Why the GMCC Opposes the Taxpayers Protection Amendment

Greater Madison Chamber of Commerce [pdf]

The Greater Madison Chamber of Commerce (GMCC) Board of Directors opposes the Wisconsin Taxpayer Protection Amendment and has urged legislators to vote against SJR 63 and AJR 77.
What the Wisconsin Taxpayer Protection Amendment (WTPA) proposes and what the likely outcome will be are two different things. While we believe that limiting or reducing taxes is a laudable goal, we disagree that this proposed amendment is the best way to achieve that. The GMCC’s intent is to bring balance to the discussion.
It is our position that the state constitution is not a place to implement permanent limitations that are sure to have major long term consequences. There are many unresolved questions and arguments raised by others related to WTPA which are outlined below. GMCC shares many of these questions and concerns.

via an email from Jennifer Alexander.

Dear Valued GMCC Member:
The Wisconsin Taxpayer Protection Amendment (WTPA) was proposed in March and Senator Glenn Grothman (R-West Bend) and Representative Jeff Wood (R-Chippewa Falls) are leading the push in the Senate and Assembly, respectively. The proposed constitutional amendment, which many call the newest version of TABOR (Taxpayer’s Bill of Rights), aims to limit revenue increases for the state, K-12 schools, technical colleges, counties, and municipalities of Wisconsin.
The plan is similar to the previously proposed TABOR, which drew a substantial amount of controversy from both political parties. However, unlike TABOR, which focused on limiting government spending, TPA is aimed at limiting state and local government tax and fee collections. The GMCC Board of Directors has taken a formal position of opposition to the proposed legislation due to concerns about the direct and indirect effects TPA will have on our region.
Proponents of this legislation assert that the overall goal is to bring Wisconsin taxes back in line with taxpayers’ ability to pay. While GMCC certainly supports efforts to reduce the overall tax burden for businesses and residents, we do not believe that financial limitations and policies belong in the Constitution. Elected officials need to be held accountable by voters for decisions on budgets and program spending. This legislation will take away the ability of elected officials to perform the tasks and make the decisions which the public elects them to make.
As we collectively work towards local and regional economic development that preserves and enhances quality of life, our goal has been to encourage business creation, expansion and retention, sector-based business development (including bio-agriculture, biomedical, health care, etc), reliable energy, the highest-quality workforce, diverse housing choices, an efficient transportation system, and the availability of quality, affordable health care. We believe adoption of WTPA will jeopardize these goals.
If WTPA is adopted, it will negatively impact businesses and jobs in Wisconsin. Companies demand highly educated and trained workers. Additional revenue limits on K-12 education, the technical college system and the University of Wisconsin System will reduce the number of available skilled workers and graduate degree employees. Revenue limits on local government may force communities to curtail economic growth because they may be unable to fully recoup the cost of providing infrastructure and expanded services to areas of new growth.
While GMCC certainly supports efforts to reduce the overall tax burden for businesses and residents, the State Constitution is not the proper venue for limitations on state revenues or spending. Elected officials, including those in the state legislature, need to be held accountable by voters for decisions on budgets and program spending. This legislation will take away the ability of elected officials at all levels to perform the tasks and make the decisions which the public elects them to make.
During the Collaboration Council’s trip to Denver earlier this year, we heard numerous stories of how Colorado’s TABOR negatively impacted education, the economy and the overall business climate. Colorado voters recognized the problem and responded by approving Referendum C which suspends TABOR for five years in order to restore earlier spending cuts to higher education, K-12 and transportation. The GMCC Board of Directors heard the message and decided there is no choice but to oppose WTPA.
Please take a moment to view our website at www.greatermadisonchamber.com. You will find a featured link in the Government Affairs section which explains in greater detail why passage of WTPA will be detrimental to the health of education and economic development throughout Wisconsin.
If you have questions about GMCC’s position in opposition to WTPA, please contact Delora Newton at dnewton@greatermadisonchamber.com, or by phone at 443-1947.
Sincerely,
Jennifer Alexander
President, Greater Madison Chamber of Commerce