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The Blackbay Group Managing Principal Todd Schoenberger on tax credits and incentives that Wisconsin is offering to draw business to the state and boo...
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-- into cities and states everywhere market watcher -- on -- it's a target's remarkable you know.
-- got that right -- I love this story because he started thinking about.
-- governor Walker's actually doing every state should be emulating this business -- right now.
The ancillary benefits are going to be that much greater clearly its gonna help -- employment.
Down the road but it's also gonna help with the tax -- for his state and this is why this actually goes back to something may be Ronald Reagan what do once said if you -- -- wanna see prosperity.
Get rid of that regulation.
How about the businesses and you'll see your economy grow you know it's got a novel -- -- -- that's when I started reading about this taught -- you know this step backwards and forwards but.
It wasn't just tax breaks but was it was incentivizing investors in these young companies coming in.
To share the wealth will give you tax credit you buy in this you keep it here and everyone's rewarded that's a novel type of a little goody you know.
It's a fantastic approach because at 25%.
Tax break.
44 seed capital army keep in mind you have so many educated workers in Wisconsin and what Wisconsin is doing is keeping an in house there come -- They're actually dared to suit your they're seen their earnings rise and are willing to invest in companies.
Right there in this state so when you give that tax incentive -- actually saying look I'll give you 2525%.
Break.
But he knows that the state of Wisconsin is going to see that.
That number quadruple down the road only because of the economic -- -- to tax rolls.
Obviously more employment it's only gonna help that state moving forward well it's pretty clear from blue when we look across the country and we look at those states that have cut taxes.
Or cut regulations or made a more labor friendly environment by labor does mean worker friendly environment.
They'd been richly rewarded and those that haven't Stockton comes to mind that that that paid the price.
But it seems at least in Washington to fall on deaf ears would -- make -- and -- -- right about that -- I mean first of all you have eight you used that's just talk about the social ramifications of what Washington does.
I mean we're borrowing forty cents on -- -- right now just to cover our overhead costs per month.
So when you start thinking about just borrowing how are you supposed to actually invest how are you going to promote -- incentivized.
-- and investment is from companies and individuals so moving forward we have to wonder and you would hope.
That -- -- -- look at this page it's taken out of out of Madison.
And hopefully they would then respond favorably may be offer some tax breaks unfortunate I don't see that happening any time and -- Well I -- I think you're right at least some of the loop current kind of environment.
I'm I'm Todd I am curious about one thing -- -- I'd noticed this pace picked up in Wisconsin oppose the recall effort and other words.
More companies are calling -- -- the Madison and an end and then this state.
Capital officials who sort of woo businesses and and post this sort of crack down on -- on on.
Public pension and health care cause when the state seems to be getting its act together.
Companies seem to be drawn to that and I'm not saying Silicon Valley moves and -- to Madison Wisconsin but we're already seeing many more increasing to do that what do you predict.
Why had to tell you though I mean you actually saw this in the state of Texas where you had many technology companies.
Move out of California they move into Texas because of the tax break now you're actually seeing -- in Wisconsin.
The tax break IDC to social services you don't have the extra overhead costs.
That's what a company wants especially a key tech start up.
And then we will have that money that's coming in any -- besieged capital from another investor you wanna make sure that's going to be fiscally conservatively used that you well.
And that's what we're seeing in that state so I think this is just a start -- big things for that -- -- -- clearly on the on an upward trajectory Friday continue for many years right now.
Not thanks couldn't say it is always my friends until burglary --
