This September, Citizen Action of Wisconsin announced a tour of companies that have outsourced jobs and received public money. Last week, we unveiled a live map of tour stops as we highlight where these companies are in our state. Click here for that map.
Today, we add a new company - Graphic Packaging, Wausau
Graphic Packaging has not received funding from Walker's jobs agency WEDC, but there are more ways the Walker Administration gives special tax giveaways to companies, including those that have outsourced Wisconsin jobs.
One major way is known as the "Manufacturer's Tax Credit", a giant tax giveaway to companies launched in 2011. This tax giveaway has increased every year, virtually eliminates income tax liability for individuals and businesses claiming it, has cost more than twice original estimates ($284 million in one year alone), and has no job requirements attached to it.
Furthermore, this tax credit has given eleven people in the state over $21 million of this tax giveaway. A gigantic redistribution of income toward the already rich. As Rep. Gordon Hintz (D-Oshkosh) noted, the credit allows someone with an income of $2.5 million to pay the same effective income tax rate in Wisconsin as a minimum wage worker.
And most importantly, there is no penalty or requirement to return the corporate tax giveaway if the company outsources Wisconsin jobs. Which brings us to Graphic Packaging.
Graphic Packaging outsourced over 200 jobs when closing their plant in Menasha, Wisconsin. Yet, because Graphic Packaging still has a plant in Wausau they will continue to receive the full corporate tax giveaway known as the "Manufacturer's Tax Credit"; reducing their corporate income tax to almost zero. Additionally, there is no requirement or ability to recoup the lost tax revenue from previous years the company would have claimed this credit because it has outsourced jobs.
There have been attempts to fix this, including Senator Dave Hansen's (D-Green Bay) legislation in 2015 that would have prevented any company outsourcing jobs from receiving state funds of any kind, including Graphic Packaging.
The State Legislators representing that district, Rep. David Heaton and Sen. Jerry Petrowski, both voted to keep allowing companies that outsource jobs to continue being eligible for public funding (2015 Assembly Vote 441, 2015 Senate Vote 84)
Join this campaign, ADD YOUR NAME to learn more about new companies we'll reveal as outsourcing