WASHINGTON, D.C. – U.S. Senator Tammy Baldwin of Wisconsin announced that she is introducing new tax reform legislation that would support small business start-up growth in Wisconsin.
“Wisconsin has a proud history of entrepreneurship and innovation, but recent reports show that we need to do more to support our Made in Wisconsin start-ups,” said Senator Baldwin. “Wisconsin’s small businesses need a tax break and that's what I'm working for. Small businesses are the engines of our economy and if we provide tax relief to start-ups, we can free up investments to create jobs and grow our economy.”
For three years in a row, according to the Kauffmann Index, Wisconsin has ranked last in business start-up activity. Kaufmann’s 2017 report notes that in the last year, Wisconsin experienced a decrease in start-up activity and no growth in entrepreneurship. ,
· Increase the start-up deduction for new small businesses from $5,000 to $20,000, allowing small business owners to put money back into their business sooner, creating jobs and growing our economy.
· Increase the deduction’s phase-out threshold from $50,000 to $120,000; and,
· Extend the start-up tax deduction to organizational expenditures to ensure businesses can benefit regardless if they are organized as a partnership, LLC or corporation.
Text of the legislation is available here.
An online version of this release is available here.