tag:blogger.com,1999:blog-3426800777521979578.post4741369114550330679..comments2024-02-20T19:58:27.733-06:00Comments on Jake's Wisconsin Funhouse: At Walker's 2nd inaugural, the state budget is in worse shapeUnknownnoreply@blogger.comBlogger6125tag:blogger.com,1999:blog-3426800777521979578.post-70259478131223536962015-01-06T11:53:03.657-06:002015-01-06T11:53:03.657-06:00The reduction in income taxes collected so far are...The reduction in income taxes collected so far are indeed a function of the lower withholdings, and that's why I've been using the "adjusted" income tax figures. There's still a $250 million shortfall when you make that adjustment, by the way.<br /><br /> The real kicker will be when state income tax refunds are lower over the next 3 months, because less was taken out in the first place. And as you mention, I think the corporate tax reductions will cost a lot more revenue than when it was first estimated. The likelihood is that tax revenues will be even lower than they expect todayJake formerly of the LPhttps://www.blogger.com/profile/15660401299391001751noreply@blogger.comtag:blogger.com,1999:blog-3426800777521979578.post-1124773543280647582015-01-06T09:11:43.577-06:002015-01-06T09:11:43.577-06:00Well, it all starts to come clear beginning in Jan...Well, it all starts to come clear beginning in January and continuing through April. <br /><br />The Walker people have said that the reduction in state personal income tax collections from their original estimates is due to the change in the withholding requirements reflected in the state withholding tables for 2014 (why their revenue estimates didn't adequately reflect that potentiality, is always greeted by mumbles, and comments like: "look over there!"). <br /><br />I, on the other hand, think that a good part of the personal income tax collections gap in 2014 was generated by aggressive tax restructuring by taxpayers to take advantage of the Manufacturer's & Farmer's Credit (this re-structuring wave would also explain the dip in corporate income tax collections, and the large numbers of LLC, and LLP business entity creations reported by the Walker Administration). <br /><br />My position is that a good portion of the reduction is permanent and, more ominously, will increase as the M&F credit increases in 2015.<br /><br />The truth will start to be apparent as taxpayers begin to file their 2014 returns. If refunds are substantially reduced compared to the 2013 tax year, then the net collections will begin to even out. However, if refunds continue at levels even somewhat comparable to previous years, then the budget gap begins to resemble something out of Kansas, and a $3.5 billion dollar budget deficit for the next biennium is a clear possibility.<br /><br />Dr. MorbiusAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-3426800777521979578.post-38598359455217343642015-01-05T19:43:02.457-06:002015-01-05T19:43:02.457-06:00Too bad they can't do their "investigativ...Too bad they can't do their "investigative" reporting as news occurs rather than months after the fact . . . Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3426800777521979578.post-848310352937056852015-01-05T19:10:37.728-06:002015-01-05T19:10:37.728-06:00Dirty secret of the journalism business- most writ...Dirty secret of the journalism business- most writers are just trying to crank out their story, and don't have the time or knowledge to look into and mention these details. Unless the attention becomes so large that they have to be spurred into doing more investigation and discussion of the topic.<br /><br /> And beyond that, George Stanley and his bosses at JournalComm have a vested interest in keeping this on the down low, unless it starts costing them readers from their obvious bias and cover-ups. Doing more research and speaking out on this stuff (and letting them know we're onto them and will make them pay for negligence) keeps them from on the subject. Jake formerly of the LPhttps://www.blogger.com/profile/15660401299391001751noreply@blogger.comtag:blogger.com,1999:blog-3426800777521979578.post-14986662831105159652015-01-05T18:07:47.864-06:002015-01-05T18:07:47.864-06:00As always, thanks for the thorough analysis, Jake....As always, thanks for the thorough analysis, Jake. <br /><br />Now, if only the Milwaukee Journal Sentinel would expose Scott Walker's budget funny business for sham it is.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3426800777521979578.post-7013651926177824472015-01-05T17:59:23.904-06:002015-01-05T17:59:23.904-06:00Yes, we really enjoyed our pizza dinner.Yes, we really enjoyed our pizza dinner.Anonymousnoreply@blogger.com