# [#]John,
Here in Wisconsin, multiple manufacturing plants closed in just one month , costing hundreds of people their jobs.
Despite devastating Wisconsin families, these same companies are getting tax breaks — taking money and services from working families and helping executives get richer at our expense.
The bottom line is this: we need to either tie tax breaks to investment and job creation or toss them out altogether. If you aren’t helping our economy, you shouldn’t expect our tax breaks. Corporations need to be held accountable — but the only way that can happen is by electing leaders who will fight for what’s best for voters, instead of only serving big companies and their lobbyists.
It’s time for change, and Tom is ready to fight for hard-working Wisconsinites as our next Senator. He even wrote an op-ed about the need for reform (read it at the bottom of the email) :
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Tom has always stood up to the rich and powerful on behalf of working class Wisconsinites, and he has the decade long track record to prove it — from working with unions to save a local paper mill to fighting for a higher minimum wage and raising taxes on the wealthy.
Remember, Tom isn’t taking any corporate PAC money, so he is only accountable to the hard working people of Wisconsin.
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Team Nelson
TOM’S OP-ED:
Wisconsin is one of the top manufacturing states in the country, with more than 9,300 companies supporting 483,000 jobs. That should come as no surprise. We make everything: lawn mowers, snow blowers, toilet paper, toweling, tractors, planes, engines, trailers, speed boats, motorcycles, battleships, and yes, cheese.
Although we remain a strong center in the manufacturing world, we have begun to lose our past prominence.
In one month, our state lost three manufacturing plants supporting more than 500 jobs. In Janesville, Hufcor, thanks to its parent owner OpenGate Capital, is heading south of the border. In the Fox River Valley, Clearwater paper of Neenah shut down a facility last month, and a few weeks ago Neenah Inc. announced plans to close its Appleton plant.
Since the early 1970s, our engine companies, paper makers, defense contractors and other manufacturers have paid no property taxes. At the same time, Wisconsin manufacturers pay an effective corporate tax of 0.4%. These two mammoth corporate tax breaks take billions of dollars of tax revenue that fund important public services that benefit all members of the community, including manufacturers and their employees.
These deep tax cuts, which are intended to be reinvested in business innovation and workers, are instead being siphoned off by executives and their stockholders. Money that should be kept in Wisconsin communities is being sent out of the state and even out of the country. Whatever their excuse, their motive is the same: greed.
For Hufcor, the tax breaks were not enough. They are simply moving to Mexico for the cheap labor, a common strategy among American manufacturers to cut costs, jack up profits and increase shareholder value — all at the expense of the American worker. Indeed, Wisconsin alone lost 46,000-plus manufacturing jobs since the North American Free Trade Agreement went into effect in 1994. This is a point John Nichols has forcefully and rightfully been making for the last quarter-century.
Clearwater Paper, which makes essential material for face coverings, folded up shop, saying they wanted to get out of this lucrative market. What they really wanted to do was to cut labor costs by getting out of town. The Washington state-based company was turning their attention elsewhere, investing $330 million into their southern non-union facility, which pays lower wages.
Neenah Inc., which was born in the Fox Valley but is now headquartered in Georgia, betrayed the people of its hometown just to make a quick buck. By closing its Appleton facility, the company estimated they make an annual profit of $7 million to $8 million, a drop in the bucket for a company worth $870 million. They, like Clearwater, are investing in their southern, non-union facility too.
We need to either tie tax breaks to investment and job creation or toss them out altogether. Neither the property tax break nor income tax cut are currently contingent on any kind of economic activity.
Companies that shutter facilities should not be allowed to force non-compete clauses on buyers — those clauses prevent new owners from running the facility as it is intended. This kind of behavior is deliberately and explicitly anti-competition. It keeps new entrants out of the market and consolidates market share, destroying local jobs and making products more expensive for consumers.
Workers’ interest should be protected at every turn. They must at the very least be afforded a robust package of worker retraining and unemployment compensation that matches their foregone income and, most importantly, their benefits, especially health insurance.
And corporations should be held to account. More and more companies are shirking their responsibility for Worker Adjustment and Retraining Notification (WARN) compliance, often closing facilities sooner than the required 60 days. This activity is illegal according to existing law, and there must be stiffer penalties for violators.
These reforms fit nicely with pro-labor legislation circulating in the U.S. Congress and should not be a heavy lift. Then again, with Ron Johnson as our senior U.S. senator — a person who once equated the paper industry with the Boogie Whip — we should not be so bullish. But you get what you give. Election day is right around the corner and Johnson is well past expiration date.
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Tom Nelson serves as County Executive for Outagamie, one of the worst-hit COVID areas in the nation. Local officials have been leading our country through the pandemic because Donald Trump and Ron Johnson have failed. Tom is running for U.S. Senate because we need real leaders in Washington who will take COVID seriously. And if we can take on a pandemic, we can take on anything. And if you can win in a red county six times, you can win anywhere. If you’d like to unsubscribe, click here. [[link removed]]
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Nelson for Wisconsin
PO Box 361
Kaukauna, WI 54130
United States