Global Concerns, Leadership, Messaging, Views on News • June 10th, 2009

Budget blues

by Chris Lato

Once again, I waited far too long between posts – keeping very busy on the business side, which is always a good thing.

But reading today’s Journal Sentinel inspired/disheartened me.

The following comes directly from the article:

Both houses agree on taxing oil company revenue, but they differ on how to structure the tax. Doyle and Senate Democrats want to bar the oil companies from passing the tax on at the pump, but the oil industry is threatening to sue over that provision on the ground that it would violate constitutional protections on commerce.

Some Assembly Democrats said they didn’t want to wind up paying interest and legal fees on a case they were likely to lose. (emphasis added)

Wait what?

So, the Legislature and governor want to enact a tax that they know will get them sued, and some legislators even admit they will likely lose in court…but they still want to go ahead and run up a taxpayer tab.  Just how big is that state deficit again?

So, what is this, other than a feel-good shell game? (Get it? ‘Shell’ game!) I guess we’re expected to take comfort from the knowledge that Wisconsin is trying to punish Big Bad Oil, no matter how fruitless and expensive.

And, if we actually did win a lawsuit, it would mean higher prices at the gas pumps. Assuming this actually survived a legal challenge, does anyone honestly believe the cost to oil companies somehow wouldn’t be passed along to us? In the meantime, I wonder which law firms will benefit from the suit…

Another bit from the article that caught my eye:

The state budget faces a record $6.6 billion shortfall over two years. To close that gap, Democrats plan to cut state agencies and aid to local governments, spend federal economic stimulus cash and raise taxes and fees by about $1 billion a year. (emphasis added)

The budget is still in flux right now and the amount of that hike may well change. Still, just a little something to keep in mind next year when politicians are out looking for your vote, and they claim to be fiscally conservative types who oppose tax and fee increases - as they have been known to claim whether it’s true or not.

Give ‘em a little truth test - ask for detail on how they voted on the budget back in ’09.

No Comments »

Views on News, wispundits • February 19th, 2009

Raiding the penny jar

by Chris Lato

Interesting. Gov. Doyle is proposing to get rid of the state’s film tax credit program.

Gov. Doyle may be stinging from the criticism of the tax credits, which brought the upcoming Christian Bale/Johnny Depp flick “Public Enemies” to Wisconsin for filming in 2008. After all, critics - including the state Commerce Department - questioned whether the big tax breaks were worth the resulting economic bump.

Doyle may also be smacking his lite guv down a notch after Barbara Lawton after she stepped into the limelight with very vocal public support of the film tax credits.  

more »

Comment (1) »

Strategic Blueprints, Views on News • December 8th, 2008

The game changer

by Chris Lato

It didn’t take long for some on the left to become disillusioned with President-elect Obama’s early policy shifts and Cabinet appointments (and for Team Obama to start pushing back).

A certain degree of this is to be expected. With Democrats making a clean sweep at the federal (and, in Wisconsin, state levels), plenty of Dems think now is the time to make the big, bold moves that couldn’t be done until now. Universal health care, pulling out of Iraq ASAP, and higher taxes, particularly aimed at businesses, to cite three examples.

more »

No Comments »

Leadership, Messaging, Strategic Blueprints, Views on News, wispundits • November 13th, 2008

Let the turf war begin

by Chris Lato

Interesting stuff...the first real sign that as Democrats take over the Legislature, it’s still going to be a bumpy ride.

Locking Milwaukee lawmakers out of leadership roles sends a message, suggesting that it will be a Milwaukee vs. the-rest-of-Wisconsin session as the new majority grapples with a multi-billion-dollar budget hole.  

The Assembly Speaker will be Mike Sheridan, a rep from Janesville who used to be a UAW president. Other Dem Assembly leaders come from Kaukauna and Wausau.

more »

Comment (1) »

Leadership, Messaging, Speeches, Views on News • September 18th, 2008

Patriotism through higher taxes

by Chris Lato

Joe Biden’s record as a veritable gaffe machine is well-documented by independent reports, but a comment he made this week is not so much a gaffe as it is a telling example of the mindset that will be a deciding factor in this election.

In a story that I had to read at least twice to make sure it was ‘reporting’ and not an opinion piece criticizing John McCain, the AP says Biden calls paying higher taxes ‘patriotic.’ He was referring to the tax hikes President Obama would seek against high-level earners.

The idea of redistributing wealth, which Biden is endorsing with his comments, is the kind of notion that makes fiscal conservatives nuts – the ‘bigger government knows best’ ideology that stands in stark contrast to McCain’s record and positions. For Obama/Biden, the thinking is that economic class warfare will resonate with those who are not among the richest in the nation.

more »

No Comments »

2008 Primaries, Views on News • September 17th, 2008

The iPod tax is back

by Chris Lato

Uh-oh. New taxes could be coming your way in Wisconsin…including the dreaded iPod tax.

With the election less than two months away, the timing on this proposal is interesting. With the state Senate expected to stay in Democratic hands, and the Assembly believed by some to be up for grabs, the thinking is that a Democrat-controlled Legislature, coupled with a Democrat governor, would embrace this list of proposals from the Department of Revenue.

Could this be a game changer in some legislative races? It certainly should be a hot topic on the campaign trail in these final few weeks. Republicans and fiscally-conservative Democrats would be wise to seize this issue as just one example of how important the upcoming elections are.

Those who support these taxes may be asked why they would seek tax hikes when the Wisconsin economy and families are already struggling to make ends meet.

Now, a lot can happen in the next few months. Let’s say Republicans hold onto the Assembly. Or, Barack Obama becomes our next president, and Gov. Doyle leaves Wisconsin for a job in the Obama administration. Barbara Lawton ascends to the throne, and she is thought to be more liberal on tax-and-spend policy.

