interesting Facts...
FACT:
Hedge Fund Managers Set New
Payout Records in 2009
Excerpt from Reuters magazine | BOSTON | Thu Apr 1, 2010 11:39am EDT
―Seven of the world's top hedge fund managers earned 10-figure paychecks and one set a
record for the highest-ever payout last year due to a stock market rally that pushed returns to
their highest levels in a decade.
Together, the industry’s 25 best-paid managers collected a record $25.33 billion, more than
double the amount they took home in 2008 when the financial crisis left many prominent funds
nursing heavy losses.
In 2007, the top 25 set a record by taking home $22.3 billion.‖
FACT:
Pay of Hedge Fund Managers
Roared Back Last Year
By NELSON D. SCHWARTZ and LOUISE STORY
Excerpt from the New York Times | Business | March 31, 2010
―But in a startling comeback, top hedge fund managers rode the 2009 stock market rally to
record gains, with the highest-paid 25 earning a collective $25.3 billion, according to the sur-
vey, beating the old 2007 high by a wide margin.
The minimum individual payout on the list was $350 million in 2009, a sign of how richly
compensated top hedge fund managers have remained despite public outrage over the pay
packages at big banks and brokerage firms.‖
COMMENTARY:
Some of the top 25 hedge fund managers made more than $1 billion
in 2009. Some made less, but on average they made $1 billion each.
Assuming a teacher is paid $50,000 plus $18,000 in benefits
for a total of $68,000, a single hedge fund manager
earns as much as 14,705 teachers.
Additionally, the hedge fund manager pays a lower tax rate than the
teachers (15%) because his/her income is treated as capital gains.
Milwaukee currently has about 5,475 public school teachers,
Madison 1,938, Minneapolis 3,302, and St. Paul 3,304, for a total of
14,019 teachers. One hedge fund manager makes more than all of
the teachers in all of these districts combined.
Wonder why there's government debt?

MISSION STATEMENT
Middle Wisconsin is an
independent, citizens’ coalition
working to evaluate and sup-
port political candidates and
measures that promote just
and transparent government,
healthy communities,
social responsibility,
thriving local economies,
environmental stewardship,
and quality education.
© 2011Middle W is c ons in
May 5, 2011
Information
Middle Technology
Wisconsin News Solutions Page 6
The Politics of Crime in Wisconsin
By Virginia Kirsch
The ―Future of Public Higher Education‖ Forum, held at the
University of Wisconsin–Marathon County on April 18, 2011,
covered the impact of Governor Scott Walker’s Budget on
Wisconsin higher education. An intriguing part of this discus-
sion compared how Minnesota and Wisconsin, with similar
demographics, differ in their approach to crime.
Minnesota has about 10,000 inmates in their prisons, while
Wisconsin has over 23,000. Minnesota uses alternatives
to incarceration with parole and probation plans, and as a result, is able to invest more
money in education. According to a recent Pew study, nearly half of Wisconsin prisoners
commit repeat offenses and return to prison, and Wisconsin now spends more on prisons than
on higher education.
A correlation has been made between one’s level of education and the chances of being in-
carcerated. Studies show a large return on investments in pre-school and helping at-risk stu-
dents. We either ―pay now or pay later.‖ A community that is focused on education, rather than
prisons, is likely to be a more positive place to live.
Unfortunately, the ―politics of crime‖ have led to prisons as a growth industry in Wisconsin.
The ―get tough on crime‖ policies of Tommy Thompson increased prison costs by raising the
numbers of incarcerations. In 1987, Wisconsin spent $185 million annually on prisons. By the
year 2003, $1 billion was spent. Gov. Walker’s budget shows $1.3 billion for prisons in 2011–
2012.
When Walker was in the State Assembly in 1997, he authored the bill that became the Truth-
in-Sentencing Law. This law increased the maximum sentences for felony convictions and
eliminated parole, thereby increasing the number of prisoners and their length of stay. Wis-
consin now has one of the strictest prison laws in the nation.
Governor Jim Doyle tried to weaken ―truth-in-sentencing‖ by allowing early release of non-
violent offenders. This saved thousands of dollars. By developing new methods of correction,
Doyle had hoped to stop prisons as a growth industry. Governor Walker now wants a return to
tougher sentencing.
Research shows that Wisconsin does not use prisoners for cheap labor to the extent found in
other states. Badger State Industries was formed in 1913 to provide prisoners with vocation
training and to develop work skills. It also provides products and services for state, county,
and municipal agencies. Making license plates is a well-known function, however other indus-
tries in the state prisons are making wood furniture, detention furniture, new and recycled
signage, and doing laundry. There is also a dairy farm, feedlot, and cash crops for prisoners to
learn agricultural skills. Another industry is recycling computers and recycling wheel chairs.
There is no evidence of private companies using prisoners for cheap labor.
Questions often arise about the prison in Stanley, Wisconsin. This facility was built by a pri-
vate company on speculation (anticipating an increase in prisoners). Wisconsin bought the
prison and Stanley welcomed the new industry. The prison, with 1500 inmates, created 400
jobs which local people needed. However, an excellent report by Tracy Huling shows that
using prisons to solve the problem of unemployment in small rural towns is not all positive.
Living in a town with a prison-town identity creates its own set of problems.
SOURCES
―Building a Prison Economy in Rural America,‖ by Tracy Huling www.prisonpolicy.org
(This is an excellent article with an in-depth look at what prisons do to small rural towns.)
―Big House on the Prairie‖ (Impact of Prison in Stanley, WI) www.minneapolisfed.org
―The Cost of Corrections: Wisconsin and Minnesota‖ www.wistax.org

