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WMCA commends Governor for no tax increase proposal

The Wisconsin Motor Carriers Association (WMCA) has commended the Governor for not increasing taxes in his Budget Reform proposal that was sent to the legislature on January 22.

“Our members were delighted to hear that the Budget Reform package contained no tax increases,” indicated Tom Howells, WMCA President.  “Tax increases at this time would have a devastating impact on trucking companies, other businesses, and the Wisconsin economy.”

Howells also indicated that his group agreed with the decision to provide “firewall” protection for the transportation budget. The WMCA feels that it is appropriate that the DOT make cuts in their operating budget to “share the pain” that other state agencies are making. “However, the Governor has correctly assessed the importance of transportation development in maintaining a strong infrastructure and a sound jobs base and I am delighted that he chose not to decimate the transportation budget.”

The year 2001 has been a very difficult year for the trucking industry. The amount of freight being moved was down considerably due to a stagnant economy. At the same time, some operating costs, particularly insurance, have risen dramatically.

Many WMCA members have had to make very painful decisions. Layoffs, severe cuts in fringe benefits and wages, significant reductions in travel expense and even bankruptcies have been a commonplace reaction to the financial difficulties faced by many companies.

“It is appropriate to ask that government also make significant cuts to ‘live within its means’ instead of relying on another tax increase to resolve the problem,” Howells said.

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The Wisconsin Motor Carriers Association (WMCA) is a statewide organization with 1,300 members that operate commercial motor vehicles such as trucks and buses.