IBAW September 2017

SEPTEMBER 2017 September 15th September 11th Sales Roundtable

“How To Map Out Your Sales Day”

SPECIAL EVENT! 2017 Wisconsin Manufacturing Summit!

- Joel Quadracci, CEO, Quad Graphics - Chad Severson, President, InSinkerator - Jim Kass, VP of Manufacturing, Allen Edmonds

Inside This Issue:

KEATING: ON TAX REFORMS: DON’T FORGET ABOUT CAPITAL GAINS

KITTLE: KOOYENGA: ‘WEALTH TAX’ HITS MIDDLE CLASS, TOO

CURTIS: WISCONSIN’S NO GROWTH ZONE: THE IMPACT OF THE CLEAN AIR ACT ON SHEBOYGAN COUNTY

Networking matters

At AT&T, we know that making connections is critical to success. In Wisconsin and across the nation, we link businesses with their customers and the world through our wireless network with access to the nation’s largest Wi-fi network. It’s just another way we help our customers stay connected.

AT&T is proud to support the Independent Business Association of Wisconsin.

© 2014 AT&T Intellectual Property. All rights reserved.

IBAW thanks AT&T for it’s continued sponsorship.

BLOMQUIST RECEIVES AWARD FOR SERVICE TO THE IBAW

Executive Director Steve Kohlmann President Dan Hansen Secretary Charles Fry Baird Treasurer Tony Palmen Sikich Directors Jim Leef ITU AbsorbTech Ann Barry Hanneman Von Briesen Law Office John Weber Hypneumat Jeff Hoffman Boerke Co.

Special thanks goes out to former Board member Richard Blomquist (left) for his many years of service and support for the IBAW. Here Steve Kohlmann, IBAW’s Executive Director, present Richard with a special award for his years of service.

Thank you Richard!

Lisa Mauer Rickert Industries Tom Boelkow BSI Design, Build, Furnish Robert Gross Gross Automation Scott Seroka Seroka Brand Development Tom Parks Annex Wealth Management Jake Hansen Jacsten Holding Scott Hirschfeld CTaccess

IBAW Mission: To advance business prosperity through insightful programming, executive networking and member-driven public policy and advocacy.

2017 “Flexing Wisconsin’s Manufacturing Muscle”

A morning celebrating the resurgence of Wisconsin manufacturing!

Network with Wisconsin’s top manufacturing CEOs including a special panel discussion with Joel Quadracci, CEO, Quad Graphics; Chad Severson, President, InSinkerator; Jim Kass, VP, Allen Edmonds.

Friday, Sept.15th, 2017

7:00 am - 9:30 am

The Wisconsin Club Ballroom 900 W.Wisconsin Ave. Milwaukee Register at IBAW.com

PLUS SPECIAL FOXCONN UPDATE With Special Guest: Scott Neitzel, Wisconsin Department of Administration.

Sponsored by:

Free Special Bonus For Manufacturers!

HNI Risk Services and the IBAW are offering a free banner to area manufacturers who attend the summit to hang in their plant as a way to say "Thank You" to their employees.

Sign up for this banner at the summit.

Register at IBAW.com LOCATION

THE WISCONSIN CLUB 900 W. WISCONSIN AVE. MILWAUKEE

7:00 AM

REGISTRATION & NETWORKING

7:30 AM

BREAKFAST & PROGRAM

9:30 AM

PROGRAM ENDS

Wisconsin Manufacturing: Open for Business Steve Kohlmann, IBAW Executive Director

October is Manufacturing Month in Wisconsin but we like to get a jump on it here at the IBAW. We’ll have a great line up for our panel discussion featuring Joel Quadracchi (Quad Graphics), Chad Severson (InSinkerator) and Jim Kass (Allen Edmonds). Additionally, Secretary of Administration Scott Neitzel will give us an update on the Foxconn project as we host the 2017 Wisconsin Manufacturing Summit on September 15th. Be sure to register at IBAW.com Manufacturing is vital to Wisconsin and having a strong manufacturing base is vital to our economy. So is bringing in new manufactures - and technologies - like Foxconn.

