Doyle’s budget repair plan targets use of REITs by corporations

Gov. Jim Doyle said his budget repair plan would garner $6 million for the state by preventing corporations, such as Wal-Mart, from “abusing captive real estate investment trusts (REIT) as a means of avoiding taxes on profits generated in Wisconsin.”

Gov. Jim Doyle unveiled a $527 million budget repair plan this week in an attempt to address a projected $650 million shortfall for the budget that runs through the middle of 2009.

Doyle said his plan would garner $6 million for the state by preventing corporations, such as Wal-Mart, from "abusing captive real estate investment trusts (REIT) as a means of avoiding taxes on profits generated in Wisconsin."

"All across the country, states are grappling with budget shortfalls, and here in Wisconsin we are not immune," Doyle said. "The budget repair that I am announcing today is a good, responsible plan, and it is important to act on it as quickly as possible. At the heart of it, this plan is straightforward. Just like any real solution to a budget gap, this plan cuts spending and looks for good sources of revenue, and it does it by protecting priorities like education, health care, and job creation while not raising taxes. The earlier it can be enacted, the more good it will do."

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