 | | | | | Independent Business Association of Wisconsin Tax and Capital Formation Committee |
| Summary Positions
March 4, 2002
CHAIR: Bart Adams, Kolb+Co.
1-800-461-8843 |
| | There is no such thing as a business tax, only people pay taxes. Businesses either grow and create jobs or contract and reduce jobs as a result of government interference in an otherwise freely competitive marketplace. |
| Do not raise taxes to make up for the deficit spending by the State. Rather, shrink the size of government. The IBA supports efforts to control spending and eliminate tax increases. The Governor's Budget Reform Bill is very specific in its intent that there should be no increases in taxes at the state or local level. Wisconsin taxpayers are already overtaxed as Wisconsin is ranked #3 nationally, but is approximately average in per capita income, a relationship that Wisconsin taxpayers can no longer afford. We support efforts to control spending and oppose any efforts to raise taxes on overtaxed Wisconsin taxpayers.
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2. Enact a super majority requirement to raise taxes |
| | A 2/3 requirement to pass a tax increase or expand the tax base will ensure there is overwhelming support for increased expenditures. It is worth the effort to amend the Wisconsin Constitution. |
3. Continue and expand the phase out of the personal property tax. |
| Elimination of this archaic tax will recognize investments in technology and other equipment critical for economic growth, and will bring an end to the costly administration of the tax and allow Wisconsin businesses to remain competitive with businesses in surrounding states. We support bills that do not punish businesses when they expand or update their equipment and increase the efficiency and competitiveness of their employees. The Personal Property Tax is a double tax on all Wisconsin businesses and is a disincentive to expansion in Wisconsin and growth in Wisconsin employment. The IBA supports continued efforts to eliminate this archaic and anti-employment tax.
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4. Adopt "Single Factor" Apportionment for all buesinesses operating in or selling into Wisconsin |
| A simplification of the apportionment provisions of Wisconsin tax law will reward business expansion, attract new businesses to the state, and provide Wisconsin businesses a level playing field with out of state businesses selling into Wisconsin. We support AB 380 the "Single Sales Factor Apportionment" bill.
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5. Internal revenue code update - federalize Wisconsin tax code for changes in provisions traditionally federalized in the past |
| Simplify the tax code for Wisconsin residents, as has been done in the past. This is an unfair negative consequence for living in Wisconsin and is just another example of Wisconsin making retirement planning difficult for the middle-income taxpayer. And for Wisconsin businesses, non-federalization increases the complexity of tax compliance. This year non-federalization includes a penalty for Wisconsin based businesses which export, a major portion of Wisconsin sales and employment. We support the passage of AB 507, which has been passed with strong bipartisan support in the Assembly but has been held up in political maneuvering by the Senate Democratic leadership.
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| | A number of years ago, Wisconsin modified its estate tax to equal the federal estate tax credit for state estate taxes paid to the state. In this manner the Wisconsin resident did not pay anymore tax than the resident would have paid if Wisconsin had no estate tax. With the changes to federal estate tax law, beginning in 2003, Wisconsin taxpayers will once again have an estate tax in excess of any federal estate tax credits. Once again the Wisconsin will be sending a message to its taxpayers that in addition to being the 3rd highest taxed state while you are living, Wisconsin also wants to be known as one of the most oppressive states when you die here. We support the passage of AB 605 to allow Wisconsin taxpayers to take full advantage of the federal phase-out of the estate tax in Wisconsin. |
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