When Governor Walker took office in 2010, he coined the phrase “Wisconsin is open for business.” He used that phrase at every occasion and often posed next to the “Welcome to Wisconsin” signs that boarder our state. It’s been a tough slog for Wisconsin as we recovered from the great recession but Wisconsin manufacturing is roaring back with a vengeance.

“Wisconsin is open for business” isn’t just a phrase...but a mindset. It tells everyone the badger state is ready, willing and able to do what it takes not only to get the job done but to be open in discussing bringing new businesses to Wisconsin and actively pursuing them. I love the fact that Lt. Gov. Kleefisch calls up businesses in others states and let’s them know if they are interested in expansion, Wisconsin is a great place to do that and if you’re interested we’d love to talk to you about it. Governor Walker and his team used this tactic on a global scale and landed Foxconn.

Foxconn has been called a “game changer” for Wisconsin. A business so large and expansive it’s hard to get your arms around it. There isn’t another company in the United States - let alone in the western hemisphere - that does what Foxconn does. A new frontier for technology and manufacturing right in our state. And that’s just Foxconn - it doesn’t take into account the ripple effect that is sure to take place; suppliers and suppliers to suppliers.

None of this comes without certain challenges. There’s been a lot of talk regarding filling the pipeline of workers for Foxconn positions as well as other manufacturing and trade jobs. To be sure we’ll have employees to fill those positions, Wisconsin will have to ramp up it’s educational system, worker training and, more importantly, have a mindset that not everyone has to go to college to have a good-paying, family-supporting career. That change won’t come easy or happen overnight, but it will take place.

Wisconsin is a great place to live, work and play. Sure, we can have crummy weather in January and February but we also have a lot going for us - a pro business attitude, a strong work ethic and a great support system for those businesses that are located here. Most importantly, we have a mindset to get the job done.

And that truly makes Wisconsin open for business.

Kooyenga: ‘Wealth Tax’ Hits Middle Class, Too Matt Kittle, MacIver Institute

They call it the "wealth tax," but Wisconsin's alternative minimum tax is ensnaring more middleincome earners.

And state Rep. Dale Kooyenga (R-Brookfield) is on a crusade to kill what's left of the AMT. "I've been working on this for seven years, and so now is the time to get rid of this tax," Kooyenga, a member of the Legislature's Joint Committee on Finance and the celebrated "CPA Caucus" told MacIver News Service this week. it appears a few Republican senators want to hold Kooyenga believes "the future is now," but onto the approximately $6.7 million per year the alternative minimum tax still sweeps up.

As noted by Kooyenga and Sen. Howard Marklein (R-Spring Green) in their 2015 column, "Wisconsin's Tax Code: The Good, The Bad, & The Ugly," Wisconsin remains one of just six states with the tax system. Those states include some of the most notorious tax-and-spenders, such as California and Connecticut.

The AMT, a kind of second income tax, adds normally tax-free money back into an individual's adjusted gross income. The tax uses a different set of rules than the standard income tax to calculate taxable income after allowable deductions. Some things can be deducted under AMT, but some things can't. In fact, its purpose and pursuit is to make sure "certain taxpayers" don't use tax incentives to escape the state income tax.

Taxpayers affected by the AMT "pay the higher of either their tax calculated under regular income tax rules or their tax calculated under the alternative minimum tax rules," the Tax Policy Center states on its website.

While the majority of AMT payers post higher gross earnings, the law is spreading its taxing talons into the incomes of retired teachers, the elderly, and those hit with high medical costs.

The Tax Policy Center has described the AMT as "the epitome of pointless complexity."

Kooyenga noted a retired Wisconsin school teacher whose state pension was caught in the AMT after her husband passed away and she had to sell his business under duress. The tax code generally allows a loss reported on the sale of a business to be carried forward to lower taxes on other income categories, like a school teacher pension.

"People think this (the AMT) is for wealthy businesspeople. Here's a retired school teacher, and a retired school teacher who is getting a higher tax because of the alternative minimum tax," the lawmaker said.

