Tax increases hurt business and kill jobs
When a business can’t make ends meet, it has to lay off employees. In the midst of a recession with employers struggling and people losing their jobs, the wrong thing for government to do is take more money from them. Government can’t keep dialing up taxes to fuel state spending and pretend it won’t cost jobs. Unfortunately, that’s exactly what Democrats are doing.
Senate Majority Leader Russ Decker, D-Schofield, recently wrote a column (Page 9A, March 3) trying to justify why he and Gov. Jim Doyle have passed, and are proposing more, massive tax increases on employers. He talks about closing a “Las Vegas loophole” in which he wrongly accuses Wisconsin employers of avoiding tax payments. What he’s referring to is “combined reporting,” in which government collects taxes from Wisconsin businesses on income derived in other states.
One company that will be hard hit by the new tax is Frito-Lay, which has plants in Beloit, Beaver Dam and other locations across Wisconsin. We have worked hard through the years to encourage such companies to locate and expand in our state.
Gov. Doyle and legislative Democrats turned a deaf ear to businesses’ concerns when they made combined reporting state law and proposed more backbreaking taxes on top of it. Hundreds of companies, large and small, will be hit hard by this quarter-billion dollar annual tax increase. Now they’re deciding whether they can keep operating in Wisconsin. If they decide to move those jobs out of our state, they’re gone for good.
Many of these employers have been calling me to ask why Democrats are punishing them. John Radke, president of BioResearch, which employs 15 people in Brown Deer, said this will make him reconsider expanding here in the future. Procter and Gamble, which provides 1,000 good-paying jobs in Green Bay, will be hit with $5.4 million more in taxes each year.
The lesson that Sen. Decker should have taken from Miller Coors choosing Illinois over Wisconsin is that our business climate is worse than Illinois’ even without combined reporting. Other states have combined reporting, but most remain more attractive for businesses because many other factors rank Wisconsin’s business climate among the worst in the country. In Forbes Magazine’s 2008 ranking of the best states for business, Wisconsin ranked 43rd. More taxes on businesses will only pull Wisconsin’s ranking down further.
The nonpartisan Tax Foundation shows that Wisconsin’s business tax climate is not competitive and that taxes matter to businesses when considering where to locate. Wisconsin Democrats worsened our state’s business climate at the worst possible time—when we’re in the midst of the worst recession in decades.
Republicans launched the WISCONSIN JOBS NOW Task Force to hear from employers on what the government should and should not do to help them maintain and create jobs. The first thing they say is to stop raising the price of doing business. Private-sector growth, not government, will dig us out of this recession.
Visit the Web site www.wisconsinjobsnow.info for more information on the task force.
Sen. Scott Fitzgerald, R-Juneau, is Senate minority leader and represents the 13th Senate District. Write to him at Room 202 South, State Capitol, P.O. Box 7882, Madison, WI 53707-7882; call him at (608) 266-5660 or e-mail Sen.Fitz-gerald@legis.wisconsin.gov.
Mar 13, 2009 at 6:34 p.m.
Suggest removal
dkush21,
I was actually referring to income taxes when I was talking about 10%. But if you keep taxing businesses, they pass on that cost of doing business to the consumer. So the middle class ends up paying for it anyway.
Mar 13, 2009 at 2:48 p.m.
Suggest removal
DrTalk: That's exactly what I meant. A flat tax across the board. No exceptions or loopholes.
Mar 13, 2009 at 12:15 p.m.
Suggest removal
"Everyone should be paying their fair share in taxes."
-
That sounds good, fair. What is fair? Fair to a business is enough so they can stay afloat. Fair to others are "let the rich pay". Why don't you put a number behind the "fair"; a number for all people , business, rich, "poor"--- no mater what you pick others will decide it is not fair. Until then it is only feel good and sounds like a politician.
Mar 13, 2009 at 11:57 a.m.
Suggest removal
dkush21,
I certainly didn't mean to imply that businesses should pay their fair share of taxes. I certainly agree with you that everyone needs to pay their fair share of taxes but to tax people more because the make more is idiotic. There should be a flat tax, say 10%. If you only make $1, then you owe a dime. If you make $10,000 you owe $1000. Bottom line is: if you make money you pay taxes. But currently there are people that don't pay taxes at all.
