The Corporate Tax Accountability Act

The Institute for Wisconsin's Future recently released an important report, "Wisconsin's Revenue Gap: An Analysis of Corporate Tax Avoidance." Kudos to Senator Dave Hansen (D-Green Bay; yes Virgina, there are Green Bay politicians interested in something other than nativity scenes) for introducing the "Corporate Tax Accountability Act" in response to the report. According to the Cap Times:

The Corporate Tax Accountability Act is aimed at stopping what backers estimate was $1.3 billion in lost state and local tax revenue in 2006 through exemptions, credits and aggressive use of subsidiaries.

For example, three of the largest corporations in the U.S. -- Microsoft Corp., Merck & Co. and Sears Holdings, owner of Kmart and Lands' End -- paid no corporate income taxes in Wisconsin in 2005, according to information released at a Capitol news conference today . . .

A report from the Milwaukee-based Institute for Wisconsin's Future, released today, said that "corporate tax leakage" is shifting the tax burden onto small business and working families. It's also putting pressure on local government and school districts to make tough decisions.

"The resulting gap in income is creating budget shortfalls which can only be resolved by cutting services, raising property taxes or both," the report said.

My understanding is that IWF will, if requested, provide communities with a local analysis of tax accountability. At the common council's first meeting in January I plan to ask Mayor Tower to schedule an IWF tax accountability presentation as a workshop item.