In another case, an elderly man lost the majority of his savings - a half million dollars - investing in his son's failed startup. That net operating loss was eligible to be carried forward to lower his taxable income, but his financial circumstances triggered the AMT. "So once again here's an elderly individual that's living on his Social Security and investments and he gets caught in the alternative minimum tax because he had a business loss," Kooyenga said.

The federal alternative minimum tax, supposedly "fixed" by Congress in 2012, is impacting middle-income earners everywhere.

"While the AMT hits a much larger percentage of million-dollar households, those who earn less than $200,000 actually account for a much larger number of people who actually pay the alternative tax," wrote Jeanne Sahadi of CNN Money in 2015.

The Tax Policy Center notes AMT is more likely to hit taxpayers with large families, those who are married, and those who live in high-tax states. In 2017, families with two children are almost three times more likely to pay the AMT than childless couples, according to the center. Families with three or more children are four times more likely to pay the tax than those without children.

"Taxpayers can deduct state and local taxes under the regular income tax but not the AMT. Thus, in 2017 taxpayers in hightax states are more than twice as likely to be on the AMT as those in low-tax states," the Tax Policy Center states in its latest briefing.

Kooyenga's plan pays for the elimination of Wisconsin's alternative minimum tax through the elimination of a tax credit.

Businesses that have operations in Wisconsin and other states - not including border states with tax reciprocity agreements receive a dollar-for-dollar tax credit on those outside tax payments. The same holds for Wisconsin residents working in other states not covered under reciprocity. That would end under Kooyenga's proposal. The elimination of the tax credit would save the state $20.3 million over the biennium, according to a legislative omnibus motion on state tax policy.

"We're subsidizing other states with higher taxes," Kooyenga said, pointing to high-tax states such as California and New York.

A decade ago the tax credit didn't cost much. Wisconsin's tax rate was higher, so the credits were nearly negligible. But several rounds of income tax cuts since Gov. Scott Walker took office have led to rising tax credit costs through the state reimbursement program.

The Legislature has made strides over the years in limiting the AMT's impact. At one point, the tax grabbed north of $100 million in revenue over the budget cycle, Kooyenga said.

But a few senators, according to Kooyenga, may be pausing at full elimination. He said he's not sure who is shooting it down in the "small room" of the Senate Republican caucus, but he thinks passage could be in jeopardy. If it's a question of optics - that the left will complain Republicans are offering more tax breaks to the rich - Kooyenga said lawmakers need only look to the total impact of a tax that is complicated at best, inequitable at worst.

Maintaining the alternative minimum tax, even with the relatively tiny revenue it generates today, sends the wrong message from a state that has been cutting taxes over the past six years, Kooyenga said. Just last week, the Joint Finance Committee moved to eliminate the state forestry mill tax.

"There's a lot of states out there that have no income tax. Wisconsin has two of them," he said.

Wisconsin’s No Growth Zone: The Impact of the Clean Air Act on Sheboygan County Jake Curtis, Associate Counsel & Federalism Litigator, Wisconsin Institute for Law & Liberty

In July, the Wisconsin Institute for Law & Liberty’s Center for Competitive Federalism released a powerful policy brief and short documentary video that exposed the EPA’s assault on Sheboygan County. WILL has since presented both the brief and video to the American Legislative Exchange Council’s (“ALEC”) Federalism subcommittee at its annual summer meeting in Denver and will also present both to legislators and staffers at the Wisconsin Capitol this fall.

On September 28, 2016, the EPA proposed a rule that raises Sheboygan County’s non-attainment designation from “marginal” to “moderate.” The proposed reclassification rule received significant resistance from state and federal lawmakers, the business community that will be directly affected by the proposed rule, and even the Wisconsin Department of Natural Resources.

The policy brief, Wisconsin’s No Growth Zone: The Impact of the Clean Air Act on Sheboygan County, specifically sheds light on the ozone non-attainment designation involving Sheboygan County, the impact of such a designation on businesses in the County, the potential re-designation of other counties along the shores of Lake Michigan, and concludes by offering several immediate steps Congress can take to alleviate the onerous requirements by providing flexibility to Wisconsin to meet ozone standards.