Mar 13, 2009 at 9:44 a.m.
Suggest removal
The problem is that businesses like everyone else have to pay for their costs on society. For example, farmers never pay for their pollution of the water ways. Businesses benefit from roads and the fact that property taxes pay for the removal of their goods once purchased. It is an example of how business people want to privatize their gains and subsidize their losses. It is this mentality that we are all tired of. If you have a business and haven't figured out a way to reduce your tax burden you can't be very smart.
A business can be a non-profit. As the head of a non-profit you can earn over one hundred thousand dollars a year just like the head of a college or university. You just can't have shareholders or distribute profits. Craigslist is a non-profit and does very well providing jobs to its employees. So, pay your taxes and stop trying to extort society with threats of laying people off.
Mar 13, 2009 at 9:17 a.m.
Suggest removal
DrTalk: Sorry, I don't agree with you. Everyone should be paying their fair share in taxes. It should not be dumped on the middle class.
Mar 12, 2009 at 9 p.m.
Suggest removal
DrTalk - "If they pay less in taxes, then they make more money and then they can expand their business and hire more employees."
It sounds like common sense but we know that just because a business owner makes more money does not mean that more people will be hired. There is just as good a chance that the extra money will pocketed to make the owner richer. Where is the documented evidence that lowering taxes increases employment?
Mar 12, 2009 at 8:37 p.m.
Suggest removal
dkush21:"Believe me, they will pay if they have to instead of closing their businesses down. They need the workforce to run their businesses."
.
But they won't pay any more taxes than they have to. They are not is business to pay taxes, they are not in business to break even, and they are not in business to lose money. If a business is not making money, they will close up shop. If they pay less in taxes, then they make more money and then they can expand their business and hire more employees.
Mar 12, 2009 at 12:51 p.m.
Suggest removal
As far as I'm concerned, this is a scare tactic businesses use so that they don't have to pay higher taxes. Believe me, they will pay if they have to instead of closing their businesses down. They need the workforce to run their businesses. I guess they'll just have to restructure how they pay upper management.
Mar 11, 2009 at 9:21 p.m.
Suggest removal
I'm sorry but the author talks about "massive" tax increases but doesn't say what that means so it is hard to judge the merit of his argument. It is a common ploy to scare people into believing that jobs are at stake when businesses are asked to contribute to our tax base. Let's have some solid evidence to back up the claim that businesses are going to layoff people due to the proposed tax increases. Evidence please not speculation.
Mar 11, 2009 at 4:25 p.m.
Suggest removal
It shouldn't be a question of who gets taxed more. Government needs to cut out idiotic spending. Instead they are increasing taxes so they can spend more. And don't think that our taxes aren't going to increase. For the moment, taxes may go down, but it is only a loan. A very high percentage loan that we will be paying back soon!
Mar 11, 2009 at 1:23 p.m.
Suggest removal
dkush21, you can thank the democrats for dumping all those taxes on the middle class. They are the ones who are driving this idiotic stimulus package through that gives billions of tax payer dollars back to these poorly managed buisnesses.
Mar 11, 2009 at 12:51 p.m.
Suggest removal
I am so sick and tired of people defending the businesses about paying their fair portion of taxes. If you make more, you pay more. Why should it always be dumped on the middle class to pay for these multi million dollar businesses. They can afford it if they know how to manage their money correctly. Instead of giving millions in pay and bonuses, they should be focusing on keeping their businesses alive. If they can afford to give millions in pay and bonuses, then they can afford to pay the taxes.
Mar 11, 2009 at 8:58 a.m.
Suggest removal
Very good article. I look at the top 10 states with the highest taxes like New Jersey, New York, California, WI have serious deficits. All states are struggling now, but one state is cutting taxes is Louisiana. We will see how this works for them.
Before you post a comment, consider this:
Note: GazetteXtra.com does not condone or review every comment. Read more in our User Policy AgreementPost Comment
Commenting requires registration.