Legislative leaders and the governor have come up with an economic recovery package for Wisconsin and reached an agreement for legislative approval of federal stimulus funds. The economic recovery package puts Wisconsin in position to retrain workers and put people back to work by building roads, bridges and schools. In addition, funds are available for the re-training of workers in new high-demand jobs. The proposal also closes corporate tax loopholes that allow businesses to avoid the Wisconsin taxes our working families and local businesses pay.
Included are additional cuts to state government spending to balance our budget, as well as provisions to bring more federal health care funds back to Wisconsin. This plan is the first step in bringing Wisconsin back into a strong economy by investing in job training and creation as well as leveling the playing field for Wisconsin businesses and ensuring strong implementation of the federal funds Wisconsin will receive.
This path for Wisconsin will take better shape with the introduction of the governor's budget today. Working together with the bill from this week, federal money, cuts to state government spending and state government services, and potential additional revenue increases - Wisconsin will have a balanced budget and a plan for economic recovery that will play out over the next two years on our roads and in our communities.
One part of the economic recovery package included in this extraordinary session bill is called combined reporting - it is a tax provision that requires corporations that do business in Wisconsin to pay income tax in Wisconsin if they have an income here. It also is likely the most controversial part of the plan. I am quite certain this will be called a tax increase by many interested parties, so I wanted to take time to explain combined reporting and what it means for Wisconsin businesses.
Only 13 percent of businesses in Wisconsin do not pay income taxes when they should right now. Nearly all Wisconsin businesses are doing the right thing and paying taxes owed. The remaining bad actors are using out-of-state subsidiaries to avoid the Wisconsin income taxes 87 percent of our businesses are paying. That is tax fairness for Wisconsin businesses, not tax increases. I have always supported tax fairness and at a time when our schools go unrepaired, our roads fill with pot holes, and our funds for the unemployed go dry - it is time for our bad actor businesses to pay their fair share.
It makes no sense in my mind why a good community bank like New Glarus State Bank should pay income tax, like they do, but Johnson Bank, another Wisconsin bank, does not pay a dime. Clearly they are the same kind of business and Johnson Bank is getting a free ride when New Glarus Bank is being responsible. It makes no sense to me why Kohl's Department store, a good Wisconsin retailer, who pays its fair share in income taxes should be undermined by retailers like Sears and Kmart, who use a tax loophole to not pay a dime. It is time for some tax fairness in the main street world. In order to build new businesses and provide tax credits for the businesses Wisconsin needs in our future, we need our existing businesses pay their fair share. Twenty-two other states have combined reporting, and Wisconsin will join them soon.
If you would like more information on the economic recovery bill that will be up in the Senate, the governor's budget proposal or combined reporting, please contact my office at 1-888-549-0027 or sen.erpenbach@legis.wi.gov.
- Sen. Jon Erpenbach, D-Waunakee, serves the 27th State Senate District.
Included are additional cuts to state government spending to balance our budget, as well as provisions to bring more federal health care funds back to Wisconsin. This plan is the first step in bringing Wisconsin back into a strong economy by investing in job training and creation as well as leveling the playing field for Wisconsin businesses and ensuring strong implementation of the federal funds Wisconsin will receive.
This path for Wisconsin will take better shape with the introduction of the governor's budget today. Working together with the bill from this week, federal money, cuts to state government spending and state government services, and potential additional revenue increases - Wisconsin will have a balanced budget and a plan for economic recovery that will play out over the next two years on our roads and in our communities.
One part of the economic recovery package included in this extraordinary session bill is called combined reporting - it is a tax provision that requires corporations that do business in Wisconsin to pay income tax in Wisconsin if they have an income here. It also is likely the most controversial part of the plan. I am quite certain this will be called a tax increase by many interested parties, so I wanted to take time to explain combined reporting and what it means for Wisconsin businesses.
Only 13 percent of businesses in Wisconsin do not pay income taxes when they should right now. Nearly all Wisconsin businesses are doing the right thing and paying taxes owed. The remaining bad actors are using out-of-state subsidiaries to avoid the Wisconsin income taxes 87 percent of our businesses are paying. That is tax fairness for Wisconsin businesses, not tax increases. I have always supported tax fairness and at a time when our schools go unrepaired, our roads fill with pot holes, and our funds for the unemployed go dry - it is time for our bad actor businesses to pay their fair share.
It makes no sense in my mind why a good community bank like New Glarus State Bank should pay income tax, like they do, but Johnson Bank, another Wisconsin bank, does not pay a dime. Clearly they are the same kind of business and Johnson Bank is getting a free ride when New Glarus Bank is being responsible. It makes no sense to me why Kohl's Department store, a good Wisconsin retailer, who pays its fair share in income taxes should be undermined by retailers like Sears and Kmart, who use a tax loophole to not pay a dime. It is time for some tax fairness in the main street world. In order to build new businesses and provide tax credits for the businesses Wisconsin needs in our future, we need our existing businesses pay their fair share. Twenty-two other states have combined reporting, and Wisconsin will join them soon.
If you would like more information on the economic recovery bill that will be up in the Senate, the governor's budget proposal or combined reporting, please contact my office at 1-888-549-0027 or sen.erpenbach@legis.wi.gov.
- Sen. Jon Erpenbach, D-Waunakee, serves the 27th State Senate District.