“There are two novels
that can change a
bookish fourteen-year-
old’s life: The Lord of
the Rings and Atlas
Shrugged.
One is a childish
fantasy that often
engenders a lifelong
obsession with its
unbelievable heroes,
leading to an emotion-
ally stunted, socially
crippled adulthood,
unable to deal with the
real world.
The other, of course,
involves orcs.”
— John Rogers
Kung Fu Monkey
© 2011Middle W is c ons in
May 5, 2011
Middle Wisconsin News Page 7
A Poet's Advice i left graduate school
A poet is somebody who feels, and who expresses his feelings through
in history
words. to do real work
This may sound easy. It isn't.
in the world
of capitalists
A lot of people think or believe or know they feel—but that's
at the chicken factory
thinking or believing or knowing; not feeling. And poetry is
feeling—not knowing or believing or thinking. i was assigned to the
freezer locker
Almost anybody can learn to think or believe or know, but not a single
human being can be taught to feel. Why? Because whenever you think and the deboning
or you believe or you know, you're a lot of other people: but the
moment you feel, you're nobody-but-yourself. machine
one day as I was cleaning
To be nobody-but-yourself—in a world which is doing its best, night
and day, to make you everybody else—means to fight the hardest the machine
battle which any human being can fight; and never stop fighting.
with a steam hose
As for expressing nobody-but-yourself in words, that means working the steam hose
just a little harder than anybody who isn't a poet can possible
whipped off the floor
imagine. Why? Because nothing is quite as easy as using words like
somebody else. We all of us do exactly this nearly all of the sprayed my feet
time—and whenever we do it, we are not poets.
and took off the skin
If, at the end of your first ten or fifteen years of fighting and it took four weeks
working and feeling, you find you've written one line of one poem,
you'll be very lucky indeed. to heal
the insurance man
And so my advice to all young people who wish to become poets is: do
came after three weeks
something easy, like learning how to blow up the world—unless you're
not only willing, but glad, to feel and work and fight till you die. and said return to work
Does this sound dismal? It isn't.
i say no my feet
are not healed
It's the most wonderful life on earth.
after four weeks
Or so I feel. when I returned to work
my job was gone
— e. e. cummings
there was no union
forty years later
my feet still remember
steam in the chicken
factory
— cyrus campen
local poet
 May 5, 2011
Middle Wisconsin News Page 8

“And if all others accepted the lie which the party

CHALLENGING THE MYTH... imposed—if all records told the same tale—
then the lie passed into history and became the truth.”
—George Orwell, 1984 (published in 1949)

