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February 27, 2008

Wednesday Update


Wisconsin Club for Growth 

February 27, 2008
Volume 2, Number 9

The Wednesday Update 

In This Issue

1. Fleecing The
   Taxpayers
 

2. We're On the Air!

3. Storm Warning


4. Virtual Insanity


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Fleecing The Taxpayers


Since the Wisconsin Club for Growth exposed their covert attempt to damage the Supreme Court candidacy of Judge Mike Gableman, the Wisconsin State Bar has come under more scrutiny. Not only has the State Bar been exposed as a partisan lobbying organization, it is also in the business of advocating for new rules and laws to fleece Wisconsin residents of their money.

For instance, in June of 2007, the State Bar proposed a new Supreme Court rule that would broaden the definition of what constitutes the "practice of law" in Wisconsin.  Essentially, the new rule would require individuals to hire an attorney for a host of transactions where no lawyer is currently necessary.  Thus, it would increase costs on Wisconsin residents solely to fatten the wallets of the State Bar's members.

In fact, the State Bar's proposal is so brazen, it has been slammed by the U.S. Department of Justice for its attempt to eliminate marketplace competition for lawyers.  A DOJ memo by Assistant Attorney General Thomas O. Barnett says the proposed definition would "bar non-lawyers from competing with lawyers for a range of services and could unnecessarily increase the prices paid by Wisconsinites for those services," and that "the broad, general definition proposed by the petition therefore would likely force Wisconsinites to hire a lawyer to provide a host of services where legal expertise should not be necessary."  Those services include real estate transactions, tax preparation transactions, and advice given to employers with regard to immigration, sexual harassment, labor laws, and safety regulations.

Not content to stick it to Wisconsin's citizens, the State Bar also proposed assessing a new "multi-jurisdictional" fee of $250 to attorneys licensed in other states who offer legal services in Wisconsin.  The fee not only would be passed on to the consumer, but would go directly to the State Bar's slush fund, which sends money to organizations such as the ACLU.  The fee proposal was recently dropped.

Ironically, while the State Bar thinks of new ways to suck the blood out of Wisconsin citizens, they have been calling for more taxpayer funds to make sure more poor people have "access to justice."  In the most recent budget, the State Bar lobbied for $1 million in taxpayer funding so poor people could hire lawyers for low-level legal transactions.  Thus, the graft is complete: Require lawyers for every conceivable transaction then lobby the Legislature to have the taxpayers pay for it.

Since the proposed "practice of law definition" rule is in the hands of the current Supreme Court, there's no question which person is the preferred candidate for those who stand to benefit from enactment of the rule.  That would be the incumbent Justice Louis Butler, who plays a role in the rule's approval.  In fact, records show that the very day the State Bar forwarded the proposed rule on to Butler and his colleagues, the Butler campaign received $11,945.00 in contributions, almost all of which came from prominent attorneys.

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Club for Growth on the Air!

The Wisconsin Club for Growth has begun airing a television ad that highlights Judge Gableman's record of keeping Wisconsin's families safe.  Not only does violent crime affect the victims, it affects our entire community.  Studies have shown that crime constrains economic growth in two ways. By imposing direct and indirect costs on firms it reduces profits, deters investment and increases business failures. And, the perception of high levels of uncontrolled violent crime restricts work and leisure activities, restrains investment and reduces tourism.

For more information on the economic effects of crime, you can visit the Club for Growth page here.

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Tax Storm on the Horizon

With news of a $652 million state budget shortfall, Wisconsin Democrats have again been advocating for a new tax on hospitals to make up the deficit.  Democrats argue that the revenue brought in by a hospital tax can be matched by federal funds, which will help fill the deficit.  Not surprisingly the Milwaukee Journal Sentinel editorialized in favor of the scheme.

Under the plan, taxes on hospitals would go up by $400 million, while matching federal revenues would bring in an extra $400 million, for a total of $800 million.  Of course, the new $400 million tax would be passed on to consumers, making health care costs more expensive.  Naturally, Democrats will still claim they want to keep health care costs down, while maintaining a straight face.

What is most troubling, however, is that Republicans seem to be warming to the idea.  This week on Wisconsin Public Television's "Here and Now" program, Republican Joint Finance Committee member Jeff Stone kept the door to the tax wide open, saying he's giving the plan "serious consideration." Perhaps the legislature could cut spending instead. Here are just a few ideas for starters.


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Virtual Insanity

Just hours before the State Senate was to vote on a compromise bill that allowed groundbreaking virtual schools to continue operating in Wisconsin, Governor Jim Doyle announced his intention to veto the bill unless it contained a total cap on virtual school students in the state.  Doyle's announcement shattered a bipartisan agreement that had been in place for weeks.

Enrollment caps on virtual schools are essentially penalties for doing well.  If virtual schools succeed and more students want to utilize them, these kids will be locked out of that option - solely because Jim Doyle needed to pay back his friends at the teachers' union, who generally oppose innovation in education.

Wisconsin Policy Research contributor Deb Jordahl recently reminded virtual school families about the three year battle to lift the enrollment caps on Milwaukee's Parental School Choice Program. 

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