Jobs for the Future

WMC: CELEBRATING 100 YEARS OF WINNING FOR BUSINESS!

1911-2011

JOBS FOR THE FUTURE

I
t is time to act in bold ways to improve Wisconsins business climate and create jobs! The quality of life we enjoy in Wisconsin hinges on assuring a strong economy with a growing job base. The national economy will recover, and there are signs that the turnaround has already begun. The question is, will Wisconsin businesses grow and expand in our state, or look elsewhere when it comes time to add new jobs? The answer lies in how competitive a business can be if they grow here versus another state. The relative level of taxation and regulation makes a difference. These kinds of government-imposed costs are collectively known as the business climate (see attached comparison to highly competitive states). Unfortunately, Wisconsins business climate is rated low on most national surveys. We must act to transform the Wisconsin business environment to create jobs! States ranked with a more robust business climate have: Tax systems that are low, fair, and simple to administer. Business-friendly regulatory systems that issue needed permits quickly and efficiently. Fair and predictable civil justice systems. Aggressive programs, which bring together the resources of government and education to assist existing businesses with expansion, as well as recruiting new businesses. All Wisconsin citizens have a stake in improving the Wisconsin business climate. A strong, free-market economy provides the tax base necessary to support governments role in educating, building infrastructure, protecting the environment, and caring for the needy. One of the top priorities for government officials at all levels must be to implement policies that foster private business growth, and improve Wisconsins overall business climate to create jobs. Private business is the engine of prosperity, not government. We must position Wisconsin to lead the national recovery, or risk further stagnation and decline. Three game-changing priorities are the key to this transformation. Adopting these priorities, and taking actions to implement them, will demonstrate that Wisconsin is serious about becoming the most competitive state in the nation.

Its time to improve Wisconsins business climate and create jobs!

LIVING WITHIN OUR MEANS

Controlling the growth in government spending means lower taxes for everyone. That puts more money in consumers pockets, and enables businesses to create more jobs for our families. We need to limit government spending and provide tax relief for individuals and businesses. That starts by: Limiting Government Spending Put limits on government spending increases at the state and local level, and set aside money for a rainy day fund. Balancing the State Budget Balance the State budget under Generally Accepted Accounting Principles. Restoring Fiscal Integrity Prohibit the raiding of separate, segregated funds with dedicated revenue streams to fund spending on unrelated programs. Cutting Taxes Reduce the top personal and corporate income tax rates, and make them uniform to make Wisconsin more competitive with other states that are attractive to business. Restore the 60 percent exclusion for capital gains. Reduce other taxes when resources become available.

REDUCING UNNECESSARY REGULATION

When employers are burdened with unnecessary regulation, it costs us jobs. Fair regulations allow us to prosper; unfair regulations and regulatory delays lead to slower growth and higher unemployment. We need to reform Wisconsins regulatory system, and eliminate unnecessary delays in the permitting process. That starts by: Harmonizing Regulations Ensure state regulations are in line with federal regulations, and with those in competitive states. Streamlining Permitting Eliminate unnecessary delays in the permitting process that impede economic development. Establishing a Pro-Jobs Culture Change the command and control culture within state regulatory agencies to a culture of actively helping businesses get necessary permits encouraging economic growth and job creation. Improving Public Accountability Improve public accountability by ensuring that elected officials are ultimately responsible for approving new regulations; and that such regulations are explicitly authorized by the legislature.

ENSURING JUSTICE FOR ALL

A fair legal system provides a stable climate for job creation. But, frivolous lawsuits and other lawsuit abuse drive businesses, and jobs, out of our state. We need to ensure a proper balance of fairness and predictability in our legal system. That starts by: Reforming Product Liability Laws Enact comprehensive product liability reform to create reasonable defenses where products are altered or misused, and to protect retailers. Limiting Punitive Damages Limit punitive damage awards to cases where someone actually intended to cause harm. Eliminating Joint and Several Liability Eliminate joint and several liability so that a defendant is only required to pay their proportional share of a damage award. Establishing Standards for Expert Testimony Require that expert testimony be based on sound science and well established theories.