The Fallacy of
Government Spending
By Dave Svetlik

All across America we are being told that government spend-
ing is out of control, and we must sacrifice to rein in debt. We
have accepted this as fact, but the actual record paints a dif-
ferent picture.
Government spending as a percent of gross domestic prod-
uct has changed little in 4 decades. Using statistics available
at www.usgovernmentspending.com , we find that federal
spending was 18.84% of GDP in 1970, rose to a high of
22.92% in 1982, and
settled at 20.65% in
2008. If we include
state and local
spending, a similar
pattern emerges.
Total government
spending was 31%
of GDP in 1970, rose
to a high of 37.22%
in 1991, and sank to
36.94% in 2008.
Because of bank
bailouts and stimulus
funding, federal
spending rose to
24.57% of GDP in
2009 and 25.44% in
2010. However,
these years must be
viewed as anomalies
resulting from the economic collapse. The critical issue is
what occurred with government debt from 1970 to 2008,
even though spending remained relatively constant.
Federal debt was 35.72% of GDP in 1970 and remained near
this level until ending 1982 at 35.10%. At this point (not coin-
cidentally at the same time that the Ronald Reagan presidency
was ushering in the era of ―trickle down‖ economics), we
begin to see a dramatic change. Federal debt rose to 38.96%
in 1983 and, with minor reductions at the end of the Clinton
years, climbed steadily to 69.15% in 2008. If we include state
and local government debt, the pattern is the same. Total
government debt was 49.55% in 1970 and closed out 1982
at 47.52%. In 1983, total debt rose to 51.81% and it contin-
ued rising to end 2008 at 86.81%. The graph above com-
pares total government (combined federal, state, and local)
spending and debt as a percent of GDP for the years 1970 to
2008. (Note the rise of both debt and spending in Reagan
and Bush years and the leveling or drop in Clinton years.)
This discussion is obviously simplistic given the complexity of
America’s economic problems, but the claim that our national
debt is the result of runaway government spending is the
greatest oversimplification of all. Government has largely
been doing what government is intended to do (i.e., provid-
ing the services, regulations, and infrastructure required for a
healthy society). If we are to
understand what caused
America’s growing debt, we
must look elsewhere.
Much has been written to ex-
plain the economic collapse
and the growth of government
debt, but two factors stand
out; deregulation (especially of
the financial industry), and tax
cuts for corporations and the
ultra-wealthy. Deregulation
began with President Carter
and continued through every
administration thereafter.
Largely harmful to average
Americans, it enabled the
predatory banking practices
responsible for the economic
crash. The dismantling of cor-
porate and progressive taxes
on the wealthy over the past 30 years has resulted in historic
levels of concentrated wealth and the loss of revenue re-
quired for government to meet its normal obligations. Making
matters worse, the high unemployment caused by the eco-
nomic collapse has further reduced revenue.
Orwell’s prescient words are more applicable to each of us
than we realize. When we unthinkingly agree that govern-
ment has overspent, we become complicit in the myth—we
become the ―all others‖ who accepted the lie. Unfortunately,
this is just one of many myths oppressing ―middle‖ Ameri-
cans. If we ever hope to regain control of the message, we
need to be aware of how we may inadvertently be part of the
problem.
For two excellent articles on controlling the message see
―What Conservatives Really Want‖ and ―Untellable Truths by
George Lakoff, Professor of Linguistics at UC—Berkeley.

