kochonomics in wisconsin and north carolina

8/21/2019 Kochonomics in Wisconsin and North Carolina

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Kochonomics in Wisconsin

and North CarolinaBy Anna Chu September 2014


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Kochonomics in Wisconsinand North Carolina

By Anna Chu September 2014


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1 Introduction and summary

5 The effect of Kochonomics in Wisconsin and North Caro

5 Kochonomics: The Wisconsin experience

9 Kochonomics: The North Carolina experience

12 Conclusion

13 Appendix

16 Endnotes

Contents


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1 Center for American Progress Action Fund | Kochonomics in Wisconsin and North Carolina

Introduction and summary

As heads o Koch Indusries, Inc., Americas second-larges privaely held com-

pany, a business empire heavily invesed in oil and gas, chemicals, ransporaion,

and manuacuring, he brohers Charles and David Koch are he fifh- and sixh-

riches individuals in he world,worh an esimaed $52 billion each.1Much

has been writen abou how he Koch brohers have used heir immense wealh

and influence o build a nework o influence and how hey are working o cre-

ae an economic and poliical sysem a he naional level ha is rigged or he

wealhy regardless o everyone elseor as we call i, Kochonomics. However,Kochonomics is no jus being pushed a he ederal level. Indeed, Kochonomics

has gone beyond ha and is being praciced by is oo soldiers a he sae and

local levels as well.

Tis repor ocuses on how Kochonomics is playing ou in wo saes: Wisconsin

and Norh Carolina. We chose hese saes or several reasons. Firs, he Koch

brohers have a direc financial ineres in hese saes, given ha hey own several

subsidiaries operaing in boh Norh Carolina and Wisconsin. Second, conservaive

leaders have assumed much o he eleced poliical leadership in hese saes and

have pu in place policies ha have benefied a wealhy ew wih litle o no regard

or he effecs on average axpayers. Lasly, we chose Wisconsin and Norh Carolina

because he Koch nework seleced hem as arges or heir conservaive philoso-

phy. In 2012, David Koch admited ha, Weve spen a lo o money in Wisconsin.

Were going o spend more.2im Phillips, he head o he Koch-backed issue advo-

cacy group Americans or Prosperiy, or AFP, called Norh Carolina a model sae

or is aciviies.3A ew years ago, he idea we had was o creae model saes, said

Phillips. Norh Carolina was a grea opporuniy o do hamore so han any

oher sae in he region. I you could urn around a sae like ha, you could ge

real reorm.4

Indeed, Phillips admited ha Norh Carolina was one o he saeswe were mos acive in pushing is conservaive agenda.5

We divide his repor ino hree secions. Te firs lays ou he financial sake Koch

Indusries has in Wisconsin and Norh Carolina and how public policies in hese

wo saes would affec he Kochs botom line.


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Te second secion looks a how he Koch nework has unded sae leaders in

Wisconsin and Norh Carolina who can and have pu in place policies ha benefi

he wealhy ew, including he Koch brohers, regardless o he effec such poli-

cies have on everyone else. We ocus on wo arden ollowers o Kochonomics

Wisconsin Gov. Scot Walker (R) and Norh Carolina Speaker o he House Tom

illis (R). Boh Walker and illis have received large campaign conribuionsrom Koch Indusries in heir respecive saes. Te Koch nework is also helping

Walker and illis in heir 2014 elecion campaigns: Walker is running or re-

elecion as governor and illis is vying or a U.S. Senae sea represening Norh

Carolina in one o he mos compeiive races in he counry.6

Te hird and final secion o he repor looks a he various effecs ha

Kochonomics has had on boh Wisconsin and Norh Carolina. In general, we show

ha he conservaive policies pu ino place by Koch-suppored lawmakers have

benefied he wealhy ew. Specifically, we ocus on he issue o ax and find ha:

In Wisconsin, he Koch nework aggressively pushed or ax cus ha heav-

ily avor millionaires, billionaires, and big corporaions. One o he resuling

benefis o he Kochs is ha hey could see heir income ax rae on he manu-

acuring aciviies o Koch Indusries subsidiaries in Wisconsin drop o as low

as 0.15 percen.7Conversely, over he pas our years, Wisconsins working and

low-income amilies have had o pay $170 million more in addiional axes.8

In Norh Carolina, he Koch-backed Americans or Prosperiy advocaed or

and sae lawmakers passedax cus or he wealhies 1 percen by an average

o more han $10,000 annually, while working amilies making beween $52,000

and $84,000 per year would acually have o pay an average o $74 more in

axes.9Moreover, sae lawmakers eliminaed local business axes, urher reduc-

ing he axes o Koch subsidiaries in Norh Carolina.

Koch Industries stake in Wisconsin and North Carolina

Te Kochs have numerous business ineress in Wisconsin, including a leas six

wholly owned subsidiaries in he saeGeorgia-Pacific, Flin Hills Resources,Koch Pipeline Company, L.P.,C. Reiss Coal Company, Koch Carbon LLC,and

Koch Business Soluionsand a leas wo wholly owned subsidiaries in Norh

CarolinaINVISA and Georgia-Pacific Wood Producs LLC. Because o hese

businesses, he Koch brohers have a financial sake in reducing he ax liabiliy

and regulaory obligaions o heir companies in hese saes.


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Meet the foot soldiers of Kochonomics

Wisconsin Gov. Scott Walker

Gov. Walker is no sranger o Koch largesse. Over he pas 19 years, he Wisconsin

governor has been one o he op recipiens o Koch Indusries poliical acion

commitee, or PAC, donaions in sae poliical races, according o he Naional

Insiue on Money in Sae Poliics.30During Walkers 2010 gubernaorial race,

he Koch nework donaed $43,000 o his campaign, he second-larges donaion

ha Walker received in his campaign.31

Moreover, Americans or Prosperiy srongly suppored Walker. AFP Presiden

im Phillips esimaes ha rom 2011 o 2012, he group spen $10 million

promoing Walkers conservaive policies,32which included dismanling collecive

bargaining or public secor unions, rolling back environmenal regulaions, cuting

axes,33and helping he governor wihsand a recall atemp.34AFP acions included

Georgia-Pacific, which is incorporated as a limited liability com-

pany, or LLC, and has six locations in Wisconsin and eight in North

Carolina, produces paper products.10

Flint Hills Resources, a limited partnership, or LP, is a refining

and chemical company with four locations in Wisconsin.11Among

other things, the company offers a wide variety of petroleum-based

products, including asphalt, gasoline, jet fuel, and heating oils.12

Koch Pipeline Company, L.P., which is organized as a foreign lim-

ited partnership,13owns or operates pipelines that transport crude

oil, refined petroleum, and other chemicals.14

C. Reiss Coal Companyis a coal supplier with four locations inWisconsin.15It is organized as a corporation.16

Koch Carbon LLCis registered in the state as a foreign LLC,17and

according to its website, specializes in the global sourcing, supply,

handling and transportation of bulk commodities.18The company is

a subsidiary of Koch Minerals, LLC.19Koch Minerals and its sub

ies are among the worlds largest dry-bulk commodity handl

marketing and trading more than 40 million tons of product

ally.20Koch Carbon has a registered office in Madison, Wiscon

Koch Business Solutions, LPprovides consulting and tran

tional services, such as human resources, informational techn

and finance, for subsidiaries of Koch Industries.22Koch Busine

Solutions has an office in Green Bay, Wisconsin,23and is organ

a foreign limited partnership.24

INVISTA is a wholly owned subsidiary of Koch Industries, Inc

and has a few locations in North Carolina, including one in W

ington.*

26

Among other products, it produces synthetic fibersin everything from clothing to seatbelts and chemicals used i

agricultural products, hand cleaners, and more.27 Although IN

is incorporated as an LLC in North Carolina, its country of inco

tion is Luxembourg,28a well-known tax haven.29

Koch businesses in Wisconsin and North Carolina


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ransporing Wisconsin residens o he sae capiol o suppor Walkers propos-

als35and spending more han $48,000 on elevision ads or sae Senae races in

2011.36AFP also sen absenee ballo applicaions o Wisconsin voers, hough

he ballos were prined wih he wrong dae and erroneously old voers o reurn

heir ballos beore Augus 11, 2011, despie he ac ha Elecion Day was wo

days earlier on Augus 9.37

AFP claimed his was a misake o he priner and ha iconaced individuals on is mailing lis o clariy he dae o he elecions.38

When Walkers aggressive push o conservaive policies raised voer ire, AFP

helped he governor successully figh a recall atemp.39Te group spen $1.5

million in he saes bigges media markes during he recall elecion.40Jus days

beore he recall elecion, AFP organized a muli-ciy bus our promoing Walkers

policies.41As one reporer poined ou, [g]iven he ours iming and billing, any

reasonable person would view i as a saewide drive o ge ou he voe or Walker

and his GOP allies in he June 5 elecion.42

Addiionally, AFP has dedicaed nearly $1 million hus ar in 2014 o suppor

Walkers re-elecion bid in November.43As o he publicaion o his repor,

Walker is under invesigaion or improperly coordinaing beween his poliical

campaign and independen groups.44Records show he solicied millions o dollars

or independen groups such as Wisconsin Club or Growh during he 2011 and

2012 recall elecions in Wisconsin.45

North Carolina Speaker of the House Thom Tillis

As speaker o he Norh Carolina House o Represenaives, Tom illis has re-

mendous influence over he direcion o public policy in he sae. He is also one

o he bigges recipiens o Koch Indusries campaign conribuions. According

o he Naional Insiue on Money in Sae Poliics, rom 2010 o 2012, illis

received $11,000 rom Koch Indusries, making him second-highes recipien o

Koch Indusries campaign conribuions in he ar Heel sae.46

Te Koch nework is also heavily supporing illis in his curren race or he U.S.

