MADISON (WPR) Lawmakers are floating the idea of providing tax incentives for small businesses that expand their payrolls. Some Wisconsin business owners say it’s just one tool that could speed up job growth and jump-start sluggish sales. But others aren't so sure.
Wisconsin has lost some 150,000 jobs during the recession. The southeastern part of the state has borne the brunt of the economic downturn -- especially its manufacturing sector -- but there are pockets of pain everywhere.
Cheryl Detrick, president of the De Pere Area Chamber of Commerce, says she's excited about legislation co-sponsored by Congressman Steve Kagen that would give a $5,000 tax incentive to businesses that make new hires. But she says government legislation is not the answer. Detrick says while it can create a climate for businesses to take a risk, creating jobs hinges on what business leaders are comfortable doing.
Not everyone agrees that a tax incentive will boost the job market. John Florsheim, president of the Milwaukee-based Weyco Group, says the downturn has hurt sales of his company’s footwear. Florsheim says they’re not in a “very conservative” hiring mode and Weyco will base hiring decisions on consumer demand, not tax incentives. He adds they generally hire people as needed when business picks up.
Critics of the proposed tax incentive say it won’t spur job growth, but will only increase government spending, and add to the deficit.
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Information from Wisconsin Public Radio, www.wpr.org
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