Taxes & Spending

Protect the tax credit that has allowed two pillars of Wisconsin’s economy, manufacturing and farming, to thrive. Since its implementation, the MAC is responsible for the creation of over 42,000 jobs (2017 numbers) and a higher manufacturing jobs growth rate than neighboring states.

States with no income tax have seen their gross state product grow faster than states with an income tax, in addition to no-tax or low-tax states experiencing positive in-migration. Repeal of the personal income tax will make Wisconsin’s business climate instantly more competitive in the Midwest, help address worker shortages, and unlock Wisconsin’s economic potential. In the absence of eliminating the income tax, Wisconsin should reduce and flatten the rate to remain competitive with other Midwest states that have lowered rates and enacted other tax reforms.

Follow the lead of pro-growth states and create certainty for taxpayers by capping the top individual income tax rate in the state constitution so the top rate can be cut – but not raised.

Limit the growth of Wisconsin’s property tax burden, currently the fifth highest in the nation, by placing the current property tax levy limit standard in the state constitution, which limits the ability of local governments to increase property taxes while allowing for reasonable increases for new development.

Wisconsin’s R&D credit has historically been used to incentivize high-tech, good-paying jobs to Wisconsin. However, it has lost its efficacy due to net operating losses carried or incurred by many companies during the great recession and an increasing number of states making their credit refundable. Making Wisconsin’s R&D credit fully refundable will ensure our state can compete for these jobs in the future.

Local governments have asked the Legislature to prohibit the use of physically comparable vacant properties as comparable sales to occupied properties for property tax assessment purposes. The result of this policy would allow tax collectors to more subjectively assess property value, and taxes, as well as to make it harder for businesses to challenge their tax bill.

Local governments are attempting to make Wisconsin a national outlier in the way we assess property taxes by including the value of financing agreements, such as triple-net leases, as real property for property tax assessment purposes. This would lead to significant property tax increases on Wisconsin businesses and create a disincentive to create or expand businesses in the state.

Enact an income tax credit that would partially offset property taxes paid on buildings used for agricultural production.

A competitive tax climate is a necessary component to promoting a strong economy. WMC will oppose any increases in tax rates or burdensome tax regulations that make Wisconsin’s business climate less competitive.

The size and scope of government should be limited to avoid unsustainable spending that often drives future tax increases. Our state budget should avoid raids on dedicated funds, maintain a healthy reserve and budget stabilization fund, and dedicate surplus revenues to tax relief for the taxpayers to whom it rightfully belongs. The state should outsource those functions which can be accomplished more cheaply and efficiently by the private sector, and eliminate instances where taxpayers subsidize competition against private sector businesses.