Senae. Charles Koch, his wie, son, and daugher-in-law each gave he maximum$2,600 campaign conribuion o illis Senae campaign, or a combined oal o

$10,400.47Koch Indusries PAC also gave $5,000 o he illis campaign.48

Addiionally, AFP has already spen nearly $9 million atacking illis opponen, he

incumben Sen. Kay Hagan (D).49Anoher Koch-backed group, Freedom Parners,

plans o spend a leas $2.8 million in he Norh Carolina Senae race as well. 50


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The effect of Kochonomics in

Wisconsin and North Carolina

Kochonomics: The Wisconsin experience

Once a Democraic-leaning sae, Wisconsin now has a Republican governor, a

Republican-dominaed sae legislaure, and a Republican in one o is wo U.S.

Senae seas.51Wisconsins new conservaive poliical leaders have wased litle

ime in passing righ-wing policies, including a hos o careully crafed and very

specific ax changes ha, i lef unchanged, would increase he size o he Kochs

pockebooks.

As governor, Scot Walker has ough or a wish lis o conservaive policies,

including dismanling he collecive bargaining righs o public secor unions,52

prevening Wisconsin ciies and counies rom passing minimum-wage require-

mens or local governmen workers and conracors,53and allowing concealed

weapons in public parks, bars, and near schools.54

Key among he policies passed are ax changes ha could increase he Koch broh-

ers financial botom line bu have harmed Wisconsin amilies.

How Koch Industries subsidiaries benefit from tax cuts

Te firs sep in undersanding how he Koch brohers benefi rom sae ax cus is

o know how Koch subsidiaries are organized. Te Koch subsidiaries in Wisconsin

and Norh Carolina are organized as limied parnerships or limied liabiliy com-

panies. Limied liabiliy companies are known as pass-hrough eniies and are

generally no axed as a corporae eniy, bu are insead axed a he member level.

Tis means ha he profis or losses o he corporaion are passed hrough o eachmemberor ownerwho hen repors he profis or losses on his or her personal

ederal ax reurn. Tere is no separae axaion a he corporae eniy level.


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Meanwhile, regular corporaions, or C corporaions, pay corporae income ax

on heir profis. Teir afer-ax profis are hen eiher re-invesed in he company

or passed hrough o he shareholders in he orm o dividends, which in urn are

subjec o individual income ax on each shareholders ax reurn. Under cerain

circumsances, eiher by law or a he elecion o he eniy, a limied parnership

may be reaed like a C corporaion or ax purposes.

In boh Wisconsin and Norh Carolina, or limied parnerships and limied

liabiliy companies ha are reaed as pass-hrough eniies, heir nonresiden

owners mus pay sae income axes or income earned in he sae.55Tus, i he

Koch subsidiaries in hose saes are reaed as pass-hrough eniies, hen heir

owner, Koch Indusries, could sand o gain subsanially rom a reducion in

sae income axes. Meanwhile, businesses se up or reaed as C corporaions are

subjec o sae corporae axes. Tis means ha a reducion o corporae income

axes would benefi he shareholders o corporaions. Tese issues become impor-

an again when assessing how much he Kochs benefi rom ax cus passed inWisconsin and Norh Carolina.

Tax cuts for mill ionaires, bill ionaires, and big corporations

but tax increases for working families

Gov. Walker has aggressively pushed o slash axes or millionaires, billionaires,

and big corporaions during his ime in office. Among he ax changes under

Walker is he Manuacuring and Agriculure ax Credi, which was signed ino

law as par o Walkers 20112013 sae budge and revised in his 20132015

budge.56Walker hen oversaw he passage o a $541 million ax-cu bill in 2014

ha would undercu he alernaive minimum axa measure originally mean

o ensure ha he wealhy earners who receive many ax deducions would sill

pay axesand allow he wealhy in Wisconsin o receive a big ax break rom he

Manuacuring and Agriculure ax Credi.57

Te Manuacuring and Agriculure ax Credi gives manuacurers and agricul-

ural businesses a dollar-or-dollar credi o 1.875% on all income rom manuac-

uring or agriculural producion on heir 2013 ax bill. Te credi would rise o3.75% in 2014, 5.526% in 2015 and 7.5% in 2016.58Tis manuacuring ax credi

could effecively zero ou all income axes or manuacurers in he sae.59


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Te Koch nework hrew is ull suppor behind Walkers conservaive budges. In

2011, AFP launched a our-day bus our under he banner, Sand Agains Spending.

Sand wih Walker. During he our, he group asked aciviss o conac heir

legislaors and urge hem o pu an end o Wisconsins ou-o-conrol sae spending

and o sand wih Walker on commonsense spending reorms.60Ten, afer passage

o he 2011 budge and ax cus, AFP parnered wih he John K. MacIver Insiueor Public Policy, a Wisconsin-based conservaive hink ank, o air elevision ads

ouing he ac ha axpayers are now back in conrol, and hose savings helped

Wisconsin avoid massive ax hikes.61AFP also launched a 10-ciy bus our hrough-

ou Wisconsin o promoe he various budge reorms passed in 2011, and o push

or even more reorms.62In oal, AFP Presiden im Phillips esimaed ha he

group spen $10 million in 2011 and 2012 promoing Walkers policies.63

In 2013, afer Walker unveiled his 2013 budge, which conained sligh revisions

o he manuacuring ax credi, AFP wen on he road again o drum up sup-

por or addiional ax cus. I hosed a leas five own hall gaherings aroundWisconsin, asking people o atend o learn abou proposed ax cus and ax

reorm and wha you can do o help push hrough ax reorm in Wisconsin.64AFP

openly called on is members o suppor ax cus.65

Walker hen signed ino law his 2014 ax bill ha conained a measure ha would

eliminae he alernaive minimum ax or recipiens o he Manuacuring and

Agriculure ax Credi, along wih he recipiens o wo oher manuacuring-

relaed ax credis.66Tis move would give away $36.8 million rom now hrough

June 2015.67As Jon Peacock, research direcor or Wisconsin Council on Children

and Families, poined ou, his was a no-srings-atached giveaway o business

owners, wihou any promise ha hey would grow heir business and no layoff

heir workers.68Te sae is oreiing a large and growing chunk o revenue wih-

ou any assurance were geting anyhing rom i, said Peacock. 69

In ac, he Manuacuring and Agriculure ax Credi benefis he already-wealhy

in Wisconsin, including he Kochs, remendously. As Jack Norman rom he

Insiue or Wisconsins Fuure described i, he ax credi is a oal giveaway o he

wealhy. Youve go a guy working a he acory making $35,000, paying his share

o axes. Meanwhile, he guy who owns he acory won pay any sae axes.70


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Tis is how i works: Te Manuacuring and Agriculure ax Credi ook effec

in 2013 and is phased in hrough 2016. By he ime i is ully phased in, i will give

manuacurers a 7.5 percen ax credi.71Tis is a dollar-or-dollar reducion o

axes on all income rom manuacuring or agriculure.72Businesses are eligible

or his ax credi i hey own or ren propery in Wisconsin ha is assessed as

manuacuring or agriculural propery and used by he claiman o manuacureor grow, produce, or exrac angible personal propery.73Te amoun o he

reducion depends on how he manuacurer is incorporaed and he amoun o

he manuacurers income:

I he manuacurer is a corporaion, i is subjec o he Wisconsin corporae

income ax rae o as high as 7.9 percen.74Afer aking he 7.5 percen credi in

2016, ha eniy s ax rae on manuacuring income could be reduced o as low

as 0.40 percen.75

I he manuacurer is a pass-hrough eniy, hen he manuacurer does nopay he Wisconsin manuacuring income ax rae o 7.9 percen. Insead, he

op ax rae o he owners o he pass-hrough eniy would be he Wisconsin

individual income ax rae o 7.65 percen.76Afer aking he credi, he ax

rae on manuacuring income or he owners o he pass-hrough eniy could

be reduced o 0.15 percen.77

Many o he Koch subsidiaries in Wisconsin would benefi rom he

Manuacuring and Agriculure ax Credi. More han a hird o he Koch subsid-

iaries locaions are considered manuacuring propery.78And as discussed above,

because hese subsidiaries are organized as pass-hrough companies, hey are no

subjec o he sae corporae ax rae, bu are subjec o he sae income ax rae.