Far too often, the main impediment to economic growth and expansion is government regulations, especially from the federal government. No regulation has been more nonsensical than the EPA’s application of the Clean Air Act’s ambient air quality standards on Sheboygan County. Congress can, and should, act now to provide much needed flexibility to state and local units of government. Without such action, Sheboygan County (and others) will remain No Grow Zones.

The report and video have received significant coverage. A WILL op-ed was featured in the state’s flagship publication, the Milwaukee Journal Sentinel. The Sheboygan Press and Right Wisconsin both attended the roll out event and provided detailed local coverage.

U.S. Representative Glenn Grothman, who represents Wisconsin’s 6th Congressional District, also published an op-ed, specifically citing to the WILL report while also highlighting a joint letter he wrote to EPA with Wisconsin’s U.S. Senator Ron Johnson. Rep. Grothman similarly highlighted WILL’s work when noting passage of H.R. 806, which delays the implementation of the EPA’s ozone standards in the Clean Air Act until 2025. WILL’s efforts were also specifically highlighted by state lawmakers, including Rep. Jesse Kremer.

Mr.Curtis is Associate Counsel & Federalism Litigator, Wisconsin Institute for Law & Liberty. He can be reached by email at jake@willlaw.org

On Tax Reform: Don’t Forget About Capital Gains Tax Raymond Keating, SBE Council, Washington D.C. As the tax reform debate heats up, it’s important to keep in mind that capital gains tax relief must be part of any pro-growth reform effort.

After all, a capital gains tax is a direct tax on the returns on entrepreneurship and investment, which, of course, are the key sources of innovation, productivity growth, income growth and economic growth.

Taxing capital gains means reducing the resources available for and diminishing the incentives for undertaking the risky endeavors of starting up, operating and investing in a business.

Therefore, the capital gains tax inflicts harm on the overall economy, and on workers, who need the jobs, productivity improvements and resulting income gains generated by such risk taking.

For good measure, it must be recognized that financial capital moves in a global market, and will flow to those locales where it is treated well. Unfortunately, the U.S. has a high capital gains tax when compared to world’s largest economies.

In fact, as noted in Table 1, the U.S. top individual capital gains tax rate of 28.3 percent (i.e., the combined federal rate (23.8 percent) and the average state rate (just under 5 percent)) ranks 40th among the nations with the top 50 economies.

Table 1: Ranking the Top 50 Economies in Terms of Top Individual Capital Gains Tax Rate

Tax relief and reform should make the U.S. a global magnet for capital.

Given all of the other positives that make the U.S. an attractive place to invest, eliminating the capital gains tax would be a major policy achievement. It would provide major boosts to entrepreneurship, investment and our economy. At the very least, the total U.S. capital gains tax rate should be reduced so that it is lower than the average 18 percent rate prevailing among these 50 nations, such as bringing the federal rate down to 10 percent.

In the end, the less you tax something, the more of it you get. Our economy – as illustrated in recent SBE Council reports here and here – needs more entrepreneurship and more private investment.

Don’t Confuse Corporate Values with Customer Expectations Scott Seroka, Seroka Brand Development

The process of defining one’s values has unquestionably become one of the hottest trends in corporate and employer branding.

And when integrated into a well-functioning, healthy culture, the results can be extraordinary in many ways.

1. Values help to differentiate the brand by telling customers and employees what the company stands for.

2. Values establish guardrails and provide guidance for making company-wide decisions throughout all levels, no matter how large or small.

3. Greater onboarding success can be achieved as hiring managers will know what traits and qualities to look for in potential hires.

4. People will know what they can expect and experience from the brand.

5. When work teams share a common set of values, not only does productivity increase, there is more harmony than conflict in the workplace.

6. When competitive products and services appear equal, people will typically support brands with values they believe in.

However, in the process of defining values, some organizations make the mistake of boasting philosophies and principles that simply reflect the bare minimum requirements a company must practice if it is to stay in business.

Thus, in my opinion, they are not worthy of being characterized as values.

Consider the following examples: 1. Honesty. Unless your company is in an industry rife with deception and manipulation, I would avoid characterizing honesty as a value. Think of it this way: Your mother may have told you not to trust anyone who says, “Trust me.” The same applies in business. However, if you still feel strongly that honesty needs to be one of your values, a better option may be transparency.

