We can expect to hear a lot about the “Las Vegas Loophole” in the coming months from Democratic state lawmakers.
As the Democratic-controlled Legislature looks for revenue to balance the state budget, state Representative Spencer Black (D-Madison) wants to close what he claims is an unfair tax loophole for corporations that do business in Wisconsin, but have their headquarters elsewhere. Black says the so-called “Las Vegas Loophole” allows businesses to shift their profits out of Wisconsin and avoid taxes. The popular destination for those “mailbox headquarters” is Nevada, which does not have a corporate income tax.
Black says closing the loophole is needed not only to help balance the budget, but also in the interest of fairness to Wisconsin-based businesses.
Black says closing the loophole would bring the state up to $250 million a year in added revenue.
AUDIO: John Colbert reports (MP3 :37)