Tus, hey would able o use his ax credi o reduce he ax rae on heir manu-

acuring income o as low as 0.15 percen.

Tis would be a massive savings or big manuacurers. For example, a company

organized as a pass-hrough eniy ha qualifies or he ax cus and makes $20

million a year rom manuacuring income in Wisconsin, would have is ax liabi-

liy or is Wisconsin manuacuring income reduced rom 7.65 percenor $1.53

milliono 0.15 percenor $30,000, or a savings o $1.5 million.


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While he Kochs would enjoy he manuacuring ax credi included in he pas

wo Walker budges, Wisconsins low-income amilies and children suffer. As

noed by he Wisconsin Budge Projec, a he same ime he governor and legis-

laure cu axes or some in Wisconsin, hey also raised axes on working ami-

lies and low-income seniors.79Specifically, while Walkers 20112013 budge

includes a massive ax break or manuacurers, including he Kochs, i wouldalso slash wo credis or working amilies and low-income peoplehe Earned

Income ax Credi and he Homesead Credi.80Combined, hese ax increases

resuled in $170 million in addiional axes paid over he las our years by wor-

king amilies and people wih low incomes.81

Kochonomics: The North Carolina experience

Over he pas ew years, conservaive orces backed by moneyed ineress swooped

ino Norh Carolina, urning he once airly moderae Souhern sae ino a basiono righ-wing policies.82Te Koch neworks invesmen in Norh Carolina helped

deliver he Koch brohers a Republican-conrolled sae legislaure and governors

mansion.83Wih a saehouse conrolled by righ-wing lawmakers and a conservaive

Republican governor, he Kochs were able o secure an ani-governmen regime ha

boosed heir financial botom line regardless o Norh Carolina amilies.

Tax cuts for the wealthy, tax hikes for working and middle-class famil ies

Te Republican leadership in Norh Carolina, including Speaker Tom illis

and he Koch-backed AFP, played major roles in passing personal and corporae

ax cus in Norh Carolina and allowing he sae Earned Income ax Credi,

or EIC, o lapse. In paricular, illis helped shepherd a ax plan hrough he

Norh Carolina House ha would cu he saes corporae and personal income

ax raes.84Meanwhile, AFP launched a hal-million-dollar campaignBack

in he Gameo champion ax cus.85AFPs $500,000 push enailed hosing

several ax rallies around he sae,86as well as evens done in conjuncion wih

he Civias Insiue, a conservaive hink ank,87and Grover Norquis, presiden

o Americans or ax Reorm88

and originaor o he axpayer Proecion Pledge,which opposes all ax increases, including hose on millionaires and billionaires.89

AFP also released a poll showing ha Norh Carolinians suppored ax reorm

along he lines o he proposed sae Senae plan,90and even pushed is agenda a

he Norh Carolina GOP pary convenion held in Charlote in 2013.91


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Te combined resul o he ax changes advocaed by AFP and passed by Koch-

backed Norh Carolina poliicianspersonal and corporae ax cus, eliminaion

o esae axes, and lapse o EICis o hand millionaires, billionaires, and big

corporaions, including he Kochs, big ax cus, while working and middle-class

amilies pay more. Te ax changes ogeher will cos he sae $2.4 billion over five

years92

and is paid or, according o he Norh Carolina Budge and ax Cener,by shifing he ax load ono middle- and low- income axpayers.93Te Norh

Carolina Budge and ax Cener saes ha he ax bill consiss largely o cuting

ax raes or personal and corporae income, in a way ha will overwhelmingly

benefi he wealhy.94Te repor wen on o say ha even proponens o he plan

acknowledge ha axpayers who make less han $84,000 per year will end up pay-

ing more in axes once he ax code goes ino effec.95

Specifically, he poores Norh Carolina axpayershose making $19,000 or

lesswould have o pay an average o $23 more in annual axes.96axpayers mak-

ing beween $52,000 and $84,000 would have o pay an average o $74 more peryear.97Meanwhile, he op 1 percen o Norh Carolina axpayershose making

$393,000 or morewould acually ge an average ax cu o$10,574 each.98

TABLE 1

Impact of recent North Carolina tax changes

2013 income level Lowest 20% Second 20% Middle 20% Fourth 20% Next 15% Next 4% Top 1

Income rangeLess than

$19,000

$19,000 to

$32,000

$32,000 to

$52,000

$52,000 to

$84,000

$84,000 to

$169,000

$169,000 to

$393,000

$393,

or mo

Average tax

change +23 +47 +59 +74 -$98 -$1,059 -$10,5

Source:Cedric Johnson, BTC Brief: Who Pays in 2014 Tax Plan Creates Winners and Losers in North Carolina (Raleigh, NC: North Carolina Budget and Tax Center, 2014), available athttp://wwtice.org/?q=budget-and-tax/btc-brief-who-pays-2014-tax-plan-creates-winners-and-losers-north-carolina.

Te Koch brohers sand o gain remendously rom hese ax cus. As owners o

limied liabiliy companies operaing in Norh Carolina, Koch Indusries and is

owners are subjec o Norh Carolina axes or profis made in he sae and are

likely huge beneficiaries o Norh Carolinas recen ax changes.

An exac esimae o he ax benefis o he Koch subsidiaries in Norh Carolinais unavailable because he Kochs have chosen o keep heir companies privae,

even as hey spend millions o dollars o influence he poliical and economic

sysem and even hough Koch Indusries is he second-larges privaely held

company in he Unied Saes, wih an esimaed $115 billion in revenue.99
http://www.ncjustice.org/?q=budget-and-tax/btc-brief-who-pays-2014-tax-plan-creates-winners-and-losers-north-carolinahttp://www.ncjustice.org/?q=budget-and-tax/btc-brief-who-pays-2014-tax-plan-creates-winners-and-losers-north-carolinahttp://www.ncjustice.org/?q=budget-and-tax/btc-brief-who-pays-2014-tax-plan-creates-winners-and-losers-north-carolinahttp://www.ncjustice.org/?q=budget-and-tax/btc-brief-who-pays-2014-tax-plan-creates-winners-and-losers-north-carolinahttp://www.ncjustice.org/?q=budget-and-tax/btc-brief-who-pays-2014-tax-plan-creates-winners-and-losers-north-carolina


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However, he inormaion ha is publicly available suggess he ax benefis o

he Kochs may be subsanial. For insance, on is websie, Georgia-Pacific boass

ha i has eigh aciliies in Norh Carolina and pays $152 million in wages and

benefis o is Norh Carolina employees.100Is size, wages, and benefis sugges

i is a company ha is a he op o he income ladder in Norh Carolina. Tus, i

could be a huge beneficiary o he Norh Carolina ax cus.

In addiion o benefiting rom a cu in personal and corporae income axes, he

Kochs and he Koch subsidiaries could also benefi rom he eliminaion o local

business axes. Tese local business axes were called privilege axes, as hey

were axes placed on businesses or he privilege o doing business in a ciy.101

A leas hree Koch subsidiaries are locaed in ciies ha had privilege axes

Wilmingon,102Creedmoor,103and Asheboro104and hus an eliminaion o hese

axes could reduce he Norh Carolina Koch subsidiaries ax liabiliies.

Bu while he Kochs could benefi rom he eliminaion o local privilege axes,ciies would lose much-needed revenue. According o an Associaed Press sory

looking a he effec o capping or eliminaing he privilege ax, Te ciies are wor-

ried he los revenue will require hem o raise propery axes, cu services or boh.

While a $100 cap could mean ciies could cumulaively lose $11 million o $25

million during he 2015-16 fiscal year, a complee prohibiion would mean a loss

o $62.2 million, according o esimaes rom legislaive saff analyzing boh bills.105

In sum, he Koch nework in Norh Carolina passed key ax changes ha would

hand he rich, including he Koch brohers, massive ax cusa bill ooed by

making working and middle-class amilies pay more in axes.


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Conclusion

Over he years, he billionaire Koch brohers have spen large sums o money o

build a vas nework o hink anks, poliical acion groups, issue advocacy organiza-

ions, and eleced officials o help achieve heir ideological vision o a small govern-

men wih an ani-ax and ani-regulaion regime. Tey employed his Kochonomics

model in Wisconsin and Norh Carolina and helped usher in a conservaive poliical

apparaus in hese saes, wih he help o Kochonomic adherens such as Wisconsin

Gov. Scot Walker and Norh Carolina Speaker o he House Tom illis.