2. Respect. Not to diminish its meaning, but this isn’t anything special. If respect isn’t a part of your company’s culture, you have much larger problems to contend with.

3. Integrity. Because of such widespread and excessive use, (like the term innovation) its meaning and relevance has been lost.

4. Teamwork. See #3 above.

5. Thinking outside the box. I’m surprised every time I see this one. It’s an ancient and currently irrelevant way to express creativity and innovation. In fact, some argue that thinking “outside the box” can be counterproductive and detrimental. Apple creatively circumvented this with their tagline, “Think Different.”

6. Customer Service. If your company is not focused on your customers, you won’t be able to keep any.

When thinking through what your values are, or what they could be, I would encourage you to think in terms of the mindset you will need to take your company to successive levels. One CEO shared with me that his original team did a great job of getting his company to hit $5 million in sales, but not all were up to the task of hitting $10 million. And although he was proud of his culture, he admittedly never went through the process of thinking through what values would be necessary to achieve $10 million in sales and beyond.

After much thought and introspection, some of the values he defined and instilled in his culture include: courage, risk-taking, no excuse accountability, embracing diversity of cultures and perspectives, welcoming oppositional thinking, and embracing failure, among several others.

Today, he is currently running a $22 million company and is convinced it would not have been possible without defining and hiring to a set of ordained values.

Maybe he is onto something.

Sales Roundtable Monday, September 11th, 2017 | Time: 7:30 a.m. - 9:00 a.m.

Location: CTaccess, 740 Pilgrim Parkway, Elm Grove

How To Map Out Your Sales Day The old saying "Time flies when you're having fun" has never been more true when you're in sales. A day can go by FAST! But having a disciplined schedule is vital not only for sales success but life success. Join us for a morning of insightful sales - and life - discussion on how to keep your schedule under control.

The Sales Roundtable is a great way to keep you and your team pumped up and it's a FREE benefit of your IBAW membership!

Register at IBAW.com

President’s Circle IBAW / DALE CARNEGIE PRESIDENTS CIRCLE A LEADERSHIP PROGRAM FOR CEOs, PRESIDENTS, AND BUSINESS OWNERS

As the CEO, President, or Owner you are asked to produce more results with fewer resources, meet and exceed competition, innovate and motivate. This creates very difficult teams and leadership challenges. Leaders must encourage teamwork, bottom-up idea generation, alignment, loyalty and above all commitment. Rather than direct and dictate, leaders must inspire and motivate!

The Presidents Circle: The IBAW and Dale Carnegie Training have developed an exclusive Leadership program for IBAW members only. The Presidents Circle combines peer group engagement and highly targeted executive Dale Carnegie Training among peers to help you achieve significant results. These results will be achieved by providing insights, peer challenges, and developing leadership skills which are aligned with your organization and which will help drive agendas. By combining corporate mission, vision and values with our unique methodology employees will begin supporting a world they helped create.Ultimately, the only sustainable competitive advantage is the innovation, motivation, and creativity of the employees of an organization. Establishing a strong leadership culture provides the environment where innovation and creativity can flourish.

Program Specifics: • • • •

Meetings with other IBAW CEOs/Presidents/Business Owners 10 monthly meetings Dale Carnegie Executive Leadership Training workshop each session.

Round Table Issues Discussed and Resolved

• • •

Guided Yearly planning Accountability among peers.

Business Results

The President’s Circle will help you achieve results by: • • •

Providing training among peers Creating and sustaining change initiatives Ensure continuous improvement and bottom-line impact

• • • • •

Align the organization behind a common vision Develop a habit of fact-based decision making at every level.

Strengthen and implement strategic planning Create a value based culture to ensure loyalty Build energy and trust up and down the organization to insure customer loyalty.

Program Leader: Steve Bobowski

“Knowledge isn’t power until it is applied.”

-Dale Carnegie

Commitments: • Attend meetings • No cost for meetings, a benefit of IBAW membership •

Referrals or 3 enrollments

This program is now forming and is limited in the number which can attend.

