Wisconsin Left with Little to Show for Nearly Eliminating Requirement that Manufacturers Pay Income Tax

Wednesday, May 3, 2017 at 7:40 AM by

The number of manufacturing jobs in Wisconsin has grown more slowly than the national average, despite a major new tax break that nearly wipes out income taxes for manufacturers.

The number of manufacturing jobs in Wisconsin grew by 1.4% between September 2013 and September 2016, less than the national rate of 2.1%. These figures are based on the Quarterly Census of Employment and Wages, the “gold standard” measure of jobs figures. September 2016 is the most recent month for which jobs figures are available from the QCEW; that month’s figures are preliminary. The manufacturing tax break started with tax year 2013 and was phased in over a four-year period.

Manuf-jobs

The slow growth of manufacturing jobs in Wisconsin is notable because over that same period Wisconsin gave manufacturers a tax break worth $457 million, through a tax credit that nearly wipes out income tax liability for manufacturers and some other businesses. But lawmakers didn’t require manufacturers to create any jobs to receive the tax break – in fact, even manufacturers that are laying off employees or sending Wisconsin jobs overseas can receive the tax cut. Read more

Categories: Blog, income taxes, jobs, STATE TAXES | Comments Off on Wisconsin Left with Little to Show for Nearly Eliminating Requirement that Manufacturers Pay Income Tax

Uneven Progress for Wisconsin Workers

Monday, September 5, 2016 at 8:26 PM by

The latest annual State of Working Wisconsin report has some positive findings about recent trends for Wisconsin workers; however, it also shines a light on some ongoing challenges, and it concludes that Wisconsinites “all need stronger policy to support broadly shared prosperity.”

COWS (formerly known as the Center on Wisconsin Strategy) issues this report every Labor Day weekend. Because it’s an illuminating report, and Labor Day is an important holiday, I want to share the major findings – while minimizing my own labor this weekend. In that spirit, I am passing along several excerpts from the COWS press release.

On the plus side of the ledger, the report describes the positive effects in Wisconsin of the national economy’s gradual rebound from the Great Recession:

“The state has more jobs than ever before, unemployment rates have fallen to pre-recession levels, and workers that want full-time work are having an easier time finding it.

Read more
Categories: Blog, economy, income inequality, jobs, Racial & ethnic disparities | Comments Off on Uneven Progress for Wisconsin Workers

Wisconsin’s Electorate and Economy: What the National Media Should Know

Tuesday, March 29, 2016 at 10:28 AM by

National attention has turned to Wisconsin because our presidential primary on April 5th is the only one in the next week. It’s also a significant primary because the percentage turnout is likely to be higher than in any other state since the New Hampshire primary.

For reporters and others who are trying to understand some of the demographic, economic and political context for the April 5th election, we’ve pulled together a variety of facts about Wisconsin and how it compares to other states.  Here are a few highlights from that data: Read more

Categories: economy, EDUCATION, income, income inequality, jobs | Comments Off on Wisconsin’s Electorate and Economy: What the National Media Should Know

Paying for Job Reductions: The Unreported Story of a Ballooning Tax Credit

Tuesday, December 8, 2015 at 8:44 PM by
An uncapped Wisconsin corporate tax credit is expected to balloon to $279 million in the next fiscal year, more than twice the original cost projection.
Categories: Blog, corporate tax, economic development, jobs, JOBS & THE ECONOMY, tax expenditures, taxes | Comments Off on Paying for Job Reductions: The Unreported Story of a Ballooning Tax Credit

The State of Working Wisconsin 2015

Monday, September 7, 2015 at 9:00 AM by

A new report issued in conjunction with the Labor Day weekend by COWS provides a thorough examination of Wisconsin job numbers, wages, poverty, and job quality, and it provides a sobering assessment of how working people in Wisconsin are doing:

Wisconsin faces slow growth, extreme racial disparity in unemployment, long-term stagnation in wages, and one-fourth of workers struggling in poverty-wage jobs.” 