While he Koch brohers may claim ha hey are moivaed by ideology,106he

impac o he policies hey promoed in Wisconsin and Norh Carolina benefi he

wealhyincluding he Kochs business ineress in he wo saesbu in mos

cases hur working amilies.

Tis repor raises serious quesions abou how he Koch brohers and heir affili-

aed businesses direcly benefi by aggressively advancing heir righ-wing agenda,

no jus a he ederal level bu also a he sae and local level, regardless o he

harm done o Americas working and middle-class amilies.

As he Koch influence coninues o grow, he rue agenda o Kochonomics

becomes clearer: using he neworks vas resources o ake power away rom

officials a all levels o governmen and give i o a pair o billionaire brohers and

hose who agree and profi wih hem.

*Correction, September 8, 2014:Tis report incorrectly listed Salisbury, North

Carolina, as a location of an INVISA plant. INVISA no longer operates a plant in

Salisbury but maintains plants in Wilmington and other locations.


16/23


Appendix

TABLE 1

Koch properties in Wisconsin

Name of subsidiary Address

Assessed as

manufacturing

property

Georgia-Pacific 115 Depot Road, Phillips, WI Yes

Georgia-Pacific 1927 Erie Ave., Sheboygan, WI Yes

Georgia-Pacific 411 E. Murdock Ave., Oshkosh, WI Yes

Georgia-Pacific 413 E. Murdock Ave., Oshkosh, WI No

Georgia-Pacific 1915 Marathon Ave., Neenah, WI Yes

Georgia-Pacific 1919 S. Broadway, Green Bay, WI Yes

Georgia-Pacific 500 Day St., Green Bay, WI Yes

Georgia-Pacific 1100 W. Mason St., Green Bay, WI Yes

Georgia-PacificExempt Waste Treatment Facility, North Quincy St.,

Green Bay, WIYes

Flint Hills Resources 2267 County Highway 34 North, Junction City, WI No

Flint Hills Resources 4405 Terminal Drive, McFarland, WI No

Flint Hills Resources N4240 Wisconsin Highway 26, Waupun, WI No

Flint Hills Resources 9343 N. 107th St., Milwaukee, WI No

Koch Minerals LLC 703 N. Eighth St., Suite 301, Sheboygan, WI No

Koch Minerals LLC 115 W. Mason St., Green Bay, WI No

Koch Pipeline Company LP E3660 Spruce Road, Eleva, WI No

Georgia-Pacific 1436 State St., Green Bay, WI Yes

Georgia-Pacific 1611 State St., Green Bay, WI Yes

Georgia-Pacific 603 Liberty St., Green Bay, WI Yes

Georgia-Pacific 1749 S. Broadway St., Green Bay, WI Yes

Georgia-Pacific 1001 Rear S. Broadway, Green Bay, WI Yes


17/23


Name of subsidiary Address

Assessed as

manufacturing

property

Georgia-Pacific Lease Dock, Rear S. Broadway, Green Bay, WI No

Georgia-Pacific Taxable Site, North Road, Lot 20, Green Bay, WI No

Georgia-Pacific

Exempt Waste Treatment Site, North Road, Parcel

Number 6H-1271, Green Bay, WI No

Georgia-PacificExempt Waste Treatment Site, Haven Place, Lot 12,

Green Bay, WINo

Georgia-PacificExempt Waste Treatment Site, Haven Place, Lot 13,

Green Bay, WINo

Georgia-PacificExempt Waste Treatment Site, North Road, Lot 14,

Green Bay, WINo

Georgia-PacificExempt Waste Treatment Site, North Road, Parcel

Number 6H-837-1, Green Bay, WINo

Georgia-Pacific 727 Smith St., Green Bay, WI No

Georgia-Pacific 830 N. Quincy Road, Green Bay, WI No



Georgia-Pacific 1010 N. Quincy St., Green Bay, WI No

Source: Authors subsidiary ownership and address based on data collected from property-assessment value records in counties across

Wisconsin; authors manufacturing site classifications collected from the Wisconsin Department of Revenue, Manufacturing AssessmentRolls, available at https://ww2.revenue.wi.gov/RETRWebRolls/application?previousPageRollsVRHP=previousPageRollsVRHP (last accessed July 2014).


18/23


About the author

Anna Chuis he Policy Direcor or he Cener or American Progress Acion

Fund. She brings experience serving as he policy direcor or he Democraic

Senaorial Campaign Commitee during he successul 2012 cycle ha saw

Democras adding wo seas o heir majoriy in he Senae. As policy direcor, sheoversaw and managed all policy issues or he commitee and Democraic Senae

candidaes. Prior o working a he Democraic Senaorial Campaign Commitee,

she served as he policy advisor or he House Democraic Caucus. She previ-

ously served as a ederal law clerk and worked as an associae a Paul Hasings.

Chu graduaed rom he Universiy o Caliornia, Berkeley, and has a J.D. rom he

Universiy o Souhern Caliornia.

Acknowledgements

Te auhor would like o hank ony Carrk, iffany Germain, Jeff Barrera, Rob

Cohen, Nicholas Ahamed, Chrisa Chiao, and Leah Hughes or heir assisance.


19/23


Endnotes

1 Bloomberg, Bloomberg Billionaires, Todays rankingof the worlds richest people, available athttp://www.bloomberg.com/billionaires/latest (last accessed July2014).

2 Stacey Singer, David Koch intends to cure cancer in his

lifetime and remake American politics, The Palm BeachPost,February 20, 2012, available athttp://www.palm-beachpost.com/news/business/david-koch-intends-to-cure-cancer-in-his-lifetime-/nL4Fb/.

3 Tarini Parti, GOP, Koch brothers find theres nothingfiner than Carolina, Politico, May 11, 2013, available athttp://www.politico.com/story/2013/05/koch-brothers-republicans-north-carolina-91200.html?hp=t1.

4 Ibid.

5 Ibid.

6 Daniel Strauss, Conservative Americans For ProsperityPours Major Cash Into Walker Race, Talking PointsMemo, May 27, 2014, available at http://talkingpoints-memo.com/livewire/scott-walker-americans-for-prosperity-re-election;John Frank, Koch family maxes

out for Thom Tillis campaign, News & Observer Underthe Dome Blog, July 23, 20 14, available at http://www.newsobserver.com/2014/07/23/4025187/koch-family-maxes-out-for-thom.html#storylink=cpy.

7 When the Manufacturing and Agriculture Tax Creditwas first passed in 2011, the Milwaukee Journal Sentinelreported that alturing and Agriculture Tax Credit wasfirst passed iwhose shareholders pay the firms taxas personal income taxwould be able to reducetheir rate from as much as 7.75% to 0.25% or less.1, theis-lifetime-/nLBusiness production tax break addedto state budget, Milwaukee Journal Sentinel, June6, 2011. However, this was before the top personalincome tax rate was lowered to 7.65 percent. Citizensfor Tax Justice Staff, Bad budgets become law in Ohioand Wisconsin, Citizens for Tax Justice Blog, July 1,2013, available at http://www.ctj.org/taxjusticedigest/archive/2013/07/bad_budgets_become_law_in_ohio.

php#.U6sXYrH266-. The tax credit applied against thecurrent personal income tax rate of 7.65 percent wouldyield a maximum tax rate of 0.15 percent of applicableincome derived from manufacturing or agricultureproperty in Wisconsin.

8 Tamarine Cornelius, Breaking with Tradition: HowWisconsin lawmakers have shortchanged a legacy ofinvestment in the states future (Madison, WI: Wiscon-sin Budget Project, 2014), available athttp://www.wisconsinbudgetproject.org/breaking-with-tradition-how-wisconsin-lawmakers-have-shortchanged-a-legacy-of-investment-in-the-states-future.

9 Cedric Johnson, BTC Brief: Who Pays in 2014 Tax PlanCreates Winners and Losers in North Carolina (Raleigh,NC: North Carolina Budget and Tax Center, 2014), avail-able athttp://www.ncjustice.org/?q=budget-and-tax/btc-brief-who-pays-2014-tax-plan-creates-winners-

and-losers-north-carolina.

10 Georgia-Pacific, Georgia-Pacific Locations, availableat http://www.gp.com/Company/Company-Overview/Locations(last accessed June 2014).

11 Tony Carrk, The Koch Brothers: What You Need toKnow About the Financiers of the Radical Right(Washington: Center for American Progress ActionFund, 2011), available at http://www.americanprogres-saction.org/issues/regulation/report/2011/04/04/9399/the-koch-brothers/; Wisconsin Department of Financial

Institutions, Flint Hills Resources, Limited Partnership,available at https://www.wdfi.org/apps/CorpSearch/Details.aspx?entityID=K025584&hash=1374122908&searchFunctionID=6bca2392-23a0-47af-87be-fb523c6ef4c3&type=Simple&q=Flint+Hills (last accessed June2014).

