A new bill introduced Thursday could keep Wisconsin corporations from funneling revenues to off-shore tax havens.
Rep. Cory Mason, D-Racine, and 18 other sponsors introduced the End Tax Haven Abuse Act to save state taxpayers over $28 million annually by preventing companies from hiding their taxable income overseas in known tax haven jurisdictions.
“There is no reason a corporation should be able to shift its profits overseas while leaving Wisconsin’s middle class families on the hook for a greater share of Wisconsin’s income tax burden,” Mason said in a written statement.
The non-partisan Legislative Fiscal Bureau estimates that by requiring combined reporting of a business’ income in known tax havens as regular, domestic tax income, Wisconsin taxpayers could save $28.8 million.
Small business owners Rick and Mary Jurmain, of Eau Claire, say the bill levels the playing field between large corporations and small businesses.
“The End Tax Havens Abuse Act will help create a healthier and more competitive business environment by levelling the playing field between big businesses and small businesses,” they said in the statement.
Now that the bill has been introduced, it is up to the Assembly Committee on Financial Institutions to act on it.
“I am hopeful the Assembly Committee on Financial Institutions will hold a public hearing on the End Tax Haven Abuse Act soon,” Mason concluded. “This commonsense change to Wisconsin’s tax laws will bring tax savings to Wisconsin’s middle class families and end the practice of hiding corporate profits in overseas tax havens.”
Racine County Eye has asked Speaker Vos for comment. We will update this story when we hear from him.