One of the things that has gone unnoticed during the Wisconsin troubles is this piece of legislation that passed:
Madison – Today, Governor Scott Walker signed Special Session Assembly Bill 5 which requires a 2/3s vote to pass tax rate increases on the income, sales or franchise taxes.
“I went to work today, met with my cabinet, and signed legislation that will help government operate within its means,” Governor Scott Walker said. “Wisconsinites can’t turn to raising taxes to balance their own family budgets when times get tough. This bill will ensure that we don’t kick the can down the road for a quick budget fix only to slap a long-term tax hike on the backs of Wisconsin taxpayers. I thank Senator Leah Vukmir and Representative Tyler August for their leadership on this issue.”
In California, an amendment similar to this was approved by referendum, and has crippled the revenue collection of an otherwise wealthy state. While Wisconsin won’t need to re-amend its constitution to get rid of this insanity, as long as this law is in place, it will cripple the state’s ability to raise taxes if needed, forcing more cuts.
Wisconsin: on the path that California blazed to fiscal stability. Erm…