The new COWS report – The State of Working Wisconsin 2015 – illustrates that as the national economy has gradually rebounded following the Great Recession, Wisconsin’s job growth has lagged behind.  COWS’ analysis concludes that “if Wisconsin had enjoyed the same rate of job growth as the rest of the nation across the course of the recovery, the state would have 90,000 more jobs today.”  The national growth rate from January 2011 through June of this year was 60% faster than the job growth Wisconsin experienced during that time..  Read more

Categories: Blog, economy, income, jobs, poverty | Comments Off on The State of Working Wisconsin 2015

Tax Cuts Haven’t Done Much to Boost Job Growth in Wisconsin or Other Tax-Cutting States

Tuesday, June 9, 2015 at 9:50 AM by

More evidence is piling up that states that made big tax cuts in recent years – including Wisconsin – are failing to keep up with the rest of the country when it comes to job growth. Read more

Rein in Tax Breaks that Aren’t Tied to Job Creation

Tuesday, May 26, 2015 at 7:29 PM by

There’s been a lot of talk in Wisconsin over the last couple of weeks about the need to ensure that tax breaks and loans awarded by Wisconsin’s economic development agency are limited to businesses that are creating jobs and fulfill their job growth commitments.  Yet almost no attention has been paid to the fact that the state’s largest tax credit for corporations is ballooning in cost and is distributed to businesses operating in Wisconsin regardless of whether they are expanding or slashing their workforce in our state. Read more

“Right to Work” Bill Would Suppress Wisconsin’s Already Anemic Wages

Monday, February 23, 2015 at 7:32 PM by

Though researchers disagree on the effects of “right to work” legislation on the number of jobs, what is quite clear is that such laws suppress wages.  Now that legislative leaders have suddenly put a so-called “right to work” (RTW) bill on a very fast track, I hope legislators will take a careful look at a couple of recent studies that examine the economic effects and warn against following the path of the states that have approved RTW laws

A recent report by Dr. Abdur Chowdhury, who teaches economics at Marquette, reached the following conclusion about the effects on Wisconsin income and state taxes:  

The potential net loss in direct income to Wisconsin workers and their families due to a RTW legislation is between $3.89 and $4.82 billion annually. Using a conservative estimate of an impact multiplier of 1.5, the total direct and induced loss of a RTW legislation is estimated between $5.84 and $7.23 billion annually. Read more

Categories: Blog, economy, income, jobs, JOBS & THE ECONOMY | Comments Off on “Right to Work” Bill Would Suppress Wisconsin’s Already Anemic Wages

By Targeting Unions, Lawmakers Risk Lowering Wages for Workers

Tuesday, December 9, 2014 at 9:06 AM by
Unions raise worker wages.

Unions raise worker wages.

Weakening unions will be a top priority for state lawmakers when they next meet in January, according to new statements by legislative leaders. Unions help workers achieve higher wages, and limiting unions’ abilities to advocate for workers could make it harder for some families to climb the economic ladder.

Unionized workers earn more in wages and other compensation than non-union workers who are otherwise the same in education, industry, age, and other factors. Union workers earn $1.24 more per hour, or 13.6% more than other similarly-situated workers who are not in unions, according to an 2012 analysis by the Economic Policy Institute. For a full-time worker, that wage difference adds up to nearly $2,600 per year.

In addition to earning more money, union workers are better off than their counterparts with regards to health insurance, retirement, and paid time off. Union workers are more likely to:

  • have employer-sponsored health insurance, including coverage after retirement;
  • have smaller health insurance deductibles;
  • have lower health insurance premium costs;
  • have a pension; and
  • have more paid time off.
Read more
Categories: Blog, ECONOMIC SECURITY, jobs, JOBS & THE ECONOMY | Comments Off on By Targeting Unions, Lawmakers Risk Lowering Wages for Workers

Cutting Taxes on Rich, Raising Them for Others Won’t Boost Wisconsin Economy

Tuesday, September 30, 2014 at 3:45 PM by

The best way to create jobs and build a broad-based prosperity in Wisconsin is to invest in excellent schools, safe communities, and a solid transportation network.

But a new report released today takes a different approach, claiming that giving big tax cuts to the rich and raising taxes for others would help the Wisconsin economy. The report, released by the conservative Wisconsin Policy Research Institute, repeats the myth that tax cuts create jobs, despite growing evidence to the contrary.

The report advocates changing the state’s tax mix to rely less on the income tax and more on the sales tax, a change the group says would boost the state’s economy. But what the report fails to mention is that the result would be big tax cuts for people with the highest incomes and higher taxes for everyone else. If Wisconsin eliminated the income tax and raised the sales tax to make up for the resulting revenue loss, the top 1% of earners in Wisconsin – a group with an average income of $1.1 million – would get a tax cut of a whopping $44,000 on average. Read more

Categories: Blog, income taxes, jobs, sales tax, taxes | Comments Off on Cutting Taxes on Rich, Raising Them for Others Won’t Boost Wisconsin Economy