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OPINION: Hair dye and tax breaks won't cut it(Wisconsin State Journal, The (KRT) Via Thomson Dialog NewsEdge) Sep. 9--Assembly Speaker Mike Huebsch says he's worried about "gray drain," the flight of retirees out of Wisconsin. The Republican leader from West Salem says too many talented older folks with money are fleeing Wisconsin 's high taxes. That's why Assembly Republicans continue to dish out showy yet small tax breaks on retirement income, often with support from Democratic Gov. Jim Doyle. It helps explain why Assembly Republicans are so bent on controlling property and income taxes that pay for local governments, public schools, universities and tech colleges. And virtually every politician in the state is now a champion of the SeniorCare prescription drug benefit, which Senate Democrats spearheaded. It's all smart politics because old people tend to vote, and young people don't. To some degree, Huebsch is right about "gray drain. " The Wisconsin Taxpayer 's Alliance last year analyzed migration into and out of Wisconsin over five years. A net loss of 8,000 people ages 55 to 79 left the state. That 's less than 1 percent. Yet this group took with them a lot of household net worth and income. Some are leaving to avoid cold winters. Not even Al Gore's worst global-warming scenario is about to change that. Other retirees are leaving to save money on taxes, as Huebsch says. This is especially true of the very wealthy retirees who move to states such as Florida to avoid capital gains taxes -- something Huebsch's state budget plan doesn 't address. But "gray drain" is hardly the overarching, long-term problem facing Wisconsin. The real issue is dramatic "gray gain" -- not from migration, but from older people living longer. At the same time, young people in their 20s leave Wisconsin at three times the rate of retirees. Add lower birth rates to the equation, and the percentage of working-age people is falling. The Wisconsin Taxpayer's Alliance released a new breakdown late last week of how Wisconsin's population is projected to grow between 2000 and 2030. Our population should increase by about 787,000 people, to 6.1 million. Almost all age groups under 45 are expected to shrink or stay the same. But those who are 45-64 will increase in population by nearly 300,000 -- a 25 percent hike. Those who are 65 and older will increase by more than 600,000 -- an 87 percent surge. That means the median age in Wisconsin would rise from 36 to 42 years old. "We 're on the wrong side of demography," says Todd Berry, president of the Wisconsin Taxpayer 's Alliance. Berry predicts Wisconsin's labor force will start to shrink in the next four to six years. And those workers will face higher demand for tax dollars to pay for social services related to the growing elderly population. "I'm trying to focus on the big picture -- the labor force and everything that goes with them, " Berry said Friday. "If we don't have enough of them, there isn't going to be money for the retirees, for the schools or for anything." That means Wisconsin needs more attention to producing, keeping and attracting skilled and educated workers as well as good-paying jobs. We need a broad tax system with fewer exemptions, credits and deductions. That could eventually lead to lower tax rates. More children need to graduate from high school, especially in Milwaukee. Parents need more options, such as charter schools, to keep them here. Universities and technical colleges should be priorities, not whipping boys. We're graying fast, Wisconsin. Hair dye and pandering to older voters won 't cut it. Milfred is editorial page editor for the State Journal; [email protected] or (608) 252-6110. To see more of The Wisconsin State Journal, or to subscribe to the newspaper, go to http://www.wisconsinstatejournal.com. Copyright (c) 2007, The Wisconsin State Journal Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. |