12 Flint Hills Resources, Flint Hills available at http://www.fhr.com/about/default.aspx?AspxAutoDetectCookieSupport=1(last accessed August 2014).

13 Wisconsin Department of Financial Institutions, KochPipeline Company, LP, available at https://www.wdfi.org/apps/CorpSearch/Details.aspx?entityID=K0258-71&hash=2119123584&searchFunctionID=3e0db62e-73e5-4608-84e5-e7f5e184fe38&type=Simple&q=Koch+Pipeline (last accessed July 2014).

14 Koch Pipeline Company, L.P.,

lt.aspx?AspxAutoDetectCookie, available athttp://kochpipeline.com/about-us/kpl-facts/(last accessedAugust 2014).

15 Koch Industries, nd.com/files/wisconsinfactse athttps://www.kochind.com/files/wisconsinfacts.pdf(lastaccessed June 2014).

16 Wisconsin Department of Financial Institutions, The C.Reiss Coal Company, available athttps://www.wdfi.org/apps/CorpSearch/Details.aspx?entityID=1R00259&hash=1365327135&searchFunctionID=e3e77a04-8d94-43b8-b77d-e97c2d14718f&type=Simple&q=C.+Reiss+Coal(last accessed July 2014).

17 Wisconsin Department of Financial Institutions, KochCarbon, LLC, available athttps:// www.wdfi.org/apps/CorpSearch/Details.aspx?entityID=K030409&hash=1978086230&searchFunctionID=e61de334-3db3-

4072-ba60-d7af312a0e89&type=Simple&q=Koch (lastaccessed June 2014).

18 Koch Industries, Koch Minerals, LLC, available at http://www.kochind.com/companies/koch_minerals.aspx(last accessed June 2014).

19 Ibid.

20 Ibid.

21 Wisconsin Department of Financial Institutions, KochCarbon, LLC..

22 Koch Busine ss Solutions, LP, available at http://www.kbslp.com/(last accessed June 2014).

23 Koch Industries, Global Presence, available athttp://www.kochind.com/About_Koch/Global_Presence.aspx

(last accessed June 2014).

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?entityID=K030409&hash=1978086230&searchFunctionID=e61de334-3db3-4072-ba60-d7af312a0e89&type=Simple&q=Kochhttps://www.wdfi.org/apps/CorpSearch/Details.aspx?entityID=K030409&hash=1978086230&searchFunctionID=e61de334-3db3-4072-ba60-d7af312a0e89&type=Simple&q=Kochhttps://www.wdfi.org/apps/CorpSearch/Details.aspx?entityID=K030409&hash=1978086230&searchFunctionID=e61de334-3db3-4072-ba60-d7af312a0e89&type=Simple&q=Kochhttp://www.kochind.com/companies/koch_minerals.aspxhttp://www.kochind.com/companies/koch_minerals.aspxhttp://www.kbslp.com/http://www.kbslp.com/http://www.kochind.com/About_Koch/Global_Presence.aspxhttp://www.kochind.com/About_Koch/Global_Presence.aspxhttps://www.wdfi.org/apps/CorpSearch/Details.aspx?entityID=K037731&hash=132094918&searchFunctionID=e61de334-3db3-4072-ba60-d7af312a0e89&type=Simple&q=Kochhttps://www.wdfi.org/apps/CorpSearch/Details.aspx?entityID=K037731&hash=132094918&searchFunctionID=e61de334-3db3-4072-ba60-d7af312a0e89&type=Simple&q=Kochhttps://www.wdfi.org/apps/CorpSearch/Details.aspx?entityID=K037731&hash=132094918&searchFunctionID=e61de334-3db3-4072-ba60-d7af312a0e89&type=Simple&q=Kochhttps://www.wdfi.org/apps/CorpSearch/Details.aspx?entityID=K037731&hash=132094918&searchFunctionID=e61de334-3db3-4072-ba60-d7af312a0e89&type=Simple&q=Kochhttps://www.wdfi.org/apps/CorpSearch/Details.aspx?entityID=K037731&hash=132094918&searchFunctionID=e61de334-3db3-4072-ba60-d7af312a0e89&type=Simple&q=Kochhttps://www.wdfi.org/apps/CorpSearch/Details.aspx?entityID=K037731&hash=132094918&searchFunctionID=e61de334-3db3-4072-ba60-d7af312a0e89&type=Simple&q=Kochhttps://www.wdfi.org/apps/CorpSearch/Details.aspx?entityID=K037731&hash=132094918&searchFunctionID=e61de334-3db3-4072-ba60-d7af312a0e89&type=Simple&q=Kochhttps://www.wdfi.org/apps/CorpSearch/Details.aspx?entityID=K037731&hash=132094918&searchFunctionID=e61de334-3db3-4072-ba60-d7af312a0e89&type=Simple&q=Kochhttp://www.kochind.com/About_Koch/Global_Presence.aspxhttp://www.kochind.com/About_Koch/Global_Presence.aspxhttp://www.kbslp.com/http://www.kbslp.com/http://www.kochind.com/companies/koch_minerals.aspxhttp://www.kochind.com/companies/koch_minerals.aspxhttps://www.wdfi.org/apps/CorpSearch/Details.aspx?entityID=K030409&hash=1978086230&searchFunctionID=e61de334-3db3-4072-ba60-d7af312a0e89&type=Simple&q=Kochhttps://www.wdfi.org/apps/CorpSearch/Details.aspx?entityID=K030409&hash=1978086230&searchFunctionID=e61de334-3db3-4072-ba60-d7af312a0e89&type=Simple&q=Kochhttps://www.wdfi.org/apps/CorpSearch/Details.aspx?entityID=K030409&hash=1978086230&searchFunctionID=e61de334-3db3-4072-ba60-d7af312a0e89&type=Simple&q=Kochhttps://www.wdfi.org/apps/CorpSearch/Details.aspx?entityID=K030409&hash=1978086230&searchFunctionID=e61de334-3db3-4072-ba60-d7af312a0e89&type=Simple&q=Kochhttps://www.wdfi.org/apps/CorpSearch/Details.aspx?entityID=1R00259&hash=1365327135&searchFunctionID=e3e77a04-8d94-43b8-b77d-e97c2d14718f&type=Simple&q=C.+Reiss+Coalhttps://www.wdfi.org/apps/CorpSearch/Details.aspx?entityID=1R00259&hash=1365327135&searchFunctionID=e3e77a04-8d94-43b8-b77d-e97c2d14718f&type=Simple&q=C.+Reiss+Coalhttps://www.wdfi.org/apps/CorpSearch/Details.aspx?entityID=1R00259&hash=1365327135&searchFunctionID=e3e77a04-8d94-43b8-b77d-e97c2d14718f&type=Simple&q=C.+Reiss+Coalhttps://www.wdfi.org/apps/CorpSearch/Details.aspx?entityID=1R00259&hash=1365327135&searchFunctionID=e3e77a04-8d94-43b8-b77d-e97c2d14718f&type=Simple&q=C.+Reiss+Coalhttps://www.wdfi.org/apps/CorpSearch/Details.aspx?entityID=1R00259&hash=1365327135&searchFunctionID=e3e77a04-8d94-43b8-b77d-e97c2d14718f&type=Simple&q=C.+Reiss+Coalhttps://www.kochind.com/files/wisconsinfacts.pdfhttp://kochpipeline.com/about-us/kpl-facts/http://kochpipeline.com/about-us/kpl-facts/https://www.wdfi.org/apps/CorpSearch/Details.aspx?entityID=K025871&hash=2119123584&searchFunctionID=3e0db62e-73e5-4608-84e5-e7f5e184fe38&type=Simple&q=Koch+Pipelinehttps://www.wdfi.org/apps/CorpSearch/Details.aspx?entityID=K025871&hash=2119123584&searchFunctionID=3e0db62e-73e5-4608-84e5-e7f5e184fe38&type=Simple&q=Koch+Pipelinehttps://www.wdfi.org/apps/CorpSearch/Details.aspx?entityID=K025871&hash=2119123584&searchFunctionID=3e0db62e-73e5-4608-84e5-e7f5e184fe38&type=Simple&q=Koch+Pipelinehttps://www.wdfi.org/apps/CorpSearch/Details.aspx?entityID=K025871&hash=2119123584&searchFunctionID=3e0db62e-73e5-4608-84e5-e7f5e184fe38&type=Simple&q=Koch+Pipelinehttps://www.wdfi.org/apps/CorpSearch/Details.aspx?entityID=K025871&hash=2119123584&searchFunctionID=3e0db62e-73e5-4608-84e5-e7f5e184fe38&type=Simple&q=Koch+Pipelinehttp://www.fhr.com/about/default.aspx?AspxAutoDetectCookieSupport=1http://www.fhr.com/about/default.aspx?AspxAutoDetectCookieSupport=1http://www.fhr.com/about/default.aspx?AspxAutoDetectCookieSupport=1https://www.wdfi.org/apps/CorpSearch/Details.aspx?entityID=K025584&hash=1374122908&searchFunctionID=6bca2392-23a0-47af-87be-fb523c6ef4c3&type=Simple&q=Flint+Hillshttps://www.wdfi.org/apps/CorpSearch/Details.aspx?entityID=K025584&hash=1374122908&searchFu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25 INVISTA, About INVISTA, available athttp://invistaca-reers.com/about-history.php(last accessed June 2014).

