July 18, 2018 at 6:00 p.m.
DOR secretary talks decreased tax burden, upcoming tax holiday
DOR secretary talks decreased tax burden, upcoming tax holiday
"One thing we want people to be aware of is that Wisconsin's tax burden is going down and now we're a very competitive tax state," Chandler said. "I know that's been an issue for many years, the fact that we were a high tax state, a top 10 heavily taxed state and all that. We're now .3 percent below what the national average is for our total state and local tax burden."
In 1995, Wisconsin ranked fourth in the country for total tax burden. By 2015, the most recent year figures were available from the U.S. Census Bureau and Bureau of Economic Analysis, the state had dropped to No. 21.
"It's been an issue for a long time," Chandler said. "We used to be referred to as a 'tax hell.' But as a result of income tax cuts and property tax changes, we've seen a lot of improvements. One of the things we're trying to do is let people know that we have improved a lot in that area."
Despite the cuts to taxes, the state is not seeing a decrease in overall revenue, he added.
"Fortunately, we've got a good economy and I think those two kind of work together. One of the things that people used to say held us back was our high tax rate," Chandler explained. "People would say that you've got a great education system, you've got a great quality of life, great workforce and all that, but your taxes are too high. And some people would say your regulations are sometimes too burdensome, so we've really tried to address both of those things."
A solid sign that the state's economy has recovered nicely from the 2007-09 recession is unemployment is holding at 2.8 percent statewide, he added, noting there is evidence that people who have not been seeking employment for various reasons are now reentering the workforce.
"As we look around, it's good everywhere in the state, every county except for three is below 4 percent unemployment," Chandler said, adding that he is hearing from employers who are finding it challenging to find enough workers to fill positions.
"That is one of the governor's initiatives and we were talking about that at the technology council meeting out at the tech college," Chandler said. "The governor has really been pushing career planning starting at the K-12 schools, pushing programs at the technical colleges that get people ready for the workforce, pushing things at the university system that will generate a climate where we're producing research that will benefit businesses and get them to start up; trying to get all those things across the board."
One of the challenges that was discussed at the council meeting was finding ways to get people to move to Wisconsin, he said. Some of the factors cited included affordable housing, good commuting times, great parks as well as the schools.
Another initiative that Walker has been pushing is funding training at the technical college level for budding entrepreneurs. Nicolet College has received a grant for the first two years of the program and Chandler said this is also helping create jobs.
"The Wisconsin Technology Council is very big on that, getting funds available that can help start-up businesses," he said. "And we've seen increased activity in that area with more and more businesses starting. The way I look at it, the way we try to do things in this administration, there are all kinds of things you should be doing to get a strong economy is to be encouraging our well-established businesses to stay here and grow here. We also want to be encouraging small, start- up businesses and everything in between."
He cited the Foxconn plant being built in southeastern Wisconsin that will receive $3 billion in tax breaks and other subsidies over the next 15 years from the state as another shot in the arm for the state's economy.
"We think that is going to provide great benefits that will ripple all the way through the state," Chandler said. "I know some people are saying that is down in southeastern Wisconsin, is that really going to help elsewhere? We think it's really going to create jobs there, but as the supply network radiates out from that, there's going to be businesses all over the state that will be benefitting. Construction businesses at first, then the supply network the way things typically work with projects like that, suppliers are located near the business and you'll see rings going out, so you'll see that help things throughout the state."
Chandler said many state agencies, including the DOR, have worked to streamline regulations and procedures that cause businesses to wait long periods of time before making an addition to their operations or for an audit to be completed.
"I think one of the set of concerns that we heard from businesses back when this administration came in in 2011 was your taxes are too high, your regulations are too burdensome, not so much the levels you had to go through, but in terms of the time it took to get a permit," he said. "A big push has been to speed things up, get things to work more quickly, whether it's environmental permits, whether it's stuff we do at the Department of Revenue, we audit businesses. One of the things we hear is that audits take a long time sometimes. We've put a push on getting things to move faster."
Chandler said the emphasis under the Walker administration is to have state agencies like DOR and DNR work together to help attract more businesses to locate in Wisconsin.
"We know we have to have sensible environmental regulations, but we should get things done as quickly as possible," Chandler explained. "We have to do tax audits, but do them in as customer-friendly a way as you can."
Another way the Walker administration is working on cutting taxes is the upcoming sales tax holiday that will run from Aug. 1-5 on clothing, computers, computer supplies and school supplies.
"We ended the last fiscal year with a little more money then we had expected because the economy was doing well and part of it was trying to manage government as well as possible," Chandler said. "So the thought of the governor and the legislature was use some of that for the child sales tax rebate, which we just finished, which is $100 for each child under 18, and then the sales tax holiday. The idea was, hey, those are the families that could use a little bit of help with their purchases and $100 a kid helps out. It helps people as they are dealing with the back to school stuff."
The sales tax holidays applies to any purchase in the allowable categories, not just those made for back to school, he added.
Chandler also said the state will take advantage of a recent U.S. Supreme Court ruling that will allow states to collect sales tax on online purchases. Chandler said that Walker has said he will propose cuts in other taxes to offset this so that it doesn't equal a tax increase. However, the governor has not yet said which taxes would see the cuts.
Jamie Taylor may be reached via email at [email protected].
Comments:
You must login to comment.