Wisconsin and Minnesota may never come to a mutual agreement regarding Brett Farve, but if there's one thing our two states should agree on, it's the fact that farmers do not need another tax burden.
With the termination of Wisconsin and Minnesota's 41-year income tax reciprocity agreement, more than 80,000 border-crossers will have to file income tax returns in two states plus possibly see an added increase in their taxes. According to Wisconsin's Legislative Fiscal Bureau, the majority of people affected by the termination of the tax agreement will be Wisconsin residents. Specifically, Wisconsin farmers who work in Minnesota and have business or farm losses in Wisconsin would have been severely impacted by higher taxes as a result, since they would have been unable to deduct losses from their wage income when they file a Wisconsin income tax return.
On Oct. 12, I met with Minnesota and Wisconsin legislative colleagues, legislative staff specializing in tax issues and the Minnesota Revenue Commissioner with the goal to seek a strategy that will lead to the reinstatement of the long-standing and beneficial agreement. Following the meeting, I, along with others, voiced concerns that farmers would be unable to claim losses on their wage income tax returns. Upon further review, Wisconsin and Minnesota tax specialists negotiated and reached a compromise that Wisconsin residents with business or farm losses will be able to deduct losses from their wage income when they file their Wisconsin income tax returns.
I'm grateful for this change, but I will continue to work diligently with my Wisconsin and Minnesota colleagues to reinstate a tax agreement that maintains a beneficial and efficient tax filing system for the hard working men and women in my district.
This is hardly a time to create an additional burden on farmers who already are reeling from the adverse affects of the current economic recession. During my frequent travels throughout the 32nd District, I have the opportunity to meet with many farmers, and I know that it often is a daily struggle for farmers to even continue their operation. With operation costs exceeding their paychecks, farmers are desperately searching for ways to become more efficient while struggling to keep their farm in operation. Many farmers not only are facing a smaller paycheck, they also are facing a deficit loss nearly every day. Yet, they remain unconditionally committed to caring for their herds and harvest seven days a week despite growing expenses and diminishing milk prices.
Most farmers remain devoted to their occupation because of their passion for farming and agriculture. While many farmers are eagerly waiting for Wisconsin's economy to recover, filing additional taxes only will be an inconvenience to some of Wisconsin's hardest workers. The consensus among the participants of the Oct. 12 meeting in Woodbury was that this is an urgent matter. I urge both Governor Doyle and Governor Pawlenty to take advantage of this small window of opportunity to continue the dialogue and resolve this issue that could negatively affect 80,000 residents of our two great states.
With the termination of Wisconsin and Minnesota's 41-year income tax reciprocity agreement, more than 80,000 border-crossers will have to file income tax returns in two states plus possibly see an added increase in their taxes. According to Wisconsin's Legislative Fiscal Bureau, the majority of people affected by the termination of the tax agreement will be Wisconsin residents. Specifically, Wisconsin farmers who work in Minnesota and have business or farm losses in Wisconsin would have been severely impacted by higher taxes as a result, since they would have been unable to deduct losses from their wage income when they file a Wisconsin income tax return.
On Oct. 12, I met with Minnesota and Wisconsin legislative colleagues, legislative staff specializing in tax issues and the Minnesota Revenue Commissioner with the goal to seek a strategy that will lead to the reinstatement of the long-standing and beneficial agreement. Following the meeting, I, along with others, voiced concerns that farmers would be unable to claim losses on their wage income tax returns. Upon further review, Wisconsin and Minnesota tax specialists negotiated and reached a compromise that Wisconsin residents with business or farm losses will be able to deduct losses from their wage income when they file their Wisconsin income tax returns.
I'm grateful for this change, but I will continue to work diligently with my Wisconsin and Minnesota colleagues to reinstate a tax agreement that maintains a beneficial and efficient tax filing system for the hard working men and women in my district.
This is hardly a time to create an additional burden on farmers who already are reeling from the adverse affects of the current economic recession. During my frequent travels throughout the 32nd District, I have the opportunity to meet with many farmers, and I know that it often is a daily struggle for farmers to even continue their operation. With operation costs exceeding their paychecks, farmers are desperately searching for ways to become more efficient while struggling to keep their farm in operation. Many farmers not only are facing a smaller paycheck, they also are facing a deficit loss nearly every day. Yet, they remain unconditionally committed to caring for their herds and harvest seven days a week despite growing expenses and diminishing milk prices.
Most farmers remain devoted to their occupation because of their passion for farming and agriculture. While many farmers are eagerly waiting for Wisconsin's economy to recover, filing additional taxes only will be an inconvenience to some of Wisconsin's hardest workers. The consensus among the participants of the Oct. 12 meeting in Woodbury was that this is an urgent matter. I urge both Governor Doyle and Governor Pawlenty to take advantage of this small window of opportunity to continue the dialogue and resolve this issue that could negatively affect 80,000 residents of our two great states.