For more information, contact Program Leader Steve Bobowski by clicking here.

Coach’s Corner: How to Work with a Manager Steve Bobowski, Dale Carnegie

People have different ways of approaching situations and many times they will think their particular problem is huge when in reality it can be easily solved. It is great to hear you notice the difficulty in working with this manager and want to improve your work relationship with them.

Here are some pointers you can try when working with them: 1

Speak in a calm manner. This might help tone down their excitement and ease them into a more smooth conversation.

2

Clarify their problem. If you are confused about the dilemma, ask questions to get a better understanding of what you can do to help.

3

Rephrase the problem before giving the solution. This will help eliminate any misunderstandings you might have with the issue.

4

Be patient. This may just be the way this particular manager handles all their problems and something they can’t change too much. Work around their demeanor and show them there is a quick fix to the problems they're coming to you with.

If you have any business related questions or would like advice on other workplace issues, visit our web site at www.sewis.dalecarnegie.com or email us at payton.stevens@dalecarnegie.com. (c) Dale Carnegie & Associates, Inc. 2006. All Rights Reserved.

Knowledge and Insights Powering Independent Business

BUSINESS PROGRAMMING • Timely Speakers on Business Issues • A Powerful Resource for You and Your Team

PEER TO PEER NETWORK • Connect With Your Business Peers • Intimate Setting = Meaningful Dialogue

VOICE TO GOVERNMENT • Member Driven Advocacy • Voice on Public Policy Issues

Learn the benefits of membership at IBAW.com

: S E L A S

2nd Monday of the Month SALES ROUNDTABLE 7:30 am - 9:00 am Free & open to IBAW members only Register at IBAW.com

Sales can be a tough road of ups, downs, potholes and a few bumps.

But it can also be fast paced, exhilarating and rewarding.

If you’re in sales, you know there are things only other sales people understand; the thrill of scoring the big account, the uncertainty of “let me think about that.”, the frustration of phone calls or emails that don’t get returned. IBAW’s Sales Roundtable is a support and knowledge resource for sales professionals, business owners, marketing and branding experts who are charged with driving sales.

Join us to discuss the strategy, tactics, inspiration, and motivation to increase sales. It’s a FREE benefit of your membership!

Who should attend: • Sales professionals of any level.

• Business owners • Sales Managers • Marketing & P.R. Professionals

“For many years I ran sales meetings for as few as 3 and as many as 22 sales rep’s now I can go as a participant once a month to IBAW’s Sales Roundtable.

BONUS! Join the IBAW Sales Roundtable and get a compact disc with the BEST in Sales Survival Music. Play it to pump you up before that big meeting or to console you if you hit a sales slump. Guaranteed to make life better.

It’s a focused meeting and everyone wants the same thing – to be more effective at selling.”

- Jerry Wick, CEO, Custom Data Too Mail

IBAW is on an upward trend of growth and we are actively recruiting businesses just like yours to join!

When you join IBAW your entire company is a member - anyone from your team can attend our fine educational and networking events.

Help yourself, your business AND your Team Members.

Come on in...we’re open for business!

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Mike Poludniak Merrill Lynch

2017 Membership Committee

Katie Ross Xorbix

Charles Fry Robert W. Baird

Jeanie Brown Quality Resource Group

Dan Hansen

Jake Hansen Jacsten Holding

Tom Parks Annex Wealth Mgt.

Legislative Fix Moving Ahead for Wisconsin’s New Manufacturing & Agricultural Credit Jim Brandenburg, CPA, MST - Sikich LLP

In IBAW meetings and publications in recent years we have introduced you to Wisconsin’s new tax incentive - the Wisconsin Manufacturing and Agriculture Credit (referred to as the “MAC”). The MAC came about in 2011 to provide an incentive for Wisconsin manufacturers and agricultural companies to remain and grow here, and also perhaps to have out-of-state companies move here. It was scheduled to begin in 2013, and when fully phased-in by 2016 it would essentially exempt any Wisconsin manufacturing and agricultural income from Wisconsin income tax. The MAC was championed by Representative Dale Kooyenga and Senator Glenn Grothman in the legislature.

