wisconsin capitol
Press Release
July 11, 2010

Budget Deficit Grows, Walker Still Refuses to Say How He’ll Pay for Tax Cuts, Shifts

New $2.5 Billion State Deficit, Same Old Walker Dodge on Specifics to Finance Tax Cuts for Rich, Big Business

MADISON, Wis. — Milwaukee County Executive Scott Walker still refuses to say how he will finance a budget-busting $3-billion tax cut and shift scheme that would slash funds from education, health care, and police and fire protection “¢ even after the non-partisan Legislative Fiscal Bureau says the state deficit is an even-larger $2.5 billion for the next biennium.

“Scott Walker flat-out refuses to say how he will pay for $3 billion in tax cuts and shifts that will destroy education, health care and yank police and firefighters off our streets,” said Scot Ross, One Wisconsin Now Executive Director. “He owes us an explanation, once and for all, what are his $5.5 billion in cuts and until he does, he has zero credibility.”

Walker has said he will uniformly cut state pensions of working families, something he would be unable to do under current law. A recent news report also showed Walker’s claim about savings was overstated by at least 15 percent “¢ and that at most he could save would be $150 million, a fraction of the total needed to pay for Walker’s budget schemes. Walker’s latest gimmick “¢ saving money from 4,000 currently unfilled state positions “¢ would generate no net savings. [Milwaukee Journal Sentinel, 7/10/10]

As has been true throughout his campaign for governor, Walker refused to provide any specifics on what he would cut to pay for his proposed tax cuts and shifts, including:

  • Slash income taxes for the top one percent of income earners who make more than $225,000 a year “¢ two-year budget cost: $287 million.
  • Reopen the “Las Vegas Loophole” which allows Wisconsin businesses to shelter their tax obligations to Wisconsin families through phantom “offices” in states without corporate income tax “¢ two-year budget cost: $375 million.
  • Repeal changes made to the capital gains tax deduction, despite the fact 70 percent of capital gains filings are from those earning more than $200,000 a year “¢ two-year budget cost: $243 million.
  • Shelter the assets of the wealthiest Wisconsinites even more by a radical end to tax paid on retirement income, regardless of income “¢ two-year budget cost: $920 million. [Legislative Fiscal Bureau, 2/23/09, 7/8/09, 1/25/10; “Upfront,” WISN-TV, 11/8/09; La Crosse Tribune, 11/24/09]
  • Shift tax revenue from new car sales into the transportation fund “¢ two-year budget cost: $1 billion. [Wisconsin State Journal, 6/20/10; Legislative Fiscal Bureau]

“Scott Walker is a fraud when it comes to fiscal responsibility,” said Ross. “He voted for five straight budgets that grew state spending 84 percent and proposed 35 percent in spending increases as county executive.”

For more information on Walker’s record of failure in Milwaukee County, visit: www.ScottWalkerFailureFiles.com.

# # #

One Wisconsin Now is a statewide communications network specializing in effective earned media and online organizing to advance progressive leadership and values.

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