Or, Congress refuses to act on these Internet-tax proposals.

Those are a lot of ‘what-if’ scenarios. These tax hikes wouldn’t go into effect tomorrow. But by the same token, these ideas aren’t going away and it’s a worthy issue for voters to consider before November 4.

No Comments »

2008 Primaries, Strategic Blueprints, Views on News • September 5th, 2008

A taxing question in Milwaukee County

by Chris Lato

This November 4, voters in Milwaukee County will have their say on whether the county should triple the county sales tax to 1.5% ‘to fund parks, transit and provide property tax relief.’ Hmmm……

This article lays out the issue. Essentially, County Executive Scott Walker fought the tax idea but was outgunned by the County Board. Walker has positioned himself as a fiscal conservative, and there’s no way he could be seen as endorsing this tax hike. He was criticized by some for ‘denying the voters a choice.’

(BTW - maybe I’m crazy, but in the middle of an economic downturn, does a sales tax hike really have a snowball’s chance in H-E-double-hockey-sticks of actually getting voter approval?)

We all know the economy is going to be one of the driving issues this November. The voters will now get their say and the tax referendum will be a red-hot issue. It will likely drive turnout even higher than already-high expectations.

And that has the potential to benefit John McCain.

With a tax hike referendum on the ballot, there will undoubtedly be voters spurred to go to the polls to defeat this referendum. And, since McCain is positioned as the tax-cutter compared to Barack Obama, the perceived tax-hiker, can McCain enjoy some boost in Wisconsin’s biggest county? For those voters who are compelled to vote based on their frustration over high taxes alone, the tax referendum could ding Obama’s vote tally in Milwaukee County.

If McCain’s team moves taxes right to the top of the issues being discussed in that county, and bundles it up with the tax referendum issue, then that offers one way to move numbers in their direction.

As an aside, McCain and running mate Sarah Palin are in Wisconsin this morning, the night after McCain delivered his convention-closing speech at the RNC. It’s fun to be a state in play, isn’t it?

As for McCain’s speech, I spent a chunk of it feeling underwhelmed. A lot of the address sounded like GOP boilerplate, and the efforts to single out American families that McCain would be ‘fighting for’ felt ham-fisted. No home runs, but no errors either. Safe and middle of the road, for the most part.

But as McCain discussed his life experience and his time as a POW, the speech really took hold. For those who were getting a sense of McCain for the first time, the closing minutes of the speech drew a connection between the man and the candidate, painting an affecting portrait of why he is in this race.

No Comments »

Leadership, Views on News, public relations • June 27th, 2008

Surveying the landscape

by Chris Lato

The weekend is almost here, and my short attention span won’t allow me to focus on any one topic – a few things grabbed my attention this morning.

First, were you listening to Wisconsin Public Radio at 8 this morning? If not, shame on you. Catch the Week in Review in the archives here. Thanks to Joy Cardin, her staff and Matt Rothschild for a fun and enlightening hour.

Next….is there any doubt that Scott Walker is going to veto this thing? It’s the tax idea that simply won’t die in Milwaukee County- and great timing to boot, what with the economy and all. more »

No Comments »

Leadership, Promotions, Strategic Blueprints • March 25th, 2008

Bucks for the Bucks?

by Chris Lato

So the Bradley Center is among the oldest facilities in the NBA, and the Bucks are worse than bad this season.

So what’s the solution? Build a new arena with taxpayer dollars, of course!

Steve Jagler sounds off on the issue and comments on how the powers-that-be refuse to play nice in coming up with a cohesive plan for downtown Milwaukee. It’s a shame, because it sounds like the potential is there if everyone could just get along.

I’m not going to claim to be some expert on sports (and if I did, those who know me well would call me out on it and embarrass me terribly), but here’s my take on new stadiums for teams. This will sound simplistic but it makes perfect sense to me.

If you’re winning, let’s talk. If you’re losing, go away until you’ve shown a commitment to winning. Then, let’s talk.

The Packers did things the right way. The Brewers, not so much – although last year was incredible. Unfortunately, the wheels fell off the Brewers’ season but it showed that Milwaukee can and will support a pro baseball team that has at least a reasonable shot at success.

But initially, things were a bit rough for Miller Park after the shiny new ballpark goodness wore off. Once a better team started taking the field, interest spiked once again.

A winning team puts butts in the seats. Go figure!

As for the Bucks, well, this season has been an unmitigated disaster. Talk about building a new arena has been churning out there for a while, but who’s going to want to back this loser team?

Playing devil’s advocate for a moment, perhaps the last best way to sell the idea of a new arena under these grim circumstances is to find a way to unite the various forces controlling downtown Milwaukee, design a state-of the art arena that will attract top-shelf live shows year-round, sell the economic benefits to the many skeptics who will control the purse strings, and systematically make the case that this will be a long-term jewel in the city’s crown. All marketing and positioning should seek to strike a balance: the big-city feel of a beautiful new arena with an intimate community connection.

Also, the Brewers have done a fantastic marketing job, making going to the ballpark fun even when the team is tanking. The Bucks need to find a way to capture some of that magic in their marketing and promotions.

This is a lot of work. It would not be easy.

The way NOT to sell the notion of a new arena is to threaten for the Bucks to pull up stakes and move out of Milwaukee. The lingering resentment surrounding mega-rich owner Herb Kohl will only intensify if those who will be asked to foot the bill feel like they’re being steamrolled on behalf of a wealthy owner throwing a tantrum.

But again, let’s see some winning first. A spoonful of sugar helps the medicine go down - and will put some smiles on the faces of those who will be asked to pony up later.

No Comments »