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FAIR and ADEQUATEIWF's newsletter on tax policy Read the most recent issue.
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Recently at IWF

IWF Staff after the fire in their office building.

IWF Staff in new offices.

IWF has a new home

Since the fire in our former office building in January, the staff at IWF took on the additional task of finding new quarters. After several false starts and dashed hopes, we found office space at 325 West Silver Spring Drive in Glendale, on Milwaukee’s northeast side. With easy access to the freeway, the new location is ideal for the staff’s statewide work. We are settling in, the computers are hooked up, the phones are installed – the new number is 414-967-1682, and even a few pictures are up on the walls. It’s great to be up and running again! To add to the homey atmosphere, there is actually a decorative fireplace in the main room.

With any luck, it will never see a fire.


Senate panel says: ‘Close the tax loopholes’

The Wisconsin Senate Finance Committee voted to close corporate income tax loopholes, as part of its plan to deal with the state’s recession-induced budget shortfall.

Adopting combined reporting, which would hinder big corporations’ ability to shift profits out of Wisconsin, was part of the package approved 6-2 by the committee. The full Senate will vote Tuesday.

For details, see the story in the Milwaukee Journal Sentinel.

For IWF’s testimony to the Finance Committee, supporting combined reporting.


Combined reporting: Eloquent support in Florida

Florida's The Tampa Tribune published a superb editorial endorsing combined reporting, the tax reform that closes the loopholes that allow big companies to shift profits from one state to another.

The Tribune said: “Florida allows multistate businesses to shelter Florida income in other states. This makes the effective income-tax rate on small Florida businesses higher than the rate paid by corporations sheltering income elsewhere…Finding legal ways to collect taxes that are already on the books is not a tax increase. This year, with revenues falling far short of covering basic priorities, the Legislature should take a serious look at a few revenue-generating reforms.”

Combined reporting is included in the Wisconsin Senate’s budget-repair bill. It’s a long-overdue reform.


Revenue, not cuts, solution to budget shortfall

Groups representing hundreds of thousands of Wisconsin taxpayers have sent Gov. Jim Doyle a letter supporting his call to deal with projected budget shortfalls by securing additional state revenue to minimize budget cuts.

Despite recessionary budget difficulties, the state must protect the broad network of services crucial to our constituents. This can be done by implementing a hospital tax, canceling the elimination of the estate tax, and beginning the effort to close corporate tax loopholes.

Signers include the Wisconsin State AFL-CIO and a number of other labor unions; League of Women Voters of Wisconsin; Wisconsin Council on Children and Families; Citizen Action of Wisconsin; Wisconsin Alliance for Excellent Schools; Institute for Wisconsin's Future; and leaders of other organizations including the Wisconsin Alliance of Cities and Disability Rights Wisconsin.

» Letter to Governor Doyle
» Milwaukee Journal Sentinel story


Milwaukee County Board supports corporate disclosure

The Milwaukee County Board recently approved 14-4 a resolution urging more transparent reporting of tax liability and tax reduction methods. Introduced by Sup. Gerry Broderick, the resolution added support to the push for SB367, tax disclosure legislation proposed by Sen. Dave Hansen (D-Green Bay).

»See Broderick’s column in the Small Business Times.


State Bill Would Shine Light on Corporate Tax Secrets

Sen. Dave Hansen(D-Green Bay) speaking while Sen. Bob Jauch (D-Poplar) looks on.

Sen. Dave Hansen(D-Green Bay) speaking while Sen. Bob Jauch (D-Poplar) looks on.

Backed by a lineup of state legislators and elected leaders from cities, counties and school districts, Senator Dave Hansen (D-Green Bay) introduced the Corporate Tax Accountability Act on Dec. 19 at the State Capitol.

Citing a report Wisconsin's Revenue Gap: An analysis of corporate tax avoidance, by the Institute for Wisconsin’s Future, which showed Wisconsin losing $643 million in 2006 through corporate tax loopholes, Hansen called for an end to the tax secrecy that allows such massive corporate leakage. “This bill does not raise taxes,” Hansen stressed. “But it gives all Wisconsin citizens the ability to engage in a well-informed discussion about Wisconsin’s tax code and who is, and isn’t, paying their fair share.”