26 Koch Industries, Global Presence.

27 INVISTA, Its Not Our Name, Its Our Products, availableat http://invistacareers.com/products.php(last ac-cessed August 2014).

28 North Carolina Department of the Secretary of State,Corporations, available at http://www.secretary.state.nc.us/corporations/Corp.aspx?PitemId=4882055(last

accessed June 2014).

29 The issue of whether the Kochs are able to evadecertain U.S. taxes through INVISTAs location in a well-known tax haven is outside the scope of this report.Neil Maclucas, Tax havens (other than Switzerland)feeling the heat from tax collectors, The Wall StreetJournal, May 19, 2014, available at http://blogs.wsj.com/law/2014/05/19/tax-havens-other-than-switzer-land-feeling-the-heat-from-tax-collectors/.

30 National Institute on Money in State Politics, KochIndustries: Non-Individual, available at http://beta.followthemoney.org/entity-details?eid=1457(last ac-cessed August 2014).

31 Andy Kroll, Wisconsin Gov. Scott Walker: Funded bythe Koch Bros., Mother Jones, February 18, 2011, avail-able at http://www.motherjones.com/mojo/2011/02/

wisconsin-scott-walker-koch-brothers.

32 Jack Craver, Dark money: How Wisconsin14).g/entity-details?eid=1457rals.aspx vailable at =1 7rals.aspxvailab The Capital Times, January 15, 2014, availableat http://host.madison.com/news/local/writers/jack_craver/dark-money-how-wisconsin-s-most-politically-influential-organizations-avoid/article_8ddf078f-1112-5f44-9268-cb9e5f2d3fd2.html.

33 Office of Gov. Scott Walker, Governor Walker Intro-duces Budget Repair,overnor Walker February 11, 2011,available at http://walker.wi.gov/newsroom/press-re-lease/governor-walker-introduces-budget-repair;Politi-Fact, Wisconsin Gov. Scott Walker says his budget-re-pair bill would leave collective bargaining fully intact,February 18, 2011, available athttp://www.politifact.com/wisconsin/statements/2011/feb/18/scott-walker/wisconsin-gov-scott-walker-says-his-budget-repair-/;

A. G. Sulzberg, Union bill is law, but debate is far fromover,nThe New York Times, March 12, 2011, available athttp://www.nytimes.com/2011/03/12/us/12wisconsin.html?_r=0&gwh=93625004FAB97E2E7F6072E3A0C421C0&gwt=pay.

34 Alex Roarty, The Long Game: Americans for Prosperityis just getting started, National Journal, June 12, 2014,available at http://www.nationaljournal.com/maga-zine/the-long-game-20140612.

35 Eric Lipton, Billionaire brothers/law/2014/05/19/tarsn Wisconsin dispute,iThe New York Times,February 22, 2011, available athttp://www.nytimes.com/2011/02/22/us/22koch.html?pagewanted=all&_r=0&gwh=0B626AC8B2B366653BA253150202019C&gwt=pay.

36 Kantar Media/CMAG with analysis by the Center for

American Progress Action Fund.

37 David Catanese, Americans for Prosperity: Wrong datea n Progress Action F Politico, August 2, 2011, availableat http://www.politico.com/news/stories/0811/60515.html.

38 Greg Sargent, Americans for Prosperity sent mislead-ing absentee ballot far more widely than previouslyknown, The Washington Post, August 5, 2011, availableat http://www.washingtonpost.com/blogs/plum-line/post/americans-for-prosperity-sent-misleading-absentee-ballot-far-more-widely-than-previously-known/2011/03/03/gIQAxhcywI_blog.html.

39 Roarty, The Long Game.

40 Kathy Kiely, Americans for Prosperity campaignswithout leaving a paper trail in Wisconsin, Sunlight

Foundation Blog, June 7, 2012, available athttp://sunlightfoundation.com/blog/2012/06/07/americans-prosperity-campaigns-without-leaving-paper-trail-wisco/.

41 Andy Kroll, Americans for Prosperity: Our Pro-Walkerbus tour has nothing to do with recall,Mother Jones,May 28, 2012, available at http://www.motherjones.com/mojo/2012/05/americans-for-prosperity-wiscon-sin-bus-tour-walker-recall.

42 Ibid.

43 Strauss, Conservative Americans For Prosperity PoursMajor Cash Into Walker Race.

44 Matthew DeFour, Scott Walker solicited money forconservative groups, records show, Wisconsin StateJournal, August 23, 2014, available at http://host.madi-

son.com/news/local/govt-and-politics/scott-walker-solicited-money-for-conservative-group-records-show/article_e17d6f2a-f423-5a1f-9b2e-464c4f18b174.html.

45 Ibid.

46 National Institute on Money in State Politics, ShowingKoch Industries contributions to Candidates and Com-mittees on reports filed in North Carolina, availableat http://beta.followthemoney.org/show-me?d-eid=1457&f-s=NC#[{1|gro=f-eid(last accessed August2014).

47 Frank, Koch family maxes out for Thom Tillis campaign.

48 Ibid.

49 Renee Schoof, Tillis raises $1.6 million in secondquarter, News & Observer, July 11, 2014, available at

http://www.newsobserver.com/2014/07/11/4000323/tillis-raises-16-million-in-second.html.

50 Alexis Levinson, Freedom Partners Dives Into NorthCarolina Senate Race, CQ Roll Call, July 22, 2014,available at http://atr.rollcall.com/kay-hagan-freedom-partners-thom-tillis-north-carolina-senate/.

51 Craig Gilbert, River of red buries the blue,MilwaukeeJournal Sentinel, November 3, 2010, available at http://www.jsonline.com/news/statepolitics/106589258.html.

52 Office of Gov. Scott Walker, Governor Walker Intro-duces Budget Repair; PolitiFact, Wisconsin Gov. ScottWalker says his budget-repair bill would leave collectivebargaining fully intact,; Sulzberg, Union bill is law, butdebate is far from over.

