Mining minefield

An important key to realizing the benefits of pro-growth policies is that first, the economy expands and then tax revenues flow, not the other way around.

The concept requires repetition because as a bill to resuscitate Wisconsin’s long-dormant iron-mining industry is being drafted, some legislators are scheming to tax prospective mining operations before they generate any proceeds.

The ploy is to levy taxes before any ore is produced and use the proceeds to train union workers—for the mining jobs whose creation the tax will most likely prevent. The “reasoning,” to use an excessively charitable word, is that the mines will become union shops because operators won’t want to spend money on training if they’ve already paid taxes for it.

Other misguided legislators are angling to replace the current tax on net mining proceeds with a gross tonnage tax, imagining this will benefit mining companies. It might, if the economy was roaring and demand was high. With today’s sluggish economy and thin profits, it makes the mere thought of launching an enterprise look foolhardy.

Back in November, a two-house Republican majority looked like a guarantee of legislative success. Now, it’s easier to understand why Governor Walker has narrowed his sights to avoid distracting from his job-creating agenda.

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About Wisconsin Club for Growth
The Club for Growth is a national network of over 40,000 men and women, from all walks of life, who believe that prosperity and opportunity come through economic freedom. Wisconsin Club for Growth, Inc. is dedicated to informing, educating and rallying citizens of Wisconsin to embrace and enact policies that lead to sustained economic growth, limited government, and minimal taxation. Wisconsin Club for Growth can and will have an enormous impact on the direction of our state. Wisconsin Club for Growth believes that effective lobbying is done at all stages of the budget cycle, including when our leaders make public promises and can be encouraged to support policies that spur economic growth. Wisconsin Club for Growth believes we must support pro-growth policies and encourage public officials with backbones to remain truly committed to making our economy and our state stronger. Wisconsin Club for Growth believes our leaders must stand up to the tax and spend mentality in Madison and work tirelessly to cut taxes and unleash the power of the free-market.

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