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Posted: 8:41 a.m. Tuesday, July 5, 2011

Some refreshing government news 

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By Neal Boortz

Perhaps Democrats in Minnesota could learn a lesson from states like Ohio and Wisconsin.  Let’s start in Wisconsin.  Democrats and union members battled for months against Gov. Scott Walker’s bill to curtail the collective bargaining powers of some government employees.  How is that working out for Wisconsin?

The Kaukauna School District, in the Fox River Valley of Wisconsin near Appleton, has about 4,200 students and about 400 employees. It has struggled in recent times and this year faced a deficit of $400,000. But after the law went into effect, at 12:01 a.m. Wednesday, school officials put in place new policies they estimate will turn that $400,000 deficit into a $1.5 million surplus. And it's all because of the very provisions that union leaders predicted would be disastrous.

In the past, teachers and other staff at Kaukauna were required to pay 10 percent of the cost of their health insurance coverage and none of their pension costs. Now, they'll pay 12.6 percent of the cost of their coverage (still well below rates in much of the private sector) and also contribute 5.8 percent of salary to their pensions. The changes will save the school board an estimated $1.2 million this year, according to board President Todd Arnoldussen.

Amazing how that happens, ain’t it?  Now let’s take a look at Ohio, where Republican Governor John Kasich has apparently managed to get rid of an $8 billion deficit without raising taxes.  What is part of his strategy?  Lowering taxes!  A 2008 study by the Connecticut Department of Revenue Services found that states without an estate tax grew 50% faster, and created nearly twice as many jobs, than states with death taxes.  It was also named as the primary reason why wealthy residents’ left the state.  Another study by Duquesne University study found: “State and local governments lost some $3 in non-estate tax revenues for every $1 increase in federal estate tax revenue. Overall, the study calculated, eliminating the federal estate tax would boost state and local tax revenues by approximately $9.3 billion annually.”

So keeping this in mind, Kasich has abolished Ohio’s estate tax starting January 1, 2013.  We will see how businesses and wealthy Ohio residents respond, but the research shows that this is a positive move for residents and the government.

Neal Boortz

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Neal Boortz chronicles his 42 years of talk radio in his book "Maybe I Should Just Shut Up and Go Away" Available on line and printed from Barnes and Noble and Amazon.

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