Where Have All the Wisconsin Jobs Gone?
July 24, 2009 by Capt. Karl
From Wisconsin Assemblyman John Nygren
Where are the Jobs?
Wisconsin’s unemployment rate has jumped to 9.2 percent in June, just under the national average of 9.7. Oconto and Marinette Counties’ unemployment rates were worse, 12.2 and 12.7 respectively according to the most recent data. Because of these dire numbers you would think our current leadership would be pushing policies that create jobs. Unfortunately, they have pushed through a budget that was described by an employer in Wisconsin like this, “They’ve sure given a lot of people the impetus to get the hell out of here.”
Included in the budget is an income tax increase that will impact 4,600 small business owners who file their taxes as personal income. As well, capital gains (personal and employer gains on investment) taxes were doubled and corporate taxes were increased by hundreds of millions of dollars. Taxes on your garbage and small business waste were raised to the highest levels in the nation. These changes don’t exactly give incentives to employers to invest in Wisconsin. These budget changes actually do the opposite.
The effect of the tax and policy changes in the budget has been immediate and damaging. Harley Davidson cut 400 jobs earlier in the year and cited tax law changes (combined reporting passed into law by the governor and Democrats) as one of the reasons. These changes were estimated to cost Harley $22.5 million. Briggs and Stratton recently announced they will be cutting 430 jobs in Wisconsin and moving them to Alabama and Georgia instead of moving Alabama or Georgia jobs to Wisconsin. This move is expected to save the company millions.
On top of these announcements, Mercury Marine of Fond du Lac has been discussing the possibility of moving 2,000 jobs to Oklahoma. The move will depend on how aggressive either state is at attracting Mercury Marine. Oklahoma has already stated they are doing everything possible to attract Mercury Marine. The Oklahoma legislature voted to forgive $1.2 million in taxes owed by Mercury Marine and they’re in negotiations to offer other incentives to move the Fond du Lac plant to Oklahoma. Considering Oklahoma is a right-to-work state and in the budget that just passed in Wisconsin Mercury Marine would be on the hook for additional taxes, I am not optimistic.
By rewarding special interests in the budget with billions in spending at the expense of private employers, the Wisconsin Democrats have given no reason for an employer to stay in Wisconsin if greener pastures are available. Companies invest in states they feel will partner with them and grow their investment. These investments create jobs – jobs that state residents desperately need.
We should be doing everything possible to hold the jobs we have, to provide for the unemployed through direct benefits and job training assistance, and giving employers looking for business friendly states during this economic downturn incentives to plant their roots here.
Until we do these things we will continue to lose jobs. At best, unemployment will begin to level off and stagnate. If this happens, revenues from private employers and working individuals will continue to drop and the schools and social services that depend on these revenues to operate will suffer.
Because of the actions taken in the budget passed by Democrats this year, the next budget will have a deficit that will be just as bad if not worse than the $7 billion we had earlier this year. The odds of $2.2 billion in federal ‘stimulus’ money being available to plug budget holes in K-12, Medicaid, and local aids next budget cycle is not likely. Wisconsin is already operating under a $2 billion structural deficit that will have to be closed in the next budget. That number will grow if Wisconsin continues to lag behind in economic growth.
Wisconsin is in a competition with 49 other states for job creation and retention. Based on the performance of our leadership this year we are losing that competition. There are jobs moving and being created during this recession in the United States. They are just in other states like Texas, Georgia, Oklahoma, and Alabama. Unfortunately, some of those jobs moved and were lost from right here in Wisconsin.
* * * * * * * ****************************************************************
FROM: The Liberty Tree Lantern
WE MUST RECALL DOYLE BEFORE ALL OUR SMALL BUSINESSES MOVE OR CLOSE UP FOR GOOD.
Signup as a volunteer circulator of petitions at www.RecallDoyle.com
