Posted on 02/19/2009 7:18:48 AM PST by Diana in Wisconsin
MADISON, WI -- With no Republican support, the Wisconsin Legislature passed a bill late Wednesday that raises taxes on everything from iPod downloads to corporate income, to help balance a record-high budget shortfall.
The fast-tracked measure also includes money for job training to put people back to work and starts spending federal stimulus money by directing $300 million toward road projects.
Democratic Gov. Jim Doyle was expected to sign it into law by the end of the week.
Democrats who pushed the bill called it a state stimulus package that will work in conjunction with the federal bill sending billions of dollars to the state.
"I'm proud of this bill and I think it will get people back to work," said Assembly Speaker Mike Sheridan, D-Janesville. "This is just the beginning. This is the first step in the stimulus package."
Republicans lambasted the bill - which wasn't made public until Monday and was never subject to a public hearing - as irresponsible and no help to the economy.
"It's hard to dream up a more foolish time to raise taxes on Wisconsin businesses," said Rep. Mark Gundrum, R-West Berlin. "This is just as foolish as it gets."
About 50 attempts by Assembly Republican to reject the tax increases and make scores of other changes to the bill were rejected.
The far-reaching proposal increases taxes on some multistate corporations by $215 million over the next two-plus years. It also taxes hospitals and applies the 5-cent sales tax to Internet downloads and specialized computer software.
Money raised from the taxes, along with $125 million in state government cuts, would shave $700 million off the state's projected $5.7 billion budget shortfall. The two-year budget Doyle introduced Tuesday solves the rest of the problem thanks to federal stimulus money, higher taxes and spending cuts.
Republicans and the state's business community railed against the tax increases, particularly a provision on so-called "combined reporting." Supporters argue it will close tax loopholes that allow companies operating in multiple states to shift their profits to out-of-state subsidiaries to avoid paying income taxes in Wisconsin. Twenty-two other states have similar laws.
Opponents argued it doesn't make sense to raise taxes in a recession, saying combined reporting would kill jobs in the state.
"Combined reporting will stimulate job loss, not job growth," said a statement from a coalition of 17 business groups, including the state's largest business lobby, Wisconsin Manufacturers and Commerce.
Instituting combined reporting only makes Wisconsin taxes worse for business, said Jeff Schoepke, director of tax and corporate policy for WMC.
"Given that we're sort of on the lower end in terms of competitiveness when it comes to taxes, this is a check in the wrong box," he said.
Democrats brushed aside the concerns. A report released this week by the Democratic-leaning Institute for Wisconsin's Future said combined reporting closes loopholes available only to multistate companies with sophisticated accounting and legal structures. That gives those companies an unfair advantage over small, single-state businesses, the report said.
The study also determined combined reporting has not hurt businesses. Seven of the eight states that have reported increased manufacturing employment since 1990 have had combined reporting for more than two decades, the report said.
But Senate Minority Leader Scott Fitzgerald, R-Juneau, said combined reporting will drive businesses away.
"We're not embracing these corporations and saying, 'Listen, we think the state of Wisconsin ought to be a partner with you,'" Fitzgerald said.
Republicans haven't always objected to combined reporting. Former Republican Gov. Tommy G. Thompson proposed it in the mid-1990s but it wasn't enacted.
The Senate passed the vote on a straight party vote. In the Assembly all Republicans voted against it, while the only Democrats who opposed it were Reps. Annette Polly Williams of Milwaukee and Bob Ziegelbauer of Manitowoc.
About time. I mean about the GOP opposing it, not the taxes themselves.
For too long the GOP has played the “go-along-to-get-along” game, and have been the Dems’ patsies. I say the GOP needs to fight every last Dem policy move, at every level, regardless of the press, with every tooth and claw we have. When the Dem policies inevitably fail, then they will have to eat it themselves.
-—yep—elections have consequences—
They sure do!
Heard yesterday that Milwaukee County Executive Scott Walker is SERIOUSLY considering running for Governor next time around. :)
And now he wants toll roads too!
Big government is recession-proof.
Gov. Doyle open to toll road idea
Associated Press — 2/19/2009 7:02 am
Gov. Jim Doyle has backed away from his staunch stand against charging tolls on Wisconsin highways.
The governor has indicated for the first time that he would be open to the idea.
Doyle told the Journal Sentinel that he dislikes the idea of toll roads, but said the state must find new ways to pay for roads and other transportation as gas tax revenue falls in the years ahead.
In 2003, Doyle vowed that as long as he was governor, Wisconsin would not have toll roads.
http://www.madison.com/tct/news/439442
“About time. I mean about the GOP opposing it, not the taxes themselves.”
I agree!
Yeah, I saw Doyle on TV last night. I had to turn it off. Wisconsin is already a tax hell hole and now it will become that much worse. Liberals just don’t seem to understand that when you increase taxes people react in a way to reduce the extra burden. That means businesses and people with money leave the state.
This is the same thing that proceeded the Great Depression!
In that case he better have tolls for leaving the State because that is the only direction they’ll be collecting on...I mean I love WI and all, but who the hell is going to pay tolls to come here?
This State if it just had an even a semi clear thinking leadership would slash every single tax possible. With the 10% sales tax and corporate taxes going up in IL and MN getting more and more socialist every day this state could reap the benefits of poor economic policies around us...instead we’ve got f’ing idiots in charge that think we’re not keeping up with the Joneses by having the same tax laws. At that point you may be able to save even Racine (maybe) and aggressively pursue companies that are moving further and further north from Chicago.
“That means businesses and people with money leave the state.”
We won’t be spending our ‘Golden Years’ here, that’s for sure. Just waiting for the parents and pets to pass on, then we’re outta here, too, even though this has always been ‘Home.’
You make a very compelling argument.
But, those coming here will be even MORE of the same, won’t they? The minute the socialists from MN and IL and MI set up shop, or sign up for welfare benefits, they’ll vote themselves even MORE Government Goodies, don’t you think?
Yep. They’re THAT stupid. ;)
It is time to start the 2010 campaign to get these idiots out of power. It is staggering to think what Wisconsin will look like in 2 years.
Can’t we just not let liberals vote...I think they’re happier when they can bitch about conservative policies anyways! ;)
Oh, Boy. LOL!
What’s life these days without a little laughter?
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