State Senate Dems unveil stimulus package
David Callender — 1/30/2008 1:28 pm
In response to a softening national economy, majority Democrats in the state Senate today unveiled their own economic stimulus package, which they said would create more than 2,500 jobs in Wisconsin.
The plan, which includes $50 million a year in new spending on road projects and supports a fee increase to fund a commuter rail line in southeast Wisconsin, would be financed by closing a loophole that allows firms that do business in Wisconsin to establish corporate headquarters in Nevada to escape paying taxes here.
Democrats said closing the so-called "Las Vegas loophole" would generate about $90 million in new tax revenues.
"This should not be turned into the usual partisan play that portrays Democrats as tax-hikers," said Senate Majority Leader Russ Decker, D-Weston. "It's time we level the playing field" between Wisconsin businesses and other firms.
The plan is expected to compete for legislative attention with Democratic Gov. Jim Doyle's plan, which calls for increased tax breaks for businesses, particularly those in high-tech and biotechnology fields.
Doyle's plan, unveiled during his State of the State speech last week, emphasizes long-term private investments in Wisconsin through preferential tax treatment, while the Senate plan calls for immediate direct investments in large-scale public works projects.
Decker said his members have not yet taken a position on Doyle's plan and are still awaiting details of the proposal.
"We think it's important to put people to work in Wisconsin right now," Decker said. "If we want to jump-start Wisconsin's economy, we have to have a program that gets the biggest bang for the buck."
The Democratic plan would:
* Increase funding for the state highway rehabilitation program and major highway development program, which Democrats said would "translate to about 2,500 good-paying jobs for our state."
* Increase car rental fees by $13 in Milwaukee, Kenosha and Racine to pay for the KRM commuter rail line. Democrats had supported the plan in the state budget, but it was rejected by majority Republicans in the Assembly.
* Increase child care assistance to middle-income families by $15 million annually. Democrats said many middle-class families "are getting squeezed by increased child care costs because those costs are increasing at about twice the rate of inflation."
* Provide $5 million a year in increased funding for incentive grants for state technical colleges for "emerging occupations" geared toward local business needs. A portion of the money would be set aside specifically to train welders, a high-paying occupation for which there is currently a shortage of workers.
* Provide $8 million a year in increased funding for renewable energy grants and loans.
* Increase financial aid for UW and technical college students by $1.3 million annually.
There was no immediate response to the Democrats' plan from Assembly Republicans or Doyle's office.
David Callender — 1/30/2008 1:28 pm
In response to a softening national economy, majority Democrats in the state Senate today unveiled their own economic stimulus package, which they said would create more than 2,500 jobs in Wisconsin.
The plan, which includes $50 million a year in new spending on road projects and supports a fee increase to fund a commuter rail line in southeast Wisconsin, would be financed by closing a loophole that allows firms that do business in Wisconsin to establish corporate headquarters in Nevada to escape paying taxes here.
Democrats said closing the so-called "Las Vegas loophole" would generate about $90 million in new tax revenues.
"This should not be turned into the usual partisan play that portrays Democrats as tax-hikers," said Senate Majority Leader Russ Decker, D-Weston. "It's time we level the playing field" between Wisconsin businesses and other firms.
The plan is expected to compete for legislative attention with Democratic Gov. Jim Doyle's plan, which calls for increased tax breaks for businesses, particularly those in high-tech and biotechnology fields.
Doyle's plan, unveiled during his State of the State speech last week, emphasizes long-term private investments in Wisconsin through preferential tax treatment, while the Senate plan calls for immediate direct investments in large-scale public works projects.
Decker said his members have not yet taken a position on Doyle's plan and are still awaiting details of the proposal.
"We think it's important to put people to work in Wisconsin right now," Decker said. "If we want to jump-start Wisconsin's economy, we have to have a program that gets the biggest bang for the buck."
The Democratic plan would:
* Increase funding for the state highway rehabilitation program and major highway development program, which Democrats said would "translate to about 2,500 good-paying jobs for our state."
* Increase car rental fees by $13 in Milwaukee, Kenosha and Racine to pay for the KRM commuter rail line. Democrats had supported the plan in the state budget, but it was rejected by majority Republicans in the Assembly.
* Increase child care assistance to middle-income families by $15 million annually. Democrats said many middle-class families "are getting squeezed by increased child care costs because those costs are increasing at about twice the rate of inflation."
* Provide $5 million a year in increased funding for incentive grants for state technical colleges for "emerging occupations" geared toward local business needs. A portion of the money would be set aside specifically to train welders, a high-paying occupation for which there is currently a shortage of workers.
* Provide $8 million a year in increased funding for renewable energy grants and loans.
* Increase financial aid for UW and technical college students by $1.3 million annually.
There was no immediate response to the Democrats' plan from Assembly Republicans or Doyle's office.
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