MADISON, Wis. (WSAU) -- A new report from a Madison research group claims that closing a tax loophole could save millions in revenue.
The Wisconsin Public Interest Research Group (WISPIRG) stated in a press release that closing the “water’s edge” loophole used by multinational corporations would save Wisconsin taxpayers $28.8 million annually. A bill was introduced into the Assembly to close the loophole this past March but it was not passed before the end of the session.
The group’s director Bruce Speight says that even if the bill hasn’t been passed yet, it’s served another role. He says, "We saw the introduction of the bill this past session as an opportunity to educate the public and to educate state legislators, and start a conversation about what the real consequences of tax loopholes are for Wisconsin taxpayers and business owners.”
The group has numerous proposals on what the state could do with the extra revenue. Speight says, "We posed a number of different measures that could be taken by closing this loophole, everything from giving every tax payer a $10 tax cut to increasing our rainy day fund by over 10% to fixing potholes on our local roads.”
The “water’s edge” loophole allows corporations to delay paying taxes on income earned in foreign countries. Wisconsin would join Montana and Oregon as states that have closed the loophole.
The bill is projected to be reintroduced in the next session of state Congress.