Oil Tax Could Mean Lost Jobs for Rural Wisconsin
MADISON, Wis. (June 8, 2009) – In the wake of last week's unemployment numbers showing the highest rate of joblessness in 25 years, co-op managers say they fear a proposed tax hike on motor fuel will make things even worse in rural Wisconsin.
A recent survey of 60 local Wisconsin cooperatives that supply motor fuel showed combined employment figures of more than 3,480 full-time jobs and combined payrolls in excess of $145 million. However, many cooperative general managers across the state are concerned that the proposed oil company gross receipts tax will put hundreds of jobs at risk.
“Cooperative Network has estimated that the governor’s oil tax proposal will take nearly $10 million from the cooperative system annually and that kind of loss cannot be absorbed by the system,” said Bill Oemichen, president & CEO of Cooperative Network. According to Oemichen, the estimated cost of the gross receipts tax translates to more than 230 jobs at cooperatives across the state.
Last Friday the U.S. Department of Labor reported an increase in the national unemployment rate to 9.4 percent, the highest in 25 years, and stabilizing, but significant initial unemployment claims total 621,000.
“If this gross receipts tax on motor fuel becomes law it will force some cooperatives to consolidate and others to cut costs and that means lost jobs,” said Bob Lowe, general manager of Country Visions Cooperative in Reedsville, Wis.
“While the governor may have good intentions, the reality is that the oil gross receipts tax touted to tax “big oil” profits of companies like Exxon-Mobil hits most companies that are wholesale suppliers of motor fuel. Cooperatives are non-profit businesses. The idea of taxing their profits is misguided and will only hurt the employees of the cooperative and the cooperatives’ member-owners,” said Oemichen. |