BENCHMARKING SUCCESS
COMPARING WISCONSIN TO HIGHLY COMPETITIVE STATES
Florida Population Growth 2000 2007 1 Employment Growth % 1998-2008 2 High Tech Employment Per 1000 Workers 3 Union Membership % of Total Employment 2 State and Local Tax as % of Income 4 Per Capita Income Tax (Individual) 4 Per Capita Income Tax (Corporate) 4 Average Electric Bill for Industrial Customers 5 Per Capita Defense Spending 6 Per Capita Venture Capital Investment 7 Regulatory Environment 8
1 2 3

Georgia
% / Rank

North Carolina
% / Rank

Texas
% / Rank

Utah
% / Rank

Virginia
% / Rank

Wisconsin
% / Rank

% / Rank

13.7% / 7
% / Rank

16.0% / 4
% / Rank

12.2% / 9
% / Rank

14.1% / 6
% / Rank

18.0% / 3
% / Rank

8.6% / 15
% / Rank

4.3% / 30
% / Rank

20.0% / 7
# / Rank

11.6% / 20
# / Rank

11.3% / 21
# / Rank

19.0% / 8
# / Rank

23.8% / 5
# / Rank

13.8% / 17
# / Rank

5.8% / 39
# / Rank

40.97% / 29
% / Rank

49.14% / 19
% / Rank

43.95% / 24
% / Rank

55.75% / 15
% / Rank

57.22% / 13
% / Rank

90.95% / 1
% / Rank

34.10% / 33
% / Rank

5.9% / 40
% / Rank

4.4% / 47
% / Rank

3.0% / 50
% / Rank

4.7% / 46
% / Rank

5.8% / 41
% / Rank

3.7% / 49
% / Rank

14.3% / 14
% / Rank

10.0% / 38
$ / Rank

10.3% / 32
$ / Rank

10.5% / 29
$ / Rank

9.2% / 45
$ / Rank

11.0% / 19
$ / Rank

9.8% / 41
$ / Rank

11.6% / 11
$ / Rank

$0 / 44
$ / Rank

$924 / 23
$ / Rank

$1,111 / 12
$ / Rank

$0 / 44
$ / Rank

$960 / 18
$ / Rank

$1,330 / 8
$ / Rank

$1,131 / 13
$ / Rank

$131 / 31
$ / Rank

$107 / 41
$ / Rank

$173 / 20
$ / Rank

$0 / 47
$ / Rank

$149 / 28
$ / Rank

$166 / 23
$ / Rank

$165 / 24
$ / Rank

$4,367 / 38
$ / Rank

$10,675 / 20
$ / Rank

$12,279 / 17
$ / Rank

$4,171 / 39
$ / Rank

$3,491 / 43
$ / Rank

$15,463 / 11
$ / Rank

$18, 551 / 9
$ / Rank

$1,091 / 28
$ / Rank

$1,389 / 20
$ / Rank

$1,119 / 26
$ / Rank

$1,674 / 12
$ / Rank

$1,576 / 16
$ / Rank

$6,024 / 1
$ / Rank

$521 / 44
$ / Rank

$36.56 / 18
Rank

$51.13 /15
Rank

$51.05 / 16
Rank

$65.71 / 10
Rank

$78.25 / 8
Rank

$63.25 / 12
Rank

$17.66 / 30
Rank

25

3
5 6 7

10

11

37

US Census Bureau US Department of Labor, Bureau of Labor Statistics American Electronics Association: Cyberstates Report 4Bureau of Economic Analysis and US Census Bureau, Compiled by Congressional Quarterly

US Department of Energy Energy Information Administration US Department of Defense Price Waterhouse Coopers Money Tree Survey 8Forbes: Best States for Business

WMC 501 E. Washington Avenue, Madison, WI 53703 PO Box 352, Madison, WI 53701-0352 Phone: (608) 258-3400 Fax: (608) 258-3413 www.wmc.org