Taxes and Regulatory Climate

MMAC Goal: A tax and regulatory climate that positions Wisconsin for growth

In a survey of our members, 83% said they believe the current tax burden negatively impacts economic development.  While high taxes and regulations are not the sole driver of business location decisions, they take on added importance in the global competition for jobs and investment.

There were development-friendly changes in the past state budget that targeted early stage investment, reinvestment of capital gains, research and development, and biotechnology. Unfortunately, those gains were overshadowed by nearly $745 million in tax increases that squelched corporate growth and investment capital. While this new revenue represents less than 1% of the total state budget, it serves as a significant disincentive to job growth.

Our priority is to work with the State's elected leadership to reverse tax increases such as corporate combined reporting, expand the exclusion for capital gains, and lower the top rate for personal income taxes. Our agenda emphasizes a tax structure that encourages investment while raising revenue to support necessary state and local services.  We are conducting a comprehensive review of our current tax structure in light of our economic development strategy.

Finally, with broad support of our membership, we aggressively filed suit against the flawed referendum that placed a paid sick leave mandate on employers in the City of Milwaukee. While MMAC prevailed in the initial court ruling challenging the ordinance, we remain deeply concerned over the precedent and message it sent to employers.

2007-2009 Results

• Mounted successful legal challenge to the City of Milwaukee's Paid Sick Leave Mandate (MMAC vs. City of Milwaukee).
• Successfully lobbied for the following changes in the 2009-2011 state budget:
• $13 million in annual tax savings for investors in new and early-stage business starts.
• $14 million in annual tax savings to individuals who reinvest capital gains within 180 days in new Wisconsin businesses.
• $5 million in annual tax credits for businesses investing in research and development (capital or activities).
• Jobs tax credit up to 10% of wages paid for 10 years to qualifying jobs created in the state ($10 million annually).
• State machinery and equipment exemption to include qualifying investments in biotechnology ($13 million annually).
• Blocked legislation lowering the percentage of causal negligence necessary to trigger 100% liability for damages in civil actions.