Schultz Wants State to Listen to Job Creators
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| Wisconsin Jobs Now Task Force held seven roundtable discussions across the state with more than 150 job creators. An abbreviated versions of the Task Force findings are below. VIEW FULL REPORT (PDF) |
Madison….. More jobs will help families, communities and the state to put the recession behind us is the view of State Senator Dale Schultz (R-Richland Center).
Schultz has been holding Economic Growth Forums in communities throughout the rural region he represents, inviting business leaders, economic development professionals and other local officials that have been partnering effectively for years to keep good jobs in their communities and attract new jobs.
“’How can the state be a better partner to you?’ was my question at each forum,” Schultz said. “For economic recovery, state and local leaders should be focused on economic growth – helping create more jobs, not just cutting services and raising taxes.”
At forums in Dodgeville, Sauk City, Lancaster, Fennimore, New Lisbon, Elroy, Mauston, Necedah, Reedsburg and other communities, job creators offered many recommendations, including:
- Establish a regional food processing facility to advance the Buy Local – Buy Wisconsin plan;
- Create a community-based micro-business loan fund;
- Bring affordable, quality broadband to rural regions;
- Support county and regional economic development corporations and other organizations in the job creation business;
- Unleash entrepreneurs to start more businesses by making affordable health insurance available through programs like Coop-Care;
- Retain the state’s tax incremental financing program that helps cities and villages create jobs;
- Keep the status quo for the state’s prevailing wage law;
- Don’t change state liability rules that make Wisconsin less attractive to employers;
- Stop raiding the state’s transportation fund that delays projects important to workers and employers;
- Avoid a ‘big oil’ tax that will hurt rural cooperative patrons;
- Encourage young people to pursue science, technology, engineering and math fields;
- Don’t increase capital gains tax rates that discourage business investments; and
- Support workforce development programs that help employers and workers.
Schultz said the message he heard was that job creation is directly related to taxation, regulation and litigation issues that hurt an employer’s profits and make our state less competitive to attract employers.
Job creation ideas at forums Schultz held are similar to recommendations from the
Wisconsin Jobs Now Task Force that held seven roundtable discussions across the state with more than 150 job creators. The final report from that task force is at www.wisconsinjobsnow.info.
Schultz welcomes your comments on how to create more jobs at sen.schultz@legis.wi.gov.
WISCONSIN JOBS NOW
TASK FORCE FINDINGS
High Taxes Discourage Job Growth
Reduce the Personal Income Tax –
Personal income tax greatly impacts businesses in two ways: First, more than 90 percent of businesses file taxes as individuals.4 Reducing the personal income tax would lower the tax burden for the vast majority of employers.
Second, to attract skilled workers to Wisconsin, it is important to be at a competitive advantage. By reducing taxes across the board, job creators can more easily attract top-notch talent and Wisconsin will be more attractive for new business startups. The Task Force recommends an overall reduction in individual and employer taxes.
Repeal 11% Employer Tax Hike Passed in February –
2009 Act 2 contained more than $1 billion in tax increases targeted toward employers. The newly implemented combined-reporting tax is one of the farthest reaching laws of its kind in the nation. The new tax on custom software puts Wisconsin at a distinct disadvantage in attracting high-tech start-ups. The Task Force recommends repealing both of these tax increases.
Freeze property taxes –
Job creators spoke repeatedly of their increasing property tax burden and the need to control the increases. The Task Force recommends maintaining a strong property tax freeze to reduce the ever-increasing burden placed on businesses looking to expand or trying to attract new employees.
Simplify and Streamline Tax Code –
With the creation of each new fee, there are increased administrative costs for businesses. The Task Force heard from a number of job creators about the endless forms and applications the state keeps imposing on them. The benefits of a simplified tax code would be numerous. The Task Force recommends streamlining, consolidating, and cutting fees on employers.
Stop the increase in the Capital Gains Tax –
One of the biggest obstacles that start-ups and expanding businesses face is access to capital. State capital gains taxes directly impact the rate of return on investment and entrepreneurship because they reduce capital and discourage risk taking, which is the main source of economic growth. 4
President Obama has publicly acknowledged that reducing capital gains taxes actually “encourages and rewards new investment in qualified small business stock.”5 The Task Force recommends opposing an increase in the capital gains tax.
Reduce the Tax Burden on Expansion/Retooling –
Our state must show we are willing to support company expansion and reinvestment as businesses adjust to the global marketplace. To help Wisconsin employers stay competitive, and to create jobs for equipment suppliers, the Task Force recommends providing tax relief on new equipment purchases.
2009 Report
1. http://www.taxfoundation.org/publications/show/22917.html
2. http://www.taxfoundation.org/taxdata/show/251.html
3. http://www.taxfoundation.org/taxdata/show/488.html
4. http://www.sbecouncil.org/uploads/sbsi%202008%5B1%5D.pdf
5. http://www.treas.gov/offices/tax-policy/library/grnbk09.pdf
Streamline Burdensome Regulatory Climate
Freeze on new regulations –
While our state and country are in a severe recession, state government should not be implementing any new regulations on businesses that will have a sizable financial impact and could cost Wisconsin more jobs. The Task Force recommends a freeze on all new regulations until the economy improves.
Expediting the permitting process –
Time lost is money lost and it means delays in creating new jobs. Private sector shovel-ready projects need to be permitted quickly to create jobs now. The Task Force recommends guaranteeing agency permitting responses within a reasonable amount of time.
Pre-permitting in Industrial Zones –
Pre-permitting of industrial zones allows expanding job creators the ability to build or expand to avoid going through duplicative and expensive permitting processes that prior companies have already gone through. The Task Force recommends increasing access to pre-permitting.
