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Taxes, Regulation and the Cost of Doing Business

Just as Wisconsin must have a 21st century infrastructure to compete in today’s global economy, so too must it have a governmental framework in which society’s needs are measured. These needs must be met effectively and efficiently in a manner which does not adversely affect businesses’ ability to meet customer and market needs. When a strong, efficient infrastructure is in place, businesses are able to generate the jobs, taxes and economic prosperity on which government relies to pay for its services.

Much of Wisconsin’s current tax structure was designed to work for, and capture revenues from, an economy in which wealth was measured based on property and income was generated by industrial production. Land is still important, but in the past 40 years, the percentage of property taxes collected on land used for residential purposes has increased more than 50 percent. At the same time, the percentage of property taxes collected on land used for commercial purposes has dropped from 25 percent to 22 percent. Manufacturing also is important to Wisconsin’s future, but during this same time period, the number of manufacturing jobs in Wisconsin dropped sharply.

On the regulatory front, Wisconsin has made progress in streamlining its permitting procedures without compromising public health and safety or its rigorous environmental protection requirements. As we look forward, we must now focus on updating both our requirements, expectations and performance based upon sound scientific research and the development and adoption of new technologies.

And, while congratulating local units of government for managing with tight budgets in recent years and for finding new ways to collaborate and deliver services more efficiently and effectively, we must also continue to support their ongoing search for better, more cost-effective ways to deliver the essential services.

In short, Wisconsin needs to modernize how it delivers, evaluates the need and pays for public services. And, it must do so in a manner which allows its citizens and businesses the freedom they need to energize and grow the economy.

These are just a few of the issues awaiting Wisconsin’s leaders. The Wisconsin Business Council is starting the discussion today.

 

"While public revenues are necessary to support important governmental services and regulations, we must ensure the taxes and regulations adopted are fair and do not adversely affect the health of our economy or the taxpayers. The discussion we need to have now in Wisconsin is whether or not our existing tax and regulatory framework is appropriate in light of the new challenges and opportunities generated by changing demographics, global economics and significant structural public deficits. The Wisconsin Business Council is committed to leading that discussion."

Joe Fazio
CEO, Commerce State Bank

14 W. Mifflin Street, Suite 314, Madison, Wisconsin 53703 • Phone: 608.252.9245 • Fax: 608.252.9249