| If you were to ask an entrepreneur what factors | | | | for Bruce and Deskins, they are quick to point out |
| are most important to the success of his or her | | | | that states with larger state governments, as |
| business, you're most likely to hear - finding and | | | | measured by state taxes per capita, seems to have |
| keeping the right employees, affordable health | | | | lower entrepreneurial shares. |
| insurance, protecting intellectual property and cutting | | | | According to the Wisconsin Taxpayers Alliance, in |
| through typical government red tape. | | | | 2006 the federal, state and local taxes amounted to |
| Entrepreneurs who are not earning a profit may not | | | | 33.4 percent of personal income as apposed to 33.1 |
| be concerned yet about corporate income taxes. | | | | in 2005. While that may be a small increase, it shows |
| Those who do not own their own building may not | | | | that most citizens will not turn a blind eye to a tax |
| be worrying about property taxes, although they are | | | | increase. |
| paying them indirectly through rent or lease payment. | | | | From a budget balancing-perspective, increasing a |
| In order to create a healthy environment for the | | | | major tax, like income tax or sales tax will not be a |
| entrepreneurs, it is important to keep local and state | | | | strong enough argument. The projected gap in what |
| taxes down. | | | | state agencies hope to spend and what revenues |
| There are some legislatures who might panic at the | | | | are available equals about six percent of the $26.4 |
| thought of a $1.6 billion deficit and wonder if anyone | | | | billion the state expects to raise over the next two |
| would notice an increase in taxes in certain areas, | | | | years. Doyle and lawmakers are working to keep |
| which mind you, would help the economy. | | | | costs down, revenue estimates rising, and a low |
| Companies with a vested interest, small businesses | | | | deficit. The starting point of $1.6 billion is half of the |
| and entrepreneurs will definitely notice the increase | | | | anticipated deficit two years ago. |
| even if taxes aren't necessarily an issue for them. | | | | Cutting taxes ( ) on activities that encourage |
| Statistics shows that if state and local taxes were | | | | entrepreneurship is an area that both Doyle and |
| lower in certain states, namely Wisconsin, those | | | | lawmakers are in agreement on. One plan is increase |
| states would attract more entrepreneurs. | | | | tax credits available to angel and venture capital |
| In a study commissioned by the Small Business | | | | investors who invest in technologically advanced or |
| Administration, Donald Bruce (University of | | | | high-growth start-up companies, and the other is, |
| Tennessee) and John Deskins (Creighton University), | | | | offering capital gains tax exclusion for investment |
| found that higher top tax rates on individual income, | | | | gains that are re-invested into high-growth Wisconsin |
| higher sales tax rates and the existence of | | | | companies. |
| state-level inheritance or gift taxes all seemed to | | | | This may not be the first or last time you will hear |
| reduce a state's share of the national entrepreneurial | | | | the citizens of Wisconsin complaining about state and |
| stock. In their study, from 1989 to 2001, Wisconsin | | | | local taxes. But whatever you do, think smart. Smart |
| appeared to have had above taxes and below | | | | budgeting and a growing economy (more |
| average entrepreneurial scores. | | | | entrepreneurs and more jobs) are two of the best |
| Even though state and local taxes are minor issues | | | | remedies for the deficit. |