A state lawmaker says there's a simple solution to Wisconsin's budget crisis.
State Representative Spencer Black (D-Madison) says closing the so-called "Las Vegas loophole" could help Wisconsin solve its budget problems. The Department of Revenue estimates that such a change could net the state $260 million a year more in tax collections, which Black says could easily address the projected $527 million hole in the current two year state budget.
The loophole is in reference to current state law, which allows out of state businesses to avoid corporate income taxes in Wisconsin by shifting their earnings to states that don't collect them, such as Nevada.
Black says closing the loophole is an easy fix that could help the state avoid more painful cuts or fund raids, which could damage budgets for years to come.
The Madison Democrat also disagrees with those who say the change could drive employers out of Wisconsin. He says it forces those companies to just keep their profits in Wisconsin, which could actually result in the creation of more jobs.
Black says he's only asking that major corporations pay their fair share of taxes.
