A state business group says expanding Wisconsin's sales tax base is a bad idea.
There's been talk at the Capitol of lifting tax exemptions on services commonly used by small businesses. Wisconsin Independent Businesses Director Wayne Corey says it's an "unthinkable" solution to the current $5.4 billion deficit faced by the state.
Corey says such a plan would likely charge taxes on services commonly used by small businesses, such as accounting or legal representation. He says that amounts to balancing the budget on the backs of a very specific group.
With the nation facing a recession, Corey says small businesses are crucial to helping the state get back on firm financial ground. However, he says adding to their tax burden will make it much harder for those businesses to thrive and help the economy recover.
If the state needs more revenue, Corey says the state would be better off with a broader approach. He says it should be based on a tax that covers virtually all taxpayers, rather than asking a small segment of the population to bail the state out.