Economic Summit II - Remarks and Speeches

Wisconsin's Economy at the Crossroads:
Building Higher Paying Jobs for the Future

November 26-27, 2001
Midwest Express Center, Milwaukee

Protecting Our Jobs and Strengthening Our Economy
Assembly Speaker Scott R. Jensen
November 27, 2001

Building the Workforce of Tomorrow

Higher Education Tax Credit (Assembly Bill 320) This bill provides employers who pay the tuition costs for their workers' higher education a tax credit equal to 50 percent of those tuition costs. This tax credit creates educational opportunities where none existed before and doubles the taxpayers' investment in education by leveraging a dollar-for-dollar match in assistance from the private sector. This tax credit is especially important for helping workers displaced by the sluggish economy to get the skills and training they need for jobs in the ever-changing economy and marketplace. Assembly Bill 320 passed the state Assembly by a 73-25 vote on October 4, 2001.
Apprenticeship Tax Credit (Assembly Bill 555) This bill was recommended by the Special Legislative Council Study Committee on the Labor Shortage and is meant to alleviate the shortage of skilled trade workers in the state's construction and manufacturing sectors. This business-endorsed and labor-supported tax cut provides employers with a partial tax credit for the wages paid to an apprentice workers. Assembly Bill 555 passed the state Assembly by a 54-42 vote on October 23, 2001.

Saving Wisconsin Jobs

Loan Guarantees for Wisconsin Air Carriers (Assembly Bill 576) Midwest Express and Air Wisconsin have over 5,600 employees in the state. The events of September 11th have put all of those jobs at-risk. President Bush and Congress have responded with $15 billion in direct aid and loan guarantees for our nation's air carriers. However, that may not be enough. At the request of Governor McCallum, our plan would provided Wisconsin-based air carriers with up to $10 million in loan guarantees to get them back on their feet. Assembly Bill 576 passed the state Assembly by a 57-35 vote on October 25, 2001.
Repeal of the Jobs Tax (Assembly Bill 380) Our present tax code rewards Wisconsin companies that add jobs in other states while penalizing those that add jobs here. By taxing only corporate income derived from sales, we repeal this jobs tax and remove a powerful disincentive to job creation in Wisconsin. A 1999 academic study determined that adopting this legislation would increase the number of manufacturing jobs by 2.9% (18,000) and non-manufacturing employment by 2.4% (49,000). Assembly Bill 380 passed the state Assembly by a 70-26 vote on October 30, 2000.

Keeping Our Economy Growing

Certified Capital Companies (Assembly Bill 579) For many emerging Wisconsin companies with high growth potential, the main obstacle to future progress is access to venture capital. Two years ago, the state created the Certified Capital Companies Program (CAPCO). Under this program, insurance companies would be eligible for up to $50 million in tax credits for the investments they make in Wisconsin's small businesses. This legislation would add another $100 million in tax credits to expand this popular program. Assembly Bill 579 passed the state Assembly by a 69-29 vote on November 6, 2000.
Incentives for Expanded Power Generation (Assembly Bill 584) In the new economy, an adequate supply of power at an affordable rate will be a critical component of our state's economic development strategy. Unfortunately, the distribution of shared revenue to local governments provides few incentives for communities to host power plants. This legislation rewards municipalities and counties where power plants are located by essentially doubling the aid they receive from the state as part of the shared revenue program. Assembly Bill 584 passed the state Assembly by a 96-2 vote on November 6, 2001.
Repeal of Estate Tax (Assembly Bill 605) A provision within the federal tax relief package effectively re-imposes the estate tax on those Wisconsin citizens who pass away between January 2002 and January 2007. Assembly Republicans successfully led the effort to postpone the start date of this new tax for one year. Permanently repealing this tax will cut taxes by $475 million over the next five years for Wisconsin families and in doing so will make it easier for family-owned businesses to transfer their companies to their children. Assembly Bill 605 received a public hearing before the Assembly Tax and Spending Limitations Committee.