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9/28/2009
Van Roy: Assembly GOP has jobs agenda

Few have been left untouched by the worst economic recession we've seen in a generation. With businesses struggling to survive, families are facing record levels of unemployment resulting in an unprecedented number of home foreclosures. According to the Department of Workforce Development, Wisconsin has lost 130,000 jobs over the last year. Ask anyone on the street what they are concerned about most and the answer is overwhelmingly "jobs" or the "economy."

My highest priority this session is putting our state's economy back on track and getting people back to work. To achieve that goal, Assembly Republicans created the Wisconsin Jobs NOW Task Force. Members of the task force traveled around the state during the spring and summer and held listening sessions with actual job creators - our local businesses who know first hand the day to day struggles of running a business and what it takes to stay competitive and keep their workers employed. The first of these meetings was held right here in Green Bay.

Based on the feedback the task force received from these listening sessions, my Assembly Republican colleagues and I have announced our first batch of common-sense, real-world reforms that will help our businesses retain and create new jobs as well as attract out-of-state job-creators back to Wisconsin. If enacted, these proposals would begin to make a difference immediately. I am extremely hopeful that the Democrats who are in the majority will work with us in making our Jobs NOW economic agenda a reality since their own fall legislative agenda doesn't have any proposals to address the overwhelming need that our citizens and our state have for job creation and increased economic development.

Components of the Assembly Republican Jobs NOW agenda include:

Jobs Tax Credit: Wisconsin has a Jobs Tax Credit on the books that makes employers who create new jobs eligible for a tax credit equal to up to 10% of the wages paid to an eligible employee and/or the amount of costs incurred for training. Unfortunately, under the budget passed by Democrats, employers can't receive the credit until 2012. Our legislation would make employers eligible for the credit now giving them an incentive to create new jobs right now when unemployment is high and jobs are desperately needed.

Recruit and Retain Jobs: Wisconsin is losing jobs to other states, not just other countries. Thomas Products left Sheboygan and took jobs to Louisiana. Briggs and Stratton left Jefferson and Watertown taking jobs to Georgia. General Motors left Janesville taking jobs to Michigan. In a search for places to expand, Johnson Controls chose Michigan over Wisconsin, and IBM chose Iowa. These are just a few of the losses Wisconsin has experienced in the last year which is a trend that we need to work hard to turn around.

Our legislation would require the Department of Commerce to submit a plan to the Joint Committee on Finance detailing its business retention methods along with a plan for identifying local businesses seeking to expand or relocate elsewhere, as well as businesses looking to expand or relocate in Wisconsin. Additionally, Commerce would be required to develop a Rapid Response Team that could respond within 24 hours of being notified of employers considering leaving Wisconsin or expanding here.

Health Insurance Flexibility: Wisconsin law currently prohibits small businesses from purchasing an out-of-state health insurance plan even if it would save them money. Our legislation would allow businesses to purchase health insurance coverage across state lines thus creating competition and giving employers more choices to find affordable health care at a cost-savings that would allow them to hire more employees.

Wisconsin Jobs Investment Act: Wisconsin is ranked the 9th worst state in the nation in which to do business and one of the reasons has to do with our poor ranking in access to capital. Due to the credit crunch with financial institutions, businesses are turning to investors for capital. A new state budget provision provides investors with a capital gains exclusion of up to $10 million for certain long-term re-investments that are made in a Wisconsin business, but it won't apply until 2011. In the meantime, our investors will take their money and the jobs it creates elsewhere. Our unemployed workers simply cannot wait until 2011 for new start-up businesses and the jobs they provide. Our legislation would make the tax exclusion effective now giving investors a reason to support job-creation right here in Wisconsin.

Small Business Expense Flexibility: Our legislation would double the amount an employer may claim for property placed in service as an expense deduction from $25,000 to $50,000, coming only slightly closer to the federal limit of $133,000. Putting more money in the hands of small business owners will allow them to hire more employers or purchase new equipment thus stimulating the economy.

Banning Secret Tax Increases: Over the years, the Department of Revenue has imposed new taxes or creatively interpreted current tax laws in very imaginative ways costing taxpayers $100 million, all without legislative approval. Only the legislature has the constitutional authority to impose a tax, so our legislation would ban this kind of bureaucratic overreaching and restore legislative accountability so employers aren't on the hook for taxes they never knew existed.

Sunset A Variety of Tax Hikes: In their budget, Democrats imposed a new $107.6 million tax on all telephone owners, a $242.5 million tax increase on individuals' savings and investments, and a new $215 million tax on job-creators. Our proposal would sunset these new taxes and tax increases, and put the money back into your pockets where you need it to pay for daily living expenses like mortgages, fuel, and food and to save for college and retirement.

Putting our economy back on track, getting the unemployed back to work, and helping our hometown businesses survive this recession are not partisan issues. The proposals I've outlined here are very specific improvements that can make a real difference immediately in accomplishing these goals. I look forward to working with my legislative colleagues on these very important issues. Wisconsin workers and employers need solutions now.

Karl Van Roy is a Republican and represents the residents of the 90th Assembly District.

COMMENTS

Tax breaks and tax reductions are great, but the real problem is spending. Let us get back to a real balanced budget, no smoke and mirrors, and CUT the size and cost of government. My guess is we could cut WI government by 30% without materially affecting services, then cut those services more. Expect greater productivity from work force, and expect government to do less. It would be better to plan as I have described, than to wait until such decisions become a dire emergency. The country is broke, and with the cost of governments at all levels approaching 2/3 of our economy, we need government to go on a diet.

Ken Van Doren (Wed Sep 30 12:12:58 2009)

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