tag:blogger.com,1999:blog-3426800777521979578.post984888171105560770..comments2024-02-20T19:58:27.733-06:00Comments on Jake's Wisconsin Funhouse: $384 million tax cut now "clarified" to $0? Unknownnoreply@blogger.comBlogger2125tag:blogger.com,1999:blog-3426800777521979578.post-28471611368419930172016-02-03T12:10:58.519-06:002016-02-03T12:10:58.519-06:00Thanks for that clarification, John. If it's s...Thanks for that clarification, John. If it's simplifying the definition of "economic substance", it's probably not too bad.<br /><br /> But by the same token, it can't be trusted. There's little doubt in my mind some lobbyists came up with these ideas that were slipped into this bill (look at all the self-interested business lobby groups that are in favor of it), and they aren't doing it out of the goodness of their hearts.Jake formerly of the LPhttps://www.blogger.com/profile/15660401299391001751noreply@blogger.comtag:blogger.com,1999:blog-3426800777521979578.post-35265037115834318382016-02-02T21:21:14.473-06:002016-02-02T21:21:14.473-06:00Thanks for pointing out that this is being voted o...Thanks for pointing out that this is being voted on tomorrow. When I looked at the committee's agenda this morning I was specifically looking for this bill, and it wasn't listed. <br />As for the "economic substance" provision, the substitute amendment makes a major change, and I suspect the revised fiscal estimate is accurate that it eliminates the cost. The original bill referenced the federal law about "economic substance, which would have been find, except the federal definition includes a provision saying that it does not apply for purposes of state and local taxes. The substitute amendment corrects that, so it lines up state and federal law. <br />Overall, I think the amended version is vastly better (or far "less bad"), but there are still a couple of trouble spots. For example, beginning in 2017 it would end the state's contract with the Multistate Tax Commission. The MTC is a way of doing multistate audits that can keep large national and international corporations from hiding revenue & telling different things to different states. Ending our participation in those audits is expected to cost $1.25 million per year, and I worry that that number could grow much larger as some of the largest corporations get much more aggressive in using gimmicks and deceptive practices to hide their Wisconsin income. Jon Peacocknoreply@blogger.com