In This Issue:
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1. Goodbye - Hello
2. The Many Faces of
Jim Doyle
3. Letter from the
Boss
4. International Man
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Goodbye Minimum Markup, Hello Oil Franchise Fee
Tuesday, Wisconsin Attorney General J.B. Van Hollen announced that he would not appeal a federal court decision declaring the state’s “minimum markup” law on gasoline to be unconstitutional. Last month, Federal Judge Rudolph Randa struck down the law, which generally required gas stations to mark up auto fuel by 9.18%.
Van Hollen’s decision not to appeal Randa’s ruling is an enormous victory for consumers, as it could lead to more competition and lower gas prices in Wisconsin. The law, which has been in place since the 1920’s, has cost consumers billions of dollars.
Late last year, the Wisconsin Policy Research Institute released a report estimating the minimum markup law cost consumers up to $278 million at the pump every year. With the state facing a recession, this is money that could be redirected back into the marketplace without costing the state government any money at all. Unfortunately, the victory for Wisconsin consumers will be short-lived, as Governor Doyle’s proposed $271 million “oil company franchise fee” is certain to be paid by consumers at the pump.
Doyle says he will prohibit oil companies from passing the cost of the new tax onto consumers in the form of higher gas prices, despite various legal opinions that such a prohibition is unconstitutional. Even Doyle’s own Department of Revenue doesn’t believe the State can prevent oil companies from raising prices to recover the new fee. If the administration does try to keep companies from raising gas prices to pay the tax, the state will likely end up in federal court again.
Consumers will lose either way. If the pass through provision is found unconstitutional, taxpayers will be forced to pay back the money plus 9% interest. If by some fluke the law is not overturned, oil companies may choose to reduce the amount of oil they supply to Wisconsin in favor of states where they make a larger profit. A significant reduction in supply will again result in higher prices for Wisconsin consumers.
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The Many Faces of Governor Doyle
With Governor Doyle proposing $2.2 billion in new taxes over the next two years, it causes one to wonder: Has Doyle ever made a promise he actually intended to keep, or has he simply counted on a deadbeat media and misinformed electorate?
Here are just a few of Doyle's broken promises:
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When running for Governor, Doyle specifically supported eliminating the “Frankenstein Veto,” saying governors shouldn’t be able to write their own laws merely by making the budget into a word puzzle. As governor, Doyle flipped completely and said he believed this authority was a necessary power for the executive.
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As a gubernatorial candidate in 2002, Doyle ripped Dane County Executive Kathleen Falk over her plan to release prisoners early, positioning himself as the “law and order” candidate. As governor, Doyle has proposed essentially what Falk sought to do - release nonviolent prisoners early to save money.
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Facing a budget deficit in 2003, Doyle strongly emphasized how important it was for the government not to raise taxes. His latest budget combined with the recently signed budget “repair” bill, raises taxes by $2.2 billion. Doyle also has repeatedly warned of the dangers of using budget tricks and one time money to balance the budget, then gone on and done exactly what he’s warned against in record numbers.
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As Attorney General, Doyle supported the ability of the Department of Natural Resources Board to pick the secretary of the DNR – now, as governor, he thinks the governor should pick the secretary.
- In past budgets, Doyle has proposed linking the quality of day care centers to the amount of state funds they receive. In this budget, however, he proposes regulating day care centers, but doesn’t include the financial incentives for the centers to improve.
Several of Doyle’s flip-flops have serious consequences. Raising taxes by $2.2 billion in a recession is cyanide for the economy. With unemployment soaring above 7.6% in the state, employers won’t have the funds on hand to continue to employ workers, which almost certainly will keep people out of their jobs for longer periods.
But even worse is Doyle’s proposal to let 2,500 criminals out of prison, a proposal Doyle roundly criticized when trying to with the governorship in 2002.
Last week Milwaukee Sheriff David Clarke held a press conference where he discussed the danger inherent in Doyle’s early release plan.
Governor Jim Doyle wants to once again play Russian roulette with the safety and security of our seniors, women and children who are disproportionately the ones most affected by fear, violence and disorder. Statistically the people who will pay the highest price in the form of injury, death and emotional trauma in the form of fear will be Milwaukee’s minority community, because that is where the majority of these criminal perpetrators will return.
