MADISON – Wisconsin Manufacturers & Commerce (WMC) reiterated that there is never a good time to raise taxes – especially when the budget is projected to generate a significant surplus. WMC’s comments were in response to proposals circulated this week by Democratic members of the Wisconsin State Assembly that would raise taxes and severely limit the Manufacturing and Agriculture Tax Credit.
Last month, it was just revealed by the state’s non-partisan Legislative Fiscal Bureau (LFB) that Wisconsin has more than $800 million in extra tax revenue than was originally budgeted.
“There is only one commonsense thing to do when your state has a surplus of tax revenue: give it back to the taxpayers,” said WMC General Counsel and Director of Tax, Transportation & Legal Affairs Cory Fish. “These recent proposals to raise personal income taxes and severely limit the Manufacturing and Agriculture Tax Credit would throw sand in the gears of our state’s economy and threaten the strong financial situation Wisconsin is in thanks to our recent history of pro-growth reform.”
WMC and its members know that the reforms at the state and federal levels to get government out of the way, have helped the economy prosper and tax collections increase. The proposed Individual Income Tax bill would catapult Wisconsin into the top ten worst income tax rates in the nation and would make it harder to attract workers, harder to open a business, and harder for current businesses to compete. Given our state’s surplus, now is the time to continue on our pro-growth policy agenda, not change it.
Last year, when Governor Tony Evers proposed an overhaul of the Manufacturing and Agriculture Tax Credit, WMC produced a series of videos showing the real impact that this credit has on the more than 40,000 jobs directly linked to it. WMC believes that we should not move forward on this proposal to severely limit the Manufacturing and Agriculture Tax Credit – a proposal which would lead to a $500 million tax increase on an industry that employs almost 500,000 people in Wisconsin.
WATCH: The Direct Impact of the Manufacturing and Agriculture Tax Credit
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