Story originally printed in the Tomah Journal or online at www.tomahjournal.com
Published - Monday, August 25, 2008
Vinehout, Hellman contrast tax views
State Sen. Kathleen Vinehout (D-Alma) and Republican candidate for the 92nd Assembly District seat Dan Hellman offered different views of taxation during a Friday luncheon at the Ground Round sponsored by The Tomah Chamber of Commerce Government Affairs Committee.
Vinehout said the state’s $800 million budget deficit will leave the state with some tough decisions. She said the state should review a series of tax credits and exemptions. She said it’s not proven whether many of them fulfill their intended purpose.
“We need a big-picture strategy of what we’re trying to accomplish,” Vinehout said. “What are the goals. What was the original intent? We need to be able to measure whether we’ve attained all these goals.”
She cited the example of a tax credit that encourages movie production in Wisconsin. She said the credit is totally refundable and can be transferred to other companies. She said it isn’t clear whether the credit encourages movie production or benefits the state economically.
“How do we measure that?” Vinehout said. “We need a big-picture strategic plan of what we’re trying to accomplish.”
Hellman said the real issue is the state’s overall tax rate.
“Voters tell me two things — they don’t want more government, and they don’t want higher taxes,” Hellman said. “Every time they hear more government, they cringe.”
Hellman said it’s important that Wisconsin improve its business climate. He defended the idea of tax credits and said they reduce the overall tax burden.
“If a corporation is giving money to the government, it’s not going to the owner, it’s not going to the shareholders, and it’s not going to the employees,” he said.
However, Vinehout said targeted tax credits are often indistinguishable from government spending and simply transfer the burden of paying for necessary services onto everyone else.
“It’s money out of the budget; it’s money we don’t collect,” Vinehout said. “To move toward a revenue stream that more broadly based is going to help the economy.”
Hellman said the economy will be helped by an increase in entrepreneurs.
“I want Wisconsin to be the state where people want to do business,” Hellman said. “We need to have an environment where business wants to locate here.”
Hellman is running unopposed for the Republican nomination in the 92nd District. He face the winner of the Sept. 9 Democratic primary between Curtis Miller and Mark Radcliffe. The incumbent, Terry Musser of Black River Falls, declined to seek re-election.
Vinehout first won election to the state Senate in 2006. She’s up for re-election in 2010.
All stories copyright 2006 Tomah Journal and other attributed sources.