Last year, Wisconsin lost 163,000 jobs and our unemployment rate grew to 8.7%. Even more sobering is the 4.3% loss of job-creating private businesses since 2006, a rate that is worse than all neighboring states. Jobs are created by the private sector producing goods and services that people need and want. Real economic growth comes from business expansion and entrepreneurial innovation, not the expanding of government jobs, which only increase the taxpayers’ burden. The role of government is to make things easier for businesses to grow and for new ones to start.
Wisconsin has not done a very good job of this in the past few years. A recent example is Harley Davidson’s possible departure from Wisconsin. The main reason they cite for this is the new combined reporting tax enacted in the last state budget, which will cost Harley Davidson $22.5 million this year. If they leave Wisconsin, the loss of tax revenue to the state will be many times this amount. The loss of jobs will be even more devastating to families.
It is estimated that this new combined reporting tax will bring $1.2 billion into the state revenue. However, the real effect is $1.2 billion that businesses do not have for expansion and improvements to make themselves more efficient and competitive. The long-term effect will be even more devastating to Wisconsin families and the Wisconsin economy, resulting in even fewer jobs and lost state revenue for worthy programs.
This new tax needs to be repealed. History has shown that when you cut taxes, you encourage growth and jobs. The increase of jobs creates more prosperous families and actually increases state revenue.
I believe tax cuts, targeted tax credits, and less government interference encourage economic growth and job creation.