IWF Director Karen Royster's op-ed on tax disclosure "Bill on tax disclosure is worthy"

Wisconsin is transforming its economy to attract biotech investors, 21st-century service entrepreneurs and talented young people looking for a community that supports economic growth and a quality lifestyle for families. Good education, safe streets, strong transportation, flourishing parks, recreation and culture as well as a broad network of effective community services attract investment and immigration...

Read more of the Milwaukee Journal Sentinel article


Message delivered to Legislature:
Change the school-funding system

Rep. Sondy Pope-Roberts, Middleton, and Sen. Roger Breske, Eland

Rep. Sondy Pope-Roberts, Middleton, and Sen. Roger Breske, Eland, testified before a packed house, Nov. 15, on Senate Joint Resolution 27.

Partners in WAES and their friends from around the state delivered an important message to legislators, Nov. 15 – in the strongest way possible: Wisconsin’s school-funding system is broken, it needs to be thrown out, and the Legislature needs to come up with a better plan by July 1, 2009.

The audience for over six hours of testimony was the Senate Education Committee and the point of the message was support for Senate Joint Resolution 27. Committee chair Sen. John Lehman, Racine, said he expects the resolution to clear both his committee and the Senate. It’s fate in the Assembly is uncertain and no committee hearing has been scheduled.

SJR 27, and its Assembly companion AJR35, were authored by Sen. Roger Breske, Eland, and Rep. Sondy Pope-Roberts, Middleton. Their view of the day’s hearing is available on the Wheeler Report.

Click here for more information, pictures, and testimony from the WAES panel of testifiers.

Read additional coverage from:

Milwaukee Journal-Sentinel
Wisconsin State Journal
WISC-TV, Madison
Wisconsin Radio Network
Waukesha Freeman
Wisconsin Public Radio

The entire hearing can be seen on Wisconsin Eye, the state’s new C-span like network.

Read editorial comments from Ashland Daily Press,
Wisconsin State Journal,
and Spooner Advocate.

Find out what you can do to help.


WAES moving toward independence

For seven years, the Wisconsin Alliance for Excellent Schools (WAES) —one of the rising stars in the school-funding reform effort —has been a project of the Institute for Wisconsin's Future. That long and productive relationship is coming to an end due to WAES success.

The coalition will soon be even more effective as an independent, self-sufficient, membership organization. It will still be the only statewide, broad-based, and diverse player in the reform movement. WAES will continue to concentrate on involving and educating communities around the state and helping people become effective advocates for their children and their education.

With the forming of WAES in 2000, IWF made the transition from researching and talking about school-funding reform to making the issue the basis for a statewide organizing effort. While other organizations suggested tweaking and massaging the formula, IWF pushed comprehensive reform that recognized the needs of every child in the state.

A first step toward an independent WAES was taken, July 30, at a meeting in Wausau. Thirty coalition partners, serving as an interim governing board, talked about everything from dues to a board of directors to the Wisconsin Adequacy Plan, the new school-funding system developed by WAES. The goal is to spin off the “new and improved” coalition early in 2008.

Click here to get the lowdown on the WAES reorganization.


Milwaukee Public Schools advances state tax disclosure proposal

Milwaukee’s school board has advanced a pioneering resolution that could lead to all Wisconsin’s school districts demanding meaningful state tax disclosure legislation.

On Aug. 9, 2007, a committee of the Milwaukee Public Schools Board voted 5-0 to urge the Wisconsin Association of School Board to support comprehensive tax disclosure legislation. The resolution goes to the entire MPS Board on Aug. 30.

The resolution, crafted by MPS Board President Peter Blewett, recognizes that schools are dependent on a reliable stream of adequate state revenue. But as the resolution states, “few members of the public have access to accurate and current information about who actually pays Wisconsin taxes and how much they pay.” Read more....


