GOP state senators propose income tax cut, other initiatives
(Published Wednesday, January 24, 2007 10:45:37 AM CST)
A d v e r t i s e m e n t
By Scott Bauer Associated Press
MADISON, Wis. - Don't start spending any of the $65 million income tax cut proposed by Republicans in the state Senate on Tuesday just yet.
With Democrats in the majority, and Gov. Jim Doyle not endorsing the plan, the likelihood of it going anywhere this year is slim.
But other portions of the $115 million economic development package proposed by Senate Republicans that mesh more closely with what the governor has put forward stand a better chance.
State Sen. Ted Kanavas, R-Brookfield, said he was optimistic that the Democratic majority in the Senate and Doyle would support at least parts of the 10-bill package.
Doyle spokesman Matt Canter said the governor looked forward to working with lawmakers on a number of economic development initiatives, but his own proposals focusing on training workers for the high-tech market, investing in stem cell research and renewable energy were a priority.
Doyle is also proposing a series of tax credits to attract venture capital investment and support for startup companies, Canter said, as well as a partnership with the University of Wisconsin to foster and support entrepreneurs.
As for the income tax proposal floated by Republicans, Canter said, "The governor's committed to not raising income taxes."
The proposed 1 percent income tax reduction would take effect for the current tax year, reducing the lowest rate from 4.6 percent to 4.554 percent and the highest rate from 6.75 percent to 6.683 percent.
The proposals come as the state faces a projected $1.6 billion shortfall in the next two-year budget. Kanavas said there are places in the state budget where savings can be found to help pay for the income tax cut, including efficiencies in information technology and program cuts that he did not specify.
Sen. Carol Roessler, R-Oshkosh, said the state also could save money by making its economic development programs more efficient.
This is the third package of economic development proposals put forward by Kanavas and others. Kanavas said six of the 13 so-called Invest Wisconsin bills introduced last year were enacted into law.
This year's package also includes a bill that would provide up to $4 million for nanotechnology initiatives. Kanavas said the money would jump-start a cooperative agreement between the University of Wisconsin-Eau Claire, UW-Stout, and the Chippewa Valley Technical College to attract business, help entrepreneurs and prepare the area's work force for jobs related to the technology.
Also proposed is a $2.5 million tax credit over the next two years designed to attract more investment in nanotechnology, the science of manipulating tiny particles.
If passed, the proposal would put the Chippewa Valley region at the forefront of nanotechnology efforts in the country, UW-Eau Claire Chancellor Brian Levin-Stankevich said.
Other parts of the package would:
- Expand by $25 million an existing tax credit program for capital investment in Wisconsin companies. Doyle also supports expanding the program.
- Eliminate the tax on capital gains if the gains are reinvested in a Wisconsin-based business for at least one year.
- Provide a tax credit to businesses that pay for continuing education of employees, provided that the person attends a Wisconsin-based school.
Announcement of the proposals came at a news conference attended by about 90 business leaders and others from the Chippewa Valley, as well as representatives of the technical college and UW campuses in the area.
