Border war

To the Land of Lincoln: Wisconsin is 'Open for Business'

By Scott Walker, Jeff Fitzgerald

January 19, 2011


Wisconsin and Illinois are two very different states (and we are not just talking about Green Bay Packers and Chicago Bears fans).

In Springfield, Gov. Pat Quinn and lawmakers approved massive tax increases on individuals and employers. They put off difficult decisions, like reining in public-sector benefits and reducing the growth of government, for another day.

While Illinois legislators may call those tax increases temporary, the reality is that by avoiding the hard decisions now, they are creating larger budget problems for the future. Illinois leaders have made it clear that they do not have the will to solve the state's budget problems except through greater tax increases.

In contrast to the mess in Illinois, we convened a special session of the Wisconsin Legislature to focus on jobs. Our message is simple: "Wisconsin is Open for Business."

We are reducing taxes on our businesses and health savings accounts, reforming our state's regulatory and litigation environment and transforming our Department of Commerce into a public-private partnership that focuses on economic growth. Of special note to companies south of our border, we are passing legislation that will exempt companies that come to Wisconsin from corporate taxes for two years.

During that time, we'll be continuing to lower taxes, curb spending and transform Wisconsin's business environment. Our hard work begins with this year's budget, where we will reduce spending by making the long-term reforms necessary for a sustainable balanced budget, all without raising taxes.

Tuesday, on the road signs along our state borders, we unveiled a different message aimed squarely at our neighbors. In place of the name of our state's governor, the signs announce that Wisconsin is "Open for Business."

Looking at the big picture, it's clear that Wisconsin is a better deal for business. Wisconsin's corporate tax rate is too high at 7.9 percent, but we will work to lower it by making the difficult decisions in our budget. Illinois' corporate rate is 7 percent, but the state also charges a personal property replacement tax — on top of the corporate rate — of 2.5 percent. The two taxes combined make Illinois' effective rate 9.5 percent for corporations. Illinois also has a much higher sales tax rate, which reaches as high as 9.75 percent, more than 4 points higher than Wisconsin's.

Businesses make decisions based on trends, and the contrast between Wisconsin and Illinois could not be greater. Wisconsin is heading in a pro-growth direction. Illinois is not. Add in Wisconsin's high quality of life — there's a reason Illinois residents enjoy so many weekends and vacations up here — and suddenly moving to Wisconsin is a smart business move.

To those of you who are frustrated with the high cost of doing business in Illinois, our message is clear: "Escape to Wisconsin!"

Scott Walker is the governor of Wisconsin, Jeff Fitzgerald is speaker of the House and Scott Fitzgerald is the Senate's majority leader. All are Republicans.

http://www.chicagotribune.com/news/opinion/ct-oped-0119-wisconsin-20110119,0,5851127.story