Magazine Content Needed Consider Submitting an Article!

The MAC, however, had some problems for individual taxpayers when it was drafted and this glitch was recently identified. Here is the issue in a nutshell: the MAC would reduce a taxpayer’s Wisconsin individual income tax, but then would trigger a Wisconsin minimum tax for nearly the same amount. Thus, there may be little, if any, net savings for the MAC in 2013 (a “MAC Attack?”). The legislature is trying to remedy this situation now so that taxpayers can realize the proper tax savings with the MAC on their 2013 Wisconsin individual tax returns.

The IBAW magazine is in need of content, we rely on our members and sponsors to supply us informative articles. The digital magazine is sent out to over 650 contacts statewide and the magazine is parked on the web where, on average, it gets over 1100 views.

Legislative Update: It seems that all key legislative leaders are now on board to correct this issue. It was approved by the legislature’s Joint Finance Committee last week. The Senate and Assembly will be in session in March and voting on final passage for several bills, one of which is this tax bill with the MAC correction. It looks like the legislative timetable will have the bill passed near the middle of the March, before going to the Governor.

Thus, a best guess now is that the bill would be enacted into law somewhere in the latter half of March, 2014.

MAC Attack Options: For any of our individual taxpayers taking advantage of the MAC, this may present some filings logistics. Here are the possibilities:

1. Best case scenario - in some cases the taxpayer’s share of the MAC for 2013 will be used and not result in a Wisconsin Minimum Tax. A taxpayer in this situation could go ahead and claim the MAC and file their 2013 Wisconsin individual return. There would be no need to wait for the legislation to pass.

Consider writing an article on a timely business related topic to your particular field of business. This is an outstanding opportunity for you and your company to gain exposure and increase your brand awareness to a statewide audience. There is no cost to submitting an article.

2. Next, a taxpayer has generated a MAC for 2013, but it will trigger a Wisconsin Minimum Tax. The taxpayer in this case could wait until the law is changed (and then wait a little for the WDR to update its computer processing systems) and then file their Wisconsin tax return and claim the MAC, and not incur the Wisconsin Minimum Tax. This could present a tight timeline for the April 15 deadline, and you may need to file for an extension.

3. Similar case as #2, but this taxpayer could file their Wisconsin individual return with the MAC, but also incur and pay a Wisconsin Minimum Tax for 2013. Then, once the corrective law is enacted go back and file an amended 2013 Wisconsin tax return to obtain the proper tax benefit of the MAC. You would not need extend, but you would need to amend.

We’ll keep you posted as this legislation moves forward.

If you have any questions, please contact Jim Brandenburg or Brian Kelley at Sikich, LLP in Brookfield (262)754-9400.

Contact Steve Kohlmann for details.

Articles submitted by our members & sponsors.

Welcome New IBAW Members!

Meeting Recaps 2014 Wisconsin Manufacturing Knowledge Summit

Power Test

On June 20, 2014 the IBAW partnered with the Tool, Die & Machining Association of Wisconsin (TDMAW) to offer Wisconsin manufacturers and their suppliers a unique look at trends within the industry and to also report on some of the challenges the industry faces in the next 5 years.

Power Test, Inc. is an industry leader in the design, manufacture and implementation of dynamometers and control systems.

Special thanks to the event sponsor, First Business Bank for their efforts in helping organize this event.

For more than 37 years, Power Test has provided specialized test equipment to manufacturers, rebuilding facilities and distributors globally. Our products can be found in use at these facilities in nearly 100 countries on six continents.

Chris Halaska

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1

Our headquarters and manufacturing operations are located in Sussex, WI with sales representatives worldwide. Our unparalleled customer service is well known throughout the industry.

Power Test employs a dedicated staff of talented machinists, fabricators, electronic technicians, assemblers, designers, engineers, software developers, and administrative and customer service personnel.

Our exceptional product life and excellent customer service is well known throughout the industry and has made us one of the industryleading dynamometer manufacturers. Our dedication to the customer and to the advances in powertrain component testing keep us there.

