Budget committee cuts more than $1 billion in proposed new taxes

THE AGENDA: Legislative update
by Steve Baas - Senior VP of Government Affairs

A big “thank you” to the Wisconsin legislature’s Joint Committee on Finance members who stepped up last week to eliminate more than $1 billion in new taxes that had been included in the governor’s budget proposal. The two largest tax hikes removed included a proposal to scale back the Manufacturing Activities Tax Credit (MAC) by more than $500 million and a proposal to increase capital gains taxes on individuals by more than $500 million.

The MAC has been one of Wisconsin’s most effective tools to attract and retain high-paying manufacturing jobs. Scaling it back would have done significant damage to our economic competitiveness. Similarly, increasing capital gains taxes would make Wisconsin a less attractive place for individuals to invest in new businesses and innovation. MMAC applauds the finance committee for its action on these items, and their appreciation for the need to maintain a strong toolbox of public policies that help keep Wisconsin competitive in the national and global marketplace for jobs and talent.