Wisconsin Congressman Paul Ryan, the ranking Republican on the House Budget Committee is calling for significant reform in tax, monetary and entitlement policies. Ryan characterizes President Obama’s federal budget as taxing "work, savings, investment, capital and risk-taking far more than we are today" and "hurting our chances of coming out of this recession robustly."

Ryan spoke with the Manager of Media Relations for the nonpartisan Tax Foundation in Washington D.C. about his reform ideas.

Listen to the Tax Foundation podcast with Congressman Ryan

During 1919, Wisconsin became one of the first states to enact a minimum wage.  It was 22 cents per hour.  Today, the minimum wage is $6.50.  This week, Senate Democrats voted to increase the minimum wage to $7.60 by June of this year, and to index it to inflation every year thereafter.  It is only fair; they say poor families are losing ground to inflation.

Well, let us take a look.  During 1919, our minimum wage was 22 cents per hour.  Adjusted for inflation, according to the bureau of labor statistics, that today would be $2.70.  Today’s actual minimum wage is over twice that amount.

During 1956, the minimum wage was increased to 70 cents per hour.  Indexed to inflation, that would be $5.47 today.  During 1989, the wage became $3.65; today, that would be $6.25.  Again, growth in the minimum wage outstripped inflation.

Moreover, it is still outstripping inflation.  June 1, 2005, Wisconsin’s minimum wage went from $5.15 to $5.70, nearly an 11% increase.   June 1, 2006, one year later, it was increased another 14%, to $6.50.

This latest increase, if it becomes law, will be another 16.9% increase.  That will be a 47.6% increase just since 2005.  Inflation has not been anywhere close to that increase.

Clearly, this is not about lifting people out of poverty, or keeping up with inflation as proponents say.  It is about power, government power, and the power to take money from one person, and give it to another person.  To stick government fingers deeper and deeper into other people’s pies, and set the stage for even more government power by pitting groups of citizens against each other.

Proponents of increasing the minimum wage hope to convince us that the government must act, and act big, to save us all.

It is likely we will see that strategy replayed repeatedly during this session of the Wisconsin Legislature.  To save us all from the rising cost of health care, Democrats are already pursuing policies that will force increases in the cost of health insurance.  As those costs rise, more people will be unable to afford health care, and government health care will be the only answer!

To save us from a bad economy, Democrats will spend billions upon billions of our dollars and create a lot of debt burdening us, our children and grandchildren, and convince us that government action alone saved us from the recession!  Never mind that their own government policies of high taxes, constant regulation, and a new bureaucracy for every problem create a bad economic environment and prevent businesses from using their dollars to build business and add jobs in our state and in our country.

The irony is, if lawmakers during 1919 had been able to see the path they were starting with their 22-cent minimum wage, they likely would not have done it.

I blogged that the federal stimulus package being considered by Congress will not solve budget problems being encountered in all states, including Wisconsin.

Governor Doyle in his State of the State address said the stimulus package would not solve Wisconsin’s budget deficit. The Wisconsin State Journal writes the stimulus could make our budget problems even worse. The newspaper writes:

“The federal largesse — up to $4 billion or more for Wisconsin alone — carries the potential of leaving the state budget worse off in the future if the economy doesn't recover and lawmakers don't do a better job than they have in the past of making sure the state lives within its means.”

You can read the entire State Journal piece here.

Today on the floor of the state Senate, I voted against an increase in Wisconsin’s minimum wage. 

The timing of the proposal is horrible given our recession.  A new survey shows 25 percent of American companies are planning a salary freeze. Residents across Wisconsin are accepting pay cuts just to preserve the jobs they have. The state Senate wants to impose a salary hike on Wisconsin businesses that will kill jobs and hurt businesses.

I received several communications from a constituent very concerned about the impact on camps. The constituent correctly points out that the minimum wage increase bill contains a 24 percent increase for minor staff and an 11 percent increase for adult staff at camps.  The increases that would go into effect this June would create an immediate $10,000 shortfall at the constituent’s camp.  Camp directors do not want to see themselves put in the terrible position of contributing to increasing the unemployment numbers. 

Because this bill will create layoffs, kill jobs, and raise unemployment at the worst possible time in our state and national economies, I voted against the minimum wage increase on the floor of the state Senate today.