53 Wisconsin State Legislature, Assembly Bill 750, avail-

able at https://docs.legis.wisconsin.gov/2013/propos-als/ab750 (last accessed June 2014); Wisconsin StateLegislature, Wisconsin Assembly: AB 750 Preemptionof Local Living Wage Ordinances, available at https://docs.legis.wisconsin.gov/2013/related/votes/assembly/av0370(last accessed August 2014).
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h-carolina-senate/http://www.jsonline.com/news/statepolitics/106589258.htmlhttp://www.jsonline.com/news/statepolitics/106589258.htmlhttps://docs.legis.wisconsin.gov/2013/proposals/ab750https://docs.legis.wisconsin.gov/2013/proposals/ab750https://docs.legis.wisconsin.gov/2013/related/votes/assembly/av0370https://docs.legis.wisconsin.gov/2013/related/votes/assembly/av0370https://docs.legis.wisconsin.gov/2013/related/votes/assembly/av0370https://docs.legis.wisconsin.gov/2013/related/votes/assembly/av0370https://docs.legis.wisconsin.gov/2013/related/votes/assembly/av0370https://docs.legis.wisconsin.gov/2013/related/votes/assembly/av0370https://docs.legis.wisconsin.gov/2013/proposals/ab750https://docs.legis.wisconsin.gov/2013/proposals/ab750http://www.jsonline.com/news/statepolitics/106589258.htmlhttp://www.jsonline.com/news/statepolitics/106589258.htmlhttp://atr.rollcall.com/kay-hagan-freedom-partners-thom-tillis-north-carolina-senate/http://atr.rollcall.com/kay-hagan-freedom-partners-thom-tillis-north-carolina-senate/http://www.newsobserver.com/2014/07/11/4000323/tillis-raises-16-million-in-second.htmlhttp://www.newsobserver.com/2014/07/11/4000323/tillis-raises-16-million-in-second.htmlhttp://beta.followthemoney.org/show-me?d-eid=1457&f-s=NC#[{1|gro=f-eidhttp://beta.followthemoney.org/show-me?d-eid=1457&f-s=NC#[{1|gro=f-eidhttp://www.motherjones.com/mojo/2012/05/americans-for-prosperity-wisconsin-bus-tour-walker-recallhttp://www.motherjones.com/mojo/2012/05/americans-for-prosperity-wisconsin-bus-tour-walker-recallhttp://www.motherjones.com/mojo/2012/05/americans-for-prosperity-wisconsin-bus-tour-walker-recallhttp://sunlightfoundation.com/blog/2012/06/07/americans-prosperity-campaigns-without-leaving-paper-trail-wisco/http://sunlightfoundation.com/blog/2012/06/07/americans-prosperity-campaigns-without-leaving-paper-trail-wisco/http://sunlightfoundation.com/blog/2012/06/07/americans-prosperity-campaigns-without-leaving-paper-trail-wisco/http://sunlightfoundation.com/blog/2012/06/07/americans-prosperity-campaigns-without-leaving-paper-trail-wisco/http://www.washingtonpost.com/blogs/plum-line/post/americans-for-prosperity-sent-misleading-absentee-ballot-far-more-widely-than-previously-known/2011/03/03/gIQAxhcywI_blog.htmlhttp://www.washingtonpost.com/blogs/plum-line/post/americans-for-prosperity-sent-misleading-absentee-ballot-far-more-widely-than-previously-known/2011/03/03/gIQAxhcywI_blog.htmlhttp://www.washingtonpost.com/blogs/plum-line/post/americans-for-prosperity-sent-misleading-absentee-ballot-far-more-widely-than-previously-known/2011/03/03/gIQAxhcywI_blog.htmlhttp://www.washingtonpost.com/blogs/plum-line/post/americans-for-prosperity-sent-misleading-absentee-ballot-far-more-widely-than-previously-known/2011/03/03/gIQAxhcywI_blog.htmlhttp://www.politico.com/news/stories/0811/60515.htmlhttp://www.politico.com/news/stories/0811/60515.htmlhttp://www.nytimes.com/2011/02/22/us/22koch.html?pagewanted=all&_r=0&gwh=0B626AC8B2B366653BA253150202019C&gwt=payhttp://www.nytimes.com/2011/02/22/us/22koch.html?pagewanted=all&_r=0&gwh=0B626AC8B2B366653BA253150202019C&gwt=payhttp://www.nytimes.com/2011/02/22/us/22koch.html?pagewanted=all&_r=0&gwh=0B626AC8B2B366653BA253150202019C&gwt=payhttp://www.nytimes.com/2011/02/22/us/22koch.html?pagewanted=all&_r=0&gwh=0B626AC8B2B366653BA253150202019C&gwt=payhttp://www.nationaljournal.com/magazine/the-long-game-20140612http://www.nationaljournal.com/magazine/the-long-game-20140612http://www.nytimes.com/2011/03/12/us/12wisconsin.html?_r=0&gwh=93625004FAB97E2E7F6072E3A0C421C0&gwt=payhttp://www.nytimes.com/2011/03/12/us/12wisconsin.html?_r=0&gwh=93625004FAB97E2E7F6072E3A0C421C0&gwt=payhttp://www.nytimes.com/2011/03/12/us/12wisconsin.html?_r=0&gwh=93625004FAB97E2E7F6072E3A0C421C0&gwt=payhttp://www.politifact.com/wisconsin/statements/2011/feb/18/scott-walker/wisconsin-gov-scott-walker-says-his-budget-repair-/http://www.politifact.com/wisconsin/statements/2011/feb/18/scott-walker/wisconsin-gov-scott-walker-says-his-budget-repair-/http://www.politifact.com/wisconsin/statements/2011/feb/18/scott-walker/wisconsin-gov-scott-walker-says-his-budget-repair-/http://walker.wi.gov/newsroom/press-release/governor-walker-introduces-budget-repairhttp://walker.wi.gov/newsroom/press-release/governor-walker-introduces-budget-repairhttp://host.madison.com/news/local/writers/jack_craver/dark-money-how-wisconsin-s-most-politically-influential-organizations-avoid/article_8ddf078f-1112-5f44-9268-cb9e5f2d3fd2.htmlhttp://host.madison.com/news/local/writers/jack_craver/dark-money-how-wisconsin-s-most-politically-influential-organizations-avoid/article_8ddf078f-1112-5f44-9268-cb9e5f2d3fd2.htmlhttp://host.madison.com/news/local/writers/jack_craver/dark-money-how-wisconsin-s-most-politically-influential-organizations-avoid/article_8ddf078f-1112-5f44-9268-cb9e5f2d3fd2.htmlhttp://host.madison.com/news/local/writers/jack_craver/dark-money-how-wisconsin-s-most-politically-influential-organizations-avoid/article_8ddf078f-1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54 Patrick Marley and Bill Glauber, Wisconsin Senatepasses concealed-carry bill,Milwaukee Journal Sentinel,June 14, 2011, available at http://www.jsonline.com/news/statepolitics/123826279.html.

55 Wisconsin Department of Revenue, Limited LiabilityCompanies (LLCs)(L2014), available athttp://www.rev-enue.wi.gov/pubs/pb119.pdf;North Carolina GeneralAssembly, Enacted Legislation North Carolina taxableincome defined, available at http://www.ncga.state.nc.us/EnactedLegislation/Statutes/HTML/BySection/Chapter_105/GS_105-134.5.html(last accessed June

2014); North Carolina Legislature, Enacted Legislation,Chapter 105, available atwww.ncleg.net/EnactedLeg-islation/Statutes/PDF/BySection/Chapter_105/GS_105-134.pdf(last accessed June 2014).

56 Gallagher, Business production tax break added tostate budget; Wisconsin Manufacturers & Commerce,Phase-In of the Manufacturing & Agriculture Credit,June 14, 2013, available at https://www.wmc.org/issues/issues-policy/phase-in-of-the-manufacturing-agriculture-credit/; Jason Stein, Some factory, farmowners would get an extra tax break under Walkerplan, Milwaukee Journal Sentinel, March 1, 2014, avail-able at http://www.jsonline.com/news/statepolitics/some-factory-farm-owners-would-get-extra-tax-break-under-walker-plan-b99215578z1-248046631.html.

57 Stein, Some factory, farm owners would get an extratax break under Walker plan.

58 Gallagher, Business production tax break added tostate budget.t

59 Patrick Marley and Jason Stein, Scott Walker signs$541 million tax legislation,Milwaukee Journal Sentinel,March 24, 2014, available athttp://www.jsonline.com/news/statepolitics/scott-walker-set-to-sign-tax-cut-legislation-b99231851z1-251936261.html.

60 Stand Against Spending. Stand with Walker, Americansfor Prosperity Facebook, March 3, 2011-March 6, 2011,accessed on June 29, 2014, available athttps://www.facebook.com/events/114184561992796/.

61 Americans for Prosperity Foundation-Wisconsin, AFPFoundation-Wisconsin and the John K. Maciver Insti-tute Air Did it Right Commercial, Press release, January3, 2013, available at http://americansforprosperityfoun-

dation.com/newsroom/afp-foundation-wisconsin-and-the-john-k-maciver-institute-air-did-it-right-commer-cial.

62 Americans for Prosperity Foundation, A Better Wiscon-sin Bus Tour, available at http://americansforprosperity-foundation.com/abetterwisconsin-2(last accessed June2014).

63 Craver, Dark money.

64 Americans for Prosperity-Wisconsin, AFP-WI TaxReform Town Hall-Oshkosh, available at http://americansforprosperity.org/wisconsin/event/afp-wi-tax-reform-town-hall-oshkosh/(last accessedAugust 2014); Americans for Prosperity-Wisconsin,AFP WI-Tax Reform Town Hall-Green Bay, available athttp://americansforprosperity.org/wisconsin/event/afp-wi-tax-reform-town-hall-green-bay/(last accessed

August 2014); Americans for Prosperity-Wisconsin,AFP WI-Tax Reform Town Hall-Appleton, available athttp://americansforprosperity.org/wisconsin/event/afp-wi-tax-reform-town-hall-appleton/(last accessed

August 2014); Americans for Prosperity-Wisconsin,AFP WI-Tax Reform Town Hall-Green Lake, availableat http://americansforprosperity.org/wisconsin/event/afp-wi-tax-reform-town-hall-green-lake/(last accessedAugust 2014); Americans for Prosperity-Wisconsin,AFP WI-Tax Reform Town Hall-Sheboygan, availableat http://americansforprosperity.org/wisconsin/event/afp-wi-tax-reform-town-hall-sheboygan/(last accessedAugust 2014).

65 Americans for Prosperity-Wisconsin, Support the TaxCut, May 1, 2013, available at http://americansforpros-

perity.org/wisconsin/legislativealerts/support-the-tax-cut/.

