Rebuilding Wisconsin’s Economy NOW
September 16, 2009
Jobs Tax Credit NOW (Williams)
FACT:
Wisconsin needs jobs now. The Department of Workforce Development tells us that Wisconsin has lost 134,000 jobs over the last year. Unemployment is at a staggering 9 percent in the state.
PROBLEM:
The Jobs Tax Credit doesn’t go in effect until next year and cannot be claimed until 2012. Wisconsin’s economy and labor force are suffering and cannot wait until 2012 for relief.
SOLUTION:
Assembly Republicans would give employers a financial incentive to hire employees, through the Jobs Tax Credit, in 2009. Our economy, and as a result our state budget situation, will be net winners with this economic development tool in place NOW. Rep. Mary Williams authored this as a budget amendment (AA 1 to ASA 1 to AB 75), but Assembly Democrats voted in lockstep to table it.
Recruit & Retain Jobs NOW (Budget Motion & LRB-3431; Rhoades)
FACT:
Wisconsin is losing jobs to other states, not just other countries.
PROBLEM:
Sheboygan lost Thomas Products jobs to Louisiana, Jefferson and Watertown lost Briggs & Stratton jobs to Georgia, Janesville lost General Motors jobs to Michigan, and the list goes on.
SOLUTION:
Assembly Republicans would require Wisconsin’s Department of Commerce to submit a report to the Joint Finance Committee detailing its business retention methods, a plan identifying businesses seeking to expand or relocate, and develop a Rapid Response Team for relocation or expansion prospects. Rep. Vos, on behalf of Rep. Rhoades, authored this as a budget motion in JFC, where it passed 16-0. From then on, every dversion of the budget contained this provision except the final…Gov. Doyle vetoed it.
Banning Secret Tax Increases (Zipperer)
FACT:
The Department of Revenue (DOR) has unilaterally increased the tax burden in Wisconsin by over $100 million over the years without legislative approval.
PROBLEM:
We all learned in elementary school civics class that the legislative branch has the power to tax, but Wisconsin’s executive branch has assumed that power, too. DOR has imposed new taxes or creatively interpreted current tax laws in very imaginative ways. Internet access, computer software, temporary service agencies, business transfers, and others have all been subject to DOR’s self-appointed power of new taxation.
SOLUTION:
Assembly Republicans would restore legislative accountability and protect families and employers from this bureaucratic overreach by banning this practice all together.
Small Business Expense Flexibility NOW (AB 184; Roth)
FACT:
Small business owners would be in a better position to hire additional employees if they could claim an immediate deduction on the purchase of equipment needed to run their business. Small business will be the catalyst to jumpstart our state and national economies.
PROBLEM:
Currently, Wisconsin only allows employers to claim depreciation on purchased equipment over 5-7 years. The Small Business Expense Flexibility Act (AB 184) would address this problem, but it has sat in the Assembly Committee on Jobs, the Economy and Small Business since 4/2/09 where it received a public hearing 4 months ago but no committee vote.
SOLUTION:
Assembly Republicans would increase the expense deduction limit to $50,000 (up from the current $25,000) to more closely mirror the federal tax code. Putting more money in the hands of small business employers in a quicker manner will allow them the ability to hire more employees.
Wisconsin Jobs Investment Act NOW (AB 38; Strachota)
FACT:
Today, Wisconsin investors have no incentive to reinvest their assets in Wisconsin.
PROBLEM:
Wisconsin ranks as the 9th worst state in which to do business, and one of the reasons is our poor ranking in access to capital. The Wisconsin Jobs Investment Act (AB 38) would address this problem, but it has sat in the Assembly Committee on Jobs, the Economy and Small Business since 2/12/09 where it has not even received a public hearing. A similar provision in the budget would first apply in 2011, but our unemployed labor force cannot wait until 2011 for start-up businesses and the jobs they provide. Last session, the Assembly passed an identical bill, AB 671, on a voice vote.
SOLUTION:
Assembly Republicans would give individual employers and shareholders a financial incentive to reinvest their assets in a Wisconsin business, through the Wisconsin Investment Act, in 2009. These individuals would be eligible for a capital gains exclusion of up to $10 million for long-term reinvestment in a Wisconsin business, under certain circumstances, NOW. We want to give investors a reason to invest their money back into our economy, creating jobs here, instead of sending it to out-of-state companies.
Health Insurance Flexibility NOW (Vukmir)
FACT:
Wisconsin employers cannot purchase health insurance plans from out-of-state insurers.
PROBLEM:
Small business owners are suffering not only through a crippling economy, but skyrocketing health insurance costs, as well. They need more choices so that they can purchase quality health insurance for their employees at an affordable rate.
SOLUTION:
Assembly Republicans would allow Wisconsin’s employers to purchase health insurance plans from out-of-state insurers, which would facilitate some competition among all health insurance providers. These insurers would be subject to evaluation by Wisconsin’s Commissioner of Insurance, required to be in good standing with their own state’s insurance commissioner, and comply with other regulations such as fair marketing and medical privacy laws.
Sunset Phone Line Tax, Cap Gains Tax Increase & Combined Reporting
FACT:
In their budget, Democrats imposed a new $107.6 million tax on all telephone owners, a $242.5 million tax increase on individuals’ savings & investments, and a new $215 million tax on job-creators.
PROBLEM:
During the worst recession in generations—while unemployment is hovering near 25-year highs—raising taxes on employers, families, and individuals will only lead to more job loss, less hope for Wisconsin’s unemployed workers, and tougher budgets for Wisconsin’s families saving for college and retirement.
SOLUTION:
Assembly Republicans would sunset these new taxes and tax increases in 2011.
VIDEO: Watch the press conference on Wisconsin Eye