Increase use of Internet for permits –
With the closure of many state branch offices, it will become increasingly important to maintain easy access for businesses applying for permits and services. The Task Force recommends increasing the use of automated and Internet-based permitting and services.
Bring State Regulations in line with Federal Regulations –
Businesses trying to expand or start up often run into overlapping regulations that are slightly or sometimes greatly different between the state and federal governments. With the high cost and time burdens placed on job providers by regulations, the Task Force recommends aligning state statutes and administrative rule regulations with federal regulations where possible.
1. http://www.sba.gov/advo/research/rs264tot.pdf
2. http://www.forbes.com/2007/07/10/washington-virginia-utah-biz-cz_kb_0711bizstates-table.html
Train and Educate a 21st Century Workforce
With a world-class university system, there should be few impediments between employers and the services that the UW System can provide for research and development of high technology. The Task Force recommends a review of existing collaborations and the encouragement of new ones.
Invest in Apprenticeships –
Apprenticeships provide an unparalleled opportunity to train workers for the skilled labor needed for a family-supporting job. The Task Force recommends the state provide a framework that reduces risks for employers to hire apprentices and ensures a highly-skilled workforce.
Stop the “Brain Drain” –
By creating good-paying, exciting careers in Wisconsin and by lowering the tax burden, high-skilled workers who study here will stay here. The Task Force recommends creating a business-recruiting team to bring high-tech and cutting-edge industries and startups to Wisconsin.
Promote Workforce Advancement Training Grants (WAT) –
A number of business representatives highlighted successes of the WAT grant program through the Wisconsin Technical College System. The Task Force recommends increasing funding for these grants to provide more companies with worker training resources.
Provide Incentives for employers who voluntarily retrain workers –
As our economy is evolving, so is the workforce. Retraining workers is key to Wisconsin getting back on track. The Task Force recommends providing tax credits that will help employers invest in the skills of Wisconsin workers.
Expand cooperation between high schools and technical colleges –
Many times students are faced with a one–size-fits-all education system. By giving students more opportunities to begin training for skilled trades or to earn UW system credit while in high school, we can create a workforce to fuel our economy and allow students to enter the workforce sooner. The Task Force recommends increasing options for dual enrollment for K-12 students at UW System schools and Wisconsin Technical Colleges.
A Strong Economy Requires Affordable Health Care
Help small businesses afford health insurance –
Large companies often have a huge advantage over smaller companies by being able to self-fund their health insurance plans. The Task Force recommends allowing small businesses to pool together to achieve significant health insurance cost savings.
Reform the Medicaid system –
As the rolls of Medicaid patients continue to grow and payments to providers stay the same, costs are increasingly being shifted to employers and their workers. This “hidden health care tax” needs to stop. The Task Force recommends Medicaid reforms which will lower costs and reduce the cost shifting.
Guarantee reasonable caps on non-economic damages for medical malpractice cases –
Wisconsin should seek to retain and recruit the best doctors in the world. When malpractice insurance rises, the cost on doctors sharply increases, causing them to move elsewhere. This causes physician shortages, particularly in high cost specialty areas. The Task Force recommends establishing low long-term caps on non-economic damages.
Stop raids on Injured Patients and Families Compensation Fund –
The IPFCF should remain completely segregated and used solely for its intended purpose. Protecting this fund will prove to be an effective tool for recruiting quality health care providers to come and remain in Wisconsin. The Task Force recommends prohibiting future government raids on the fund.
Move toward Patient-Centered Care –
Our current health care system is a hodge-podge of government-created systems. We can control cost by requiring cost and quality information to be disclosed, as well as encouraging the use of patient centered care. The Task Force recommends that Wisconsin implement a system where patients have access to the information they need to make informed decisions and have control over their health care dollars.
1. http://www.cahi.org/cahi_contents/resources/pdf/HealthInsuranceMandates2008.pdf
2. http://econ.byu.edu/Faculty/showalter/Assets/Papers/state%20regulations%20and%20insurance_5.23.2008.pdf
3. http://www.nsba.biz/docs/09HRT_Survey.pdf
First Do No Harm
Don’t increase the Wage Claim Lien Cap –
Access to credit is one of the most important parts of growing a small business into a large one. By making it harder for businesses to borrow money, government makes it harder for them to create jobs.
Don’t increase the state minimum wage above the federal minimum wage –
Increasing labor costs on small business at a time when they are struggling to make ends meet will only force them to cut workers. While increasing wages for workers is a priority for all leaders, forcing increases during a recession is short- Sighted. Turning Wisconsin into a wage island will put us at a competitive disadvantage with neighboring states and encourage employers to relocate across the border.
Don’t adopt proposed changes to Prevailing Wage Law –
The construction industry is at the heart of our state’s economy and the Task Force heard from many people employed in those trades. Their biggest concerns were changes to the “prevailing wage.” This proposal will increase costs for public projects, decreasing the number of projects that can be completed and reducing the number of jobs created.
Don’t repeal the 1995 reforms in Joint-Several Liability statutes –
Changing this statute will bring small businesses to the brink of bankruptcy any time they are named in a lawsuit. The proposed changes could make an employer who is as little as 1% at fault, 100% liable for damages. Wisconsin should maintain a fair liability environment to encourage economic growth and job creation.
Don’t increase auto insurance costs –
The Task Force heard from business representatives whose companies owned multiple vehicles and were concerned about the effect that increased costs for auto insurance would have on their business. The proposed changes will increase auto insurance rates by more than 33% and bring Wisconsin rates from the 3rd lowest in the country to one of the highest, increasing costs on employers, and killing jobs.
http://www.epionline.org/study_detail.cfm?sid=98