Power Test N60 W22700 Silver Spring Drive Sussex, WI 53089 Phone: 262-252-4301

4 Advanced Waste Services Advanced Waste Services is an environmental services company that provides wastewater recycling and other waste and risk elimination services to manufacturers in all industries. Each day, AWS helps hundreds of businesses, both large and small, meet their community and environmental obligations. Annually, we collect, treat and recycle more than 50 million gallons of contaminated wastewater into clean, reusable water and other valuable resources like fuel, steam and electricity.

AWS is constantly helping our clients manage, reinvent and improve their sustainability successes. For example, we recently partnered with Forest County Advanced Waste Services Potawatomi Community to help Wisconsin food and beverage manufacturers convert 1126 South 76th Street food waste into clean, green renewable energy.

Suite N408B

West Allis, WI 53214 Founded in 1993, AWS employs 55 people in the Milwaukee area and a total of 150

people companywide in 5 states.

414-847-7100

Photo Key 1: A full house in the main ballroom of the Wisconsin Club as IBAW & TDMAW members prepare to hear about the state of manufacturing and the challenges the industry faces in the workforce.

5

2: David Vetta of First Business Bank delivers opening remarks and highlights the importance of a strong relationship between banking and manufacturing working together for success.

3: New IBAW President, John Weber of Hypneumat addresses the change in IBAW Bylaws and calls for voting in new board officers.

4: Kent Lorenz of Acieta gives the main presentation on “Manufacturing Matters” pointing out the trends on manufacturing now and what to expect in the future.

5: Outgoing IBAW President, Steve Van Lieshout receives his award for his efforts as 2013 - 2014.

6 Photos courtesy of Tim Townsend.

6: IBAW Executive Director, Steve Kohlmann (Left) presents David Drumel with an award for his service on the IBAW board.

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Small Business Champions

RICKERTINDUSTRIES, INC.

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THERE’S ROOM AT THE TABLE

As an advocate for small business, the IBAW offers intimate meetings on relevant topics such as Leadership, HR, Sales, and Political Issues.

Business Leaders...Leading Business

Join us. “...the sales round table was very informative, Judson will be renewing our membership in the IBAW. Thank you and I look forward to more roundtables!”

Dominic Misasi, Judson and Associates s.c.

“ I almost always come away from an IBAW meeting with useable material that helps me with my business. Many times, a speaker will give me something that applies to ITU AbsorbTech. Other times, it is a conversation over breakfast that gives me value.”

Jim Leef, President & CEO, ITU AbsorbTech

“Being involved with a business organization like the IBAW is critical for small business owners in Wisconsin for growth and to have a voice with government.”

Rich Meeusen, CEO, Badger Meter.

Education • Networking • Political Advocacy BUSINESS LEADERS...LEADING BUSINESS

www.ibaw.com / 262-844-0333 / IBAWOffice@gmail.com

IBAW

960 Timber Pass Brookfield, WI 53045 Office: 262-844-0333 IBAW.com

Membership Application

Name______________________________________________Company_________________________________________ Address____________________________________________City, State, Zip_____________________________________ Phone______________________Email Address_____________________________Website______________________________

MEMBERSHIP INVESTMENT

IBAW membership is based on the number of full time employees in your company.

Number of employee in your company

AMOUNT

1 - 15 Employees ...............$300.00 16 - 25 Employees ...............$400.00 26 - 49 Employees.................$500.00 50 or more Employees...........$600.00 SPECIAL OPTION: Prepay breakfasts meetings. Get 12 for the price of 10!

$320.00

Amount Enclosed

MEMBERSHIP BENEFITS apply to your entire team.

• Monthly Sales Roundtable - free with membership • Monthly 5 Star Breakfast Program • C Level Peer to Peer Networking • Monthly Digital Statewide Magazine - free with membership • Informative workshops • Business Behind the Scenes Tour • Legislative Updates & Representation from Madison & Washington, D.C. ...AND MORE!

Paying By Check? Please make check payable to IBAW. Want to pay credit card? If you would like to pay by Visa, MasterCard or American Express, you can pay online at IBAW.com or by calling the IBAW office at 262-844-0333.