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