About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 Scott Drenkard, Wisconsin Plan Cuts Rates, Broadens Bases, Improves State Business Tax Climate 1 (2013)

handle is hein.taxfoundation/ffdhcxz0001 and id is 1 raw text is: FOUNDATION June 3, 2013 No. 372 Wisconsin Plan Cuts Rates, Broadens Bases, Improves State Business Tax Climate By Scott Drenkard On May 28, Wisconsin Representative Dale Kooyenga introduced a bill that reforms numerous elements of Wisconsin's tax code. These reforms would improve the state's ranking in the State Business Tax Climate Index,I which annually compares the states' tax systems on over 100 variables that impact business. If enacted, the plan would move Wisconsin out of the bottom ten states. Representative Kooyenga's proposal expands on Governor Walker's income tax cut which is currently written into the budget being considered, simplifies the code, makes it more neutral to different types of business activity, and trims several odds and ends that have persisted for decades. The result is an Index ranking of 40, up from the current ranking of 43. A full list of provisions is found in the bill's legislative note,2 but major provisions would: * Reduce income tax rates ---.Ta - ble I: -- I nd al-uaI Io n - mc e ---T ax m T es-- u nd e r RR ep r es en ta tiv across the board, while Kooyenga's Plan reducing the number of Current Law Governor's Plan Kooyenga's Plan in 2 brackets from five to three 4.60% > $0 4.60% > $0 4.50% > by 2015 (see Table 1); 6.15% > $14,510 5.94% > $14,510 5.94% > $14 6.50% > $29,020 6.36% > $29,020 7.60% > $319 * Eliminate the Alternative 6.75% > $217,630 6.75% > $217,630 Minimum Tax starting in 7.75% > $3 19,460 7.75% > $3 19,460 tax year 2013; Rates given are for married joint filers * Sunset defunct provisions relating to the now-extinct estate tax pick-up credit; * Recouple depreciation and depletion schedules to the federal standard; * Eliminate or reduce several distortionary business tax credits, with major changes that would: o Eliminate the jobs credit o Make credits for research and development available to passthroughs for 2013, but then repeal the research facilities credit in 2014 o Eliminate film tax credits o Limit the manufacturing and agricultural tax credit e $0 ,510 ',460 ' See Scott Drenkard & Joseph Henchman, 2013 State Business Tax Climate Index, TAX FOUNDATION BACKGROUND PAPER No. 64 (Oct. 9, 2012), 1j;rae~daL n: r art /l N 1N.4V~ bi-sucs x. Yimaue-i-3.Are. 2 Wisconsin Legislative Fiscal Bureau, Memorandum from Bob Lang, Director, to Representative Dale Kooyenga describing Representative Kooyenga's proposed budget amendment and its fiscal effects, May 28, 2013, -- -- - ~ e ~ e -- - - -- - - - -- - - -- - - - -- - - -- - - - -- - - - - -- -- - -- - -------- ------- ------- - ----- 4 h . Fiscal Fact

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most