Wanted: Professionals to Work in a Tax Hell
Lasee’s Notes
A poll of state business executives, many of whom employ more than 500, found a large increase in the number of companies that cannot find qualified workers to fill open jobs. Nearly 60% said they are having trouble hiring professionals, up from 40% last year. Nearly 30% ranked this labor shortage as their top business problem.
The report also found that in order to stay competitive many businesses are expanding their operations outside of Wisconsin. Nearly 70% of the businesses plan to expand in another state or country this year. This growth represents millions of dollars in lost opportunities for our economy. Not to mention thousands of jobs.
Why are these businesses choosing to invest more out of state? It is not only because of the lack of professionals and skilled workers.
With our tax burden hovering near the top 5 nationally for many years, it is no secret that if you have money or the ability to earn money you can keep more of it elsewhere. So if Wisconsin companies want to lure professionals away from lower taxing states or keep them here often they have to pay them more to make up the difference (10-15% more in many cases). This is the tax premium. And this is only half of the story.
The rest of the story is that as many wealthy, higher income professionals leave, it is likely that they are being replaced by middle to lower income people. Leading to Wisconsin becoming a state where the demand for government services outpaces the citizens’ ability to pay.
Personal income grows faster in states which have lowered their tax burden over time. They have more economic activity and more opportunity for the citizens of those states. In states with high tax burdens – like Wisconsin – the government sector grows as fast as or faster than the private sector. Thus businesses and people look to move themselves or their operations to states where they can keep more of the money they earn.
Another major issue facing Wisconsin is the regulation that businesses and people have to live with here.
Wisconsin can do better.
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Lasee’s Notes is a weekly column by Representative Frank Lasee, 2nd Assembly District, covering events in the Legislature and statewide.
A poll of state business executives, many of whom employ more than 500, found a large increase in the number of companies that cannot find qualified workers to fill open jobs. Nearly 60% said they are having trouble hiring professionals, up from 40% last year. Nearly 30% ranked this labor shortage as their top business problem.
The report also found that in order to stay competitive many businesses are expanding their operations outside of Wisconsin. Nearly 70% of the businesses plan to expand in another state or country this year. This growth represents millions of dollars in lost opportunities for our economy. Not to mention thousands of jobs.
Why are these businesses choosing to invest more out of state? It is not only because of the lack of professionals and skilled workers.
With our tax burden hovering near the top 5 nationally for many years, it is no secret that if you have money or the ability to earn money you can keep more of it elsewhere. So if Wisconsin companies want to lure professionals away from lower taxing states or keep them here often they have to pay them more to make up the difference (10-15% more in many cases). This is the tax premium. And this is only half of the story.
The rest of the story is that as many wealthy, higher income professionals leave, it is likely that they are being replaced by middle to lower income people. Leading to Wisconsin becoming a state where the demand for government services outpaces the citizens’ ability to pay.
Personal income grows faster in states which have lowered their tax burden over time. They have more economic activity and more opportunity for the citizens of those states. In states with high tax burdens – like Wisconsin – the government sector grows as fast as or faster than the private sector. Thus businesses and people look to move themselves or their operations to states where they can keep more of the money they earn.
Another major issue facing Wisconsin is the regulation that businesses and people have to live with here.
Wisconsin can do better.
----------------------------------------------------------------------------------
Lasee’s Notes is a weekly column by Representative Frank Lasee, 2nd Assembly District, covering events in the Legislature and statewide.
posted by John Q Cheesehead | 12:40 AM
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