For them to propose this dangerous experiment shows how out-of-touch they are with the reality of criminal behavior. For the governor to make policy decisions on public safety, solely for budgetary purposes is reckless, irresponsible and an abdication of his most elementary responsibility--that being to secure the personal safety of citizens. Studies and research show that states with lenient sentencing and corrections policies have higher rates of recidivism. The numbers don’t lie. This budgetary proposal does...
I’m sick and tired of the word game being played by the governor and other criminal sympathizers where they use the term “non-violent” to refer to the prison population that he wants to release early. I’m here to tell you that there are very few “non-violent” people in the state prison system. It’s not where we send all law violators; it’s where we send the worst of the worst. U.S. Department of Justice figures show that well over half of those currently in prison are there for violent crimes, and many are repeat offenders and habitual felons.
Doyle’s budget has a lot not to like. But letting criminals out of prison, while finding $500 million for his buddies in the teachers’ union is simply unconsionable.
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Letter from the Boss
(Hat Tip to Ken Wendt)
As the CFO of this business that employs 140 people, I have resigned myself to the fact that Barrack Obama is our President, and that our taxes and government fees will increase in a BIG way. To compensate for these increases, I figure that the Clients will have to see an increase in our fees to them of about 8% but since we cannot increase our fees right now due to the dismal state of our economy, we will have to lay off six of our employees instead. This has really been eating at me for a while, as we believe we are family here and I didn't know how to choose who will have to go.
So, this is what I did: I strolled through our parking lot and found 8 Obama bumper stickers on our employees' cars and have decided these folks will be the first to be laid off. I can't think of a more fair way to approach this problem. These folks wanted change; I gave it to them. If you have a better idea, let me know.
Sincerely,
The Boss
International Man of Miscalculation
In April of 2008, the State of Wisconsin announced it was facing a $525 million deficit, and the trial of Tony Rezko was going on – both of which adversely affected Governor Doyle. Naturally, Doyle flew overseas for a “trade mission,” which apparently didn’t do much to keep our state’s economy from tanking. At the time, Club for Growth noted Doyle’s propensity for skipping town when things get rough:
This week, Doyle announced he would be heading to Ireland and the UK, leaving budget negotiations behind. This will be Doyle's sixth "trade mission" since 2003, but the only thing Doyle is likely to "trade" is a budget headache for a nice cold pint of Guinness. The state revenue generated by Doyle's previous trade missions seems to have gotten lost somewhere in the couch cushions at the Governor's mansion.
Our illustrious Governor has a knack for fleeing the country when he sees trouble brewing. When Doyle Administration staffer Georgia Thompson was indicted for allegedly rigging a state travel contract to benefit one of Doyle's biggest contributors, Doyle sought refuge in Baghdad. Apparently he thought it would easier to dodge suicide bombers than members of the Capitol press corps.
Last September when the state budget was months overdue and a deadline for setting state aid to local school districts was looming, Doyle fled the country, this time taking his entourage on a 12 day trade mission to China and Japan. Before abandoning budget negotiations at home to down saki with Japanese officials, he threatened a government shutdown if legislators didn't come to an agreement. The impact of Doyle's Asia trip is still unknown.
Perhaps the timing of Doyle's upcoming trip to Ireland can be explained by the ongoing trial of racketeer and Doyle pal, Tony Rezko. Doyle and Rezko dined together before sharing a luxury box at a Packers-Bears game at Soldier Field. Last week, testimony in the Rezko trial turned to Wisconsin and the man who introduced Doyle to Rezko. It is unclear whether Doyle is leaving town to escape the budget mess he created or to elude embarrassing questions about his ties to Tony Rezko. The one thing we know for sure is when the going gets tough, Governor Doyle skips town.
And, on February 17th of 2009, Doyle delivered his budget address, unveiling $2.2 billion in proposed new taxes. A few days later, Doyle hopped on a plane to Spain, supposedly to check out their high speed rail system. The well planned trip allowed the Governor to dodge questions and criticisms about his budget that frees criminals, creates an enormous deficit, and raises taxes by billions of dollars in a flailing economy.
So mark your calendar – the next time Doyle drops a bomb on Wisconsin, he’s probably packed his bags and will be heading out of town. That is unless voters run him out of town first.
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