Talking Points
Robin Hood in Reverse:
A Review of Current Taxation in Wisconsin
and the United States
Throughout the country, the discussion
surrounding tax breaks for the wealthy and
corporations have become the center of a heated
debate.
In Wisconsin, proponents of corporate tax cuts say they
boost economic growth and corporate investment. Would
Governor Walker’s proposed cuts be good for Wisconsin’s
economy?
According to Nick Johnson, Vice President from State Fiscal
Policy, “The evidence does not support that argument. Here’s
why: states have to balance their budget. So the revenue that
states lose from say, corporate tax cuts, has to be made up for
by greater cuts in public services. The services that states
provide, education, health care, public safety, transportation, are
critical to, not only quality of life, but also to making this state
attractive to businesses that want to invest and grow. Every
dollar that you cut out of education, because of a corporate
tax cut, is a dollar that can’t be spent on creating the high
quality, 21st century workforce that we know, from business
executives, is what they really need.”
Johnson also states, “There’s another issue with corporate income
tax cuts. A lot of the benefit from a corporate income tax cut
will go to multi-state corporations and there’s no guarantee at
all that they will spend that money in-state. Much of it could go
to out of state shareholders, or to increase their investments in
other states. So from a state perspective, it’s particularly not
helpful to cut corporate taxes.”
“…the reality is that in most states
corporate income taxes make up too small
a share of overall state and local taxes to
really affect corporate investment
decisions in the long run.”
Source: Center on Budget and Policy Priorities, www.cbpp.org
Top 10 Worst Tax Avoidance
Corporations
1. Exxon Mobil made $19 billion in profits in
2009. Exxon not only paid no federal income
taxes, it actually received a $156 million
rebate from the IRS, according to its SEC
filings.
2. Bank of America received a $1.9 billion tax
refund from the IRS last year, although it
made $4.4 billion in profits and received a
bailout from the Federal Reserve and the
Treasury Department of nearly $1 trillion.
3. Over the past five years, while General
Electric made $26 billion in profits in the
United States, it received a $4.1 billion
refund from the IRS.
4. Chevron received a $19 million refund from
the IRS last year after it made $10 billion in
profits in 2009.
5. Boeing, which received a $30 billion contract
from the Pentagon to build 179 airborne
tankers, got a $124 million refund from the
IRS last year.
6. Valero Energy, the 25th largest company in
America with $68 billion in sales last year
received a $157 million tax refund check
from the IRS and, over the past three years, it
received a $134 million tax break from the
oil and gas manufacturing tax deduction.
7. Goldman Sachs in 2008 only paid 1.1% of its
income in taxes even though it earned a profit
of $2.3 billion and received an almost $800
billion from the Federal Reserve and U.S.
Treasury Department.
8. Citigroup last year made more than $4 billion
in profits but paid no federal income taxes. It
received a $2.5 trillion bailout from the
Federal Reserve and U.S. Treasury.
9. ConocoPhillips, the fifth largest oil company
in the United States, made $16 billion in
profits from 2007 through 2009, but received
$451 million in tax breaks through the oil
and gas manufacturing deduction.
10. Over the past five years, Carnival Cruise
Lines made more than $11 billion in profits,
but its federal income tax rate during those
years was just 1.1%.
Source: Senator Bernie Sanders' floor speech, 3/27/11, visit
http://sanders.senate.gov
 Where Do Our Federal Tax Dollars Go?

Six Tests for Corporate Tax Reform

Source: By Chuck Marr and Brian Highsmith, Center on Budget and

Policy Priorities, www.cbpp.org
Updated February 28, 2011

1. Contribute to long-term deficit reduction. Corporate tax

revenues are now at historical lows as a share of the economy, at a
time when the nation faces deficits and debt that are expected to
grow to unsustainable levels.

2. Reduce the tax code’s bias towards debt financing. The current
corporate tax code encourages corporations to finance their
investments with debt (e.g., by issuing bonds) rather than equity
(e.g., by selling stock).

3. Reduce the tax code’s bias toward overseas investments. U.S.

multinationals pay much lower taxes on profits from their overseas
investments than on profits from their domestic investments. That
gives corporations a strong incentive to shift economic activity and
income from the United States to other countries.
Please Complete Your Own
4. Improve economic efficiency by reducing special preferences. Research
The corporate tax code taxes different kinds of corporate
investments at very different rates. This “unlevel playing field” Becoming an informed citizen is crucial to
the future state of our democracy. Please
encourages businesses to choose among investments in substantial
take some time to review these resources
part based on their tax benefits, instead of making those decisions and share them with your friends in the
based entirely on investments’ real economic value. coming days.

5. Provide more neutral treatment of corporate and non- www.USUncut.org

corporate businesses. Over time, various policy changes have
made it easier for companies to enjoy the benefits of corporate
status without being subject to the corporate income tax. Reform
should reflect the guiding principle that firms engaging in similar
activities and enjoying similar legal benefits should be taxed at
similar rates.
US Uncut is a grassroots movement taking direct
action against corporate tax cheats and unnecessary
and unfair public service cuts across the U.S.
Washington's proposed budget for the coming year
sends a clear message: The wrath of budget cuts will
fall upon the shoulders of hard-working Americans.
That's unacceptable.

6. Take specific steps to discourage tax sheltering. If

policymakers lower the statutory corporate tax rate to well below
the top individual tax rate, they should also establish safeguards to
prevent high-income individuals from sheltering their income in
corporations in order to pay taxes at a lower rate.
Center on Budget and Policy Priorities
www.cbpp.org.com
The Center on Budget and Policy Priorities is one of
the nation’s premier policy organizations working at
the federal and state levels on fiscal policy and public
programs that affect low- and moderate-income
families and individuals.

www.middlewisconsin.org

Issue 2
April 16, 2010