Click here for the full text of the MPS resolution. (Word doc)


Connect the dots between county shortages and the state budget …

Milwaukee could lose park programs and bus routes. Counties around the state are closing nursing homes and understaffing jail facilities. What does that have to do with the state budget debates? Everything! The state budget fight between the State Senate — which is adding resources for local government —and the State Assembly — which has a slash and burn attitude toward public services —will make all the difference at the local level for the next two years. For a more complete account of the issue, read the Milwaukee Journal Crossroads articles by Karen Royster and Mordecai Lee the county pensions crisis and the impact of state budget issues on Milwaukee County in 2007.


Wal-Mart brags about avoiding Wisconsin taxes

Wal-Mart responded to IWF’s recent criticism of its tax-avoidance by bragging publicly about how effective it is at not paying taxes in Wisconsin. A Wal-Mart spokeswoman said the giant company uses the so-called REIT tax loophole to avoid corporate income taxes from 84 of its 89 state stores.

Wal-Mart’s comments came in response to a column by Mike Ivey in the Capital Times newspaper, which relied on IWF data.

»Read Ivey’s original column.
»See Wal-Mart’s response.
»See IWF’s sidebar on Wal-Mart, published as a part of our Broken Partnerships report.
»See a report on Wal-Mart tax avoidance by Citizens for Tax Justice


Blue skies for Wisconsin taxpayers?
The truth about corporate taxes in Wisconsin

Is Wisconsin a tax haven for corporations? Though it may go contrary to the popular opinion, the answer is Yes. Two new reports by Jack Norman illustrate exactly how easy corporations have it when it comes to taxation in Wisconsin and how the corporate sector is underpaying state and local taxes by more than one billion dollars annually. Between tax exemptions and loopholes, many large corporations that do business in Wisconsin pay hardly any state taxes at all. Meanwhile, across the state public services are being cut and individuals pay some of the highest property and personal income taxes in the country.

View a 5-minute condensed video version of highlights of the IWF presentation.

“Are Wisconsin’s Taxes Too High?” was Norman’s cover story for Isthmus, the Madison newspaper, April 6, 2007.

Just released!
Broken Partnerships
is an IWF report explaining how the business sector underpays taxes by over $1 billio
n.


Growing a stronger Wisconsin:
A citizen’s guide to protecting what we love about our State

The Institute for Wisconsin's Future continues its work to protect public services by engaging citizens in discussion across the state. After success securing public services in Milwaukee County last fall, IWF hit the road to discuss how we can find a fair way to build the revenue needed to protect our public structures, such as parks, schools, police and many more. The IWF presentation is a catalyst for people to discuss what they value and what we can do to make our communities stronger.

If you would like to know more about this presentation or would like to have one come to you contact Joe Fahey at (414) 384-9094 jfahey@wisconsinsfuture.org.

View the PowerPoint presentation A Citizen's Guide to a Strong Community


Wisconsin tax heaven:
The corporate contribution to state and local revenue

IWF Research Director Jack Norman

IWF Research Director Jack Norman made three presentations Dec. 4 in Milwaukee, Madison, and Spring Green.

Contrary to the claims of corporate lobbyists that the state has unreasonably high business taxes, Wisconsin is already a low-tax state for large firms.

And this means the corporate sector is not making a fair contribution to the cost of maintaining public structures of state and local government, from schools to roads to public safety to the environment.

To back up these statements, the Institute for Wisconsin's Future released a mass of data on December 4, 2006, detailing that more than thirty states have higher taxes on corporations and that over 60% of the biggest companies operating in the state paid zero corporate income tax in 2003.

The IWF research made headlines across the state. For sample coverage, see the Wisconsin State Journal and the Associated Press. For sample reaction, see this statement by State Sen. Russ. Decker and this editorial in The Oshkosh Northwestern.

Wisconsin Manufacturers & Commerce, the target of much of IWF’s criticism, responded with this statement. IWF responded to WMC with this statement.

View IWF’s PowerPoint presentation (works best in Explorer Browser) or view as an Adobe .pdf