State Sen. Bob Wirch is renewing his call for the state to suspend its Manufacturing and Agriculture Tax Credit after learning that the program is costing taxpayers $804 million more than anticipated.
The savings should be plowed into transportation projects, education, health care and other areas, Wirch said in a news release Thursday.
The tax credit, which all but wipes out state income taxes for many industries, was slipped into the 2011 biennial budget with no notice or public input. By the end of the upcoming two-year budget cycle, the program will have cost the state over $1.4 billion, or $804 million over original estimates.
The Kenosha Democrat argues that the tax credit is an inefficient way to increase manufacturing jobs. He points to statistics that show the state actually lost some 20,000 manufacturing jobs since the credit was enacted.
Wirch says he's repeating his call for suspension of the program because of a new state report that shows the Department of Transportation's budget is in worse shape than originally believed. The department faces a nearly $1 billion shortfall, and Gov. Walker and his legislative allies have been unable to agree on how to fix it.
Gov. Walker is to deliver his budget address to the legislature next Wednesday.
On a positive note, a new budget report issued last week indicated that an increase in tax collections will mean that the state will end the fiscal year with a $427 million surplus.
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