Over 4,000 Sign Petition Against Tax Hikes, Liability Expansion
WMC Petition Drive Nearly Doubles in a Week

“The unanimity within the business community is unprecedented,” said James S. Haney, WMC president. “Over 4,000 signatures demonstrates that higher taxes, more lawsuits, and more regulations are the wrong prescription for creating jobs in our state.”

Last week, WMC delivered 2,100 petitions to Assembly leaders and Governor Jim Doyle opposing the state budget, especially the $3 billion in higher taxes and joint and several liability. The next day, Assembly Democrats rejected joint and several liability, but retained the tax increase.

“In less than a week, we nearly doubled the number of signatures,” Haney said. "The business community is gravely concerned about the direction of Wisconsin.”

The Senate today appears ready to delete the liability expansion, but add more taxes. “Deleting the liability expansion is very positive,” Haney said.“But the 150 percent increase in capital gains taxes will be a serious blow to job creation."

WMC will be delivering the over 4,000 signed petitions to Senate Majority Leader Russ Decker (D-Schofield) and Senate GOP Leader Scott Fitzgerald (R-Juneau) later today.

“I’ve never seen anything like this,” said James A. Buchen, WMC vice president of government relations. “The message is clear: Businesses are united and want to save jobs in Wisconsin.”

The WMC petition drive drew attention of The Wall Street Journal Political Diary that said the Wisconsin business community had called for “an urgent rethink” on the state budget.

Those signing the petition were asked to oppose a lengthy list of anti-growth proposals at the Capitol in addition to the higher taxes, and increased liability in the state budget, Buchen said.

WMC petition signers opposed the following by signing:

• Increase income taxes to a top rate of 7.75 percent, 11th highest in the nation ($318 million tax increase).
• Increase taxes by over $1 billion on businesses and investors.
• Increase state spending by 10 percent over the next two years.
• Increase capital gains tax by cutting the 60 percent exclusion to only 40 percent ($180 million tax increase).
• Increase energy costs with a gross receipts tax on petroleum products. Executives would be fined if they passed the tax on to consumers ($271 million tax increase).
• Expand liability by returning to joint and several liability that allows a defendant found to bear 1 percent of fault to pay 100 percent of the damages.
• Increase pressure to raise property taxes by repealing the QEO, qualified economic offer law.
• Increase property taxes by exempting transportation and other expenses for school districts from revenue limits.
• Increase insurance premiums by mandating increased coverage for auto insurance.
• Increase corporate taxes by 11 percent a year under a plan that taxes profits made on operations in other states. ($215 million tax increase).*
• Increase the garbage tax from $5.90 to $10.30 per ton.
• Increase fees for large water users.
• Extend the sales tax to custom software and overturn a Supreme Court precedent established that said custom software is tax exempt.*
• Extend compensatory and punitive damages to the workplace in discrimination cases.*

(* Proposals marked with an “*” have already been adopted by the Wisconsin Legislature.)

WMC has proposed the “Moving Wisconsin Forward” plan as a set of policies aimed at growing Wisconsin’s economy. The plan is available at www.wmc.org.

“There is a better way to create jobs in Wisconsin,” Haney said. “Hopefully, lawmakers will listen to these business leaders and do what’s right to create jobs for our families.”

FOR FURTHER INFORMATION CONTACT:
James S. Haney, (608) 258-3400
James A. Buchen, (608) 258-3400

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Posted: June 18, 2009