Elimination of the Manufacturing and Agriculture Tax Credit Would be Detrimental to Middle Class Jobs
MADISON – On Tuesday, Democratic state legislators launched an attack on Wisconsin businesses that are the lifeblood of our state’s middle class. These elected officials railed against the manufacturing and agriculture tax credit that has helped more than 10,000 Wisconsin businesses grow and expand family-supporting jobs in our state.
While pursuing a false narrative that pits one group against another, these legislators ignore the facts that the manufacturing and agriculture tax credit has stimulated the state’s economy. Manufacturing jobs have an average compensation of $68,878 per year, which is 45 percent higher than the state’s average income. Without the tax credit, countless middle class jobs could be lost.
The Wisconsin Democrats’ plan also flies in the face of what other Democrats are doing across the country. Democratic New York Gov. Andrew Cuomo recently reduced the state’s manufacturing tax rate all the way down to zero. For Wisconsin to stay competitive with other states, policymakers must continue to make the state friendlier to businesses.
In response to the legislators, Scott Manley, WMC’s Senior Vice President of Government Relations, released the following statement defending the tax credit and job creators all across Wisconsin:
“The manufacturing and agriculture tax credit has given a boost to family-supporting, middle class jobs all across our state, and it is imperative that we keep it in place. The Fiscal Bureau memo proves that the credit is working – the projected growth of the credit means that manufacturing production in our state will necessarily grow too. This is great news for middle class families.
“In the five years before the credit was enacted, Wisconsin lost 81,000 manufacturing jobs. In the five years since it was enacted, the state has added 34,000 manufacturing jobs. We have stopped the bleeding of family-supporting manufacturing jobs, and we are actually growing them now in our state.
“While legislators are trying to paint this as a handout to the top one-percent, nothing could be further from the truth. In fact, 88 percent of the Wisconsin employers that benefit make less than $1 million per year. The manufacturing and agriculture tax credit benefits small businesses and middle class workers – that is a fact.
“Wisconsin is moving forward, and it is thanks to reforms like the manufacturing and agriculture tax credit. Instead of penalizing middle class jobs with higher taxes, Democrat lawmakers should support tax incentives to boost manufacturing jobs like their Democrat counterparts have done in states like New York.”
For more information, contact:
Nick Novak, 608.258.3400