66 Stein, Some factory, farm owners would get an extratax break under Walker plan.

67 Ibid.

68 Ibid.

69 Ibid.

70 Mike Ivey, Windfall? Rich will get richer from newtax credit,The Capital Times, May 23, 2012, availableat http://host.madison.com/business/biz_beat/windfall-rich-will-get-richer-from-new-tax-credit/ar-ticle_bfe745dc-a44a-11e1-a1b6-001a4bcf887a.html.

71 Gallagher, Business production tax break added to

state budget.

72 Ibid.

73 Wisconsin Manufacturers & Commerce, Phase-In ofthe Manufacturing & Agriculture Credit, June 14, 2013,available at https://www.wmc.org/issues/issues-policy/phase-in-of-the-manufacturing-agriculture-credit/.

74 Tamarine Cornelius and Jon Peacock, New Year BringsNew Tax Cuts to Wisconsin (Madison, WI: WisconsinBudget Project, 2013), available athttp://www.wiscon-sinbudgetproject.org/new-year-brings-new-tax-cuts-to-wisconsin-previously-passed-cuts-and-credits-will-reduce-revenue-by-262-million-in-2013-15.

75 Wisconsin Manufacturers & Commerce, Phase-in of theManufacturing & Agriculture Credit.t

76 Wisconsin Department of Revenue, Tax Rates, avail-able at http://www.revenue.wi.gov/faqs/pcs/taxrates.html#tx1a (last accessed June 2014).

77 See endnote 8.

78 See Appendix.

79 Cornelius, Breaking with Tradition.

80 Ibid.; Wisconsin Budget Project, Top 10 Reasons toIncrease Tax Credits for Low-income Households,February 6, 2014, available at http://www.wisconsin-budgetproject.org/top-10-reasons-to-increase-tax-credits-for-low-income-households.

81 Cornelius, Breaking with Tradition.

82 Bridge Project, How Conservatives Took Over North

Carolina (2014), available athttp://www.bridgeproject.com/research/how-conservatives-took-over-north-carolina/.
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in-2013-15http://www.wisconsinbudgetproject.org/top-10-reasons-to-increase-tax-credits-for-low-income-householdshttp://www.wisconsinbudgetproject.org/top-10-reasons-to-increase-tax-credits-for-low-income-householdshttp://www.wisconsinbudgetproject.org/top-10-reasons-to-increase-tax-credits-for-low-income-householdshttp://www.bridgeproject.com/research/how-conservatives-took-over-north-carolina/http://www.bridgeproject.com/research/how-conservatives-took-over-north-carolina/http://www.bridgeproject.com/research/how-conservatives-took-over-north-carolina/http://www.bridgeproject.com/research/how-conservatives-took-over-north-carolina/http://www.bridgeproject.com/research/how-conservatives-took-over-north-carolina/http://www.bridgeproject.com/research/how-conservatives-took-over-north-carolina/http://www.wisconsinbudgetproject.org/top-10-reasons-to-increase-tax-credits-for-low-income-householdshttp://www.wisconsinbudgetproject.org/top-10-reasons-to-increase-tax-credits-for-low-income-householdshttp://www.wisconsinbudgetproject.org/top-10-reasons-to-increase-tax-credits-for-low-income-householdshttp://www.wisconsinbudgetproject.org/new-year-brings-new-tax-cuts-to-wisconsin-previously-passed-cuts-and-credits-will-reduce-revenue-by-262-million-in-2013-15http://www.wisconsinbudgetproject.org/new-year-brings-new-tax-cuts-to-wisconsin-previously-passed-cuts-and-credits-will-reduce-revenue-by-262-million-in-2013-15http://www.wisconsinbudgetproject.org/new-year-brings-new-tax-cuts-to-wisconsin-previously-passed-cuts-and-credits-will-reduce-revenue-by-262-million-in-2013-15http://www.wisconsinbudgetproject.org/new-year-brings-new-tax-cuts-to-wisconsin-previously-passed-cuts-and-credits-will-reduce-revenue-by-262-million-in-2013-15https://www.wmc.org/issues/issues-policy/phase-in-of-the-manufacturing-agriculture-credit/https://www.wmc.org/issues/issues-policy/phase-in-of-the-manufacturing-agriculture-credit/http://host.madison.com/business/biz_beat/windfall-rich-will-get-richer-from-new-tax-credit/article_bfe745dc-a44a-11e1-a1b6-001a4bcf887a.htmlhttp://host.madison.com/business/biz_beat/windfall-rich-will-get-richer-from-new-tax-credit/article_bfe745dc-a44a-11e1-a1b6-001a4bcf887a.htmlhttp://host.madison.com/business/biz_beat/windfall-rich-will-get-richer-from-new-tax-credit/article_bfe745dc-a44a-11e1-a1b6-001a4bcf887a.htmlhttp://americansforprosperity.org/wisconsin/legislativealerts/support-the-tax-cut/http://americansforprosperity.org/wisconsin/legislativealerts/support-the-tax-cut/http://americansforprosperity.org/wisconsin/legislativealerts/support-the-tax-cut/http://americansforprosperity.org/wisconsin/event/afp-wi-tax-reform-town-hall-sheboygan/http://americansforprosperity.org/wisconsin/event/afp-wi-tax-reform-town-hall-sheboygan/http://americansforprosperity.org/wisconsin/event/afp-wi-tax-reform-town-hall-green-lake/http://americansforprosperity.org/wisconsin/event/afp-wi-tax-reform-town-hall-green-lake/http://americansforprosperity.org/wisconsin/event/afp-wi-tax-reform-town-hall-appleton/http://americansforprosperity.org/wisconsin/event/afp-wi-tax-reform-town-hall-appleton/http://americansforprosperity.org/wisconsin/event/afp-wi-tax-reform-town-hall-green-bay/http://americansforprosperity.org/wisconsin/event/afp-wi-tax-reform-town-hall-green-bay/http://americansforprosperity.org/wisconsin/event/afp-wi-tax-reform-town-hall-oshkosh/http://americansforprosperity.org/wisconsin/event/afp-wi-tax-reform-town-hall-oshkosh/http://americansforprosperity.org/wisconsin/event/afp-wi-tax-reform-town-hall-oshkosh/http://americansforprosperityfoundation.com/abetterwisconsin-2http://americansforprosperityfoundation.com/abetterwisconsin-2http://americansforprosperityfoundation.com/newsroom/afp-foundation-wisconsin-and-the-john-k-maciver-institute-air-did-it-right-commercialhttp://americansforprosperityfoundation.com/newsroom/afp-foundation-wisconsin-and-the-john-k-maciver-institute-air-did-it-right-commercialhttp://americansforprosperityfoundation.com/newsroom/afp-foundation-wisconsin-and-the-john-k-maciver-institute-air-did-it-right-commercialhttp://americansforprosperityfoundation.com/newsroom/afp-foundation-wisconsin-and-the-john-k-maciver-institute-air-did-it-right-commercialhttps://www.facebook.com/events/114184561992796/https://www.facebook.com/events/114184561992796/http://www.jsonline.com/news/statepolitics/scott-walker-set-to-sign-tax-cut-legislation-b99231851z1-251936261.htmlhttp://www.jsonline.com/news/statepolitics/scott-walker-set-to-sign-tax-cut-legislation-b99231851z1-251936261.htmlhttp://www.jsonline.com/news/statepolitics/scott-walker-set-to-sign-tax-cut-legislation-b99231851z1-251936261.htmlhttp://www.jsonline.com/news/statepolitics/some-factory-farm-owners-would-get-extra-tax-break-under-walker-plan-b99215578z1-248046631.htmlhttp://www.jsonline.com/news/statepolitics/some-factory-farm-owners-would-get-extra-tax-break-under-walker-plan-b99215578z1-248046631.htmlhttp://www.jsonline.com/news/statepolitics/some-factory-farm-owners-would-get-extra-tax-break-under-walker-plan-b99215578z1-248046631.htmlhttps://www.wmc.org/issues/issues-policy/phase-in-of-the-manufacturing-agriculture-credit/https://www.wmc.org/issues/issues-policy/phase-in-of-the-manufacturing-agriculture-credit/https://www.wmc.org/issues/issues-policy/phase-in-of-the-manufacturing-agriculture-credit/http://www.ncleg.net/EnactedLegislation/Statutes/PDF/BySection/Chapter_105/GS_105-134.pdfhttp://www.ncleg.net/EnactedLegislation/Statutes/PDF/BySection/Chapter_105/GS_105-134.pdfhttp://www.ncleg.net/EnactedLegislation/Statutes/PDF/BySection/Chapter_105/GS_105-134.pdfhttp://www.ncga.state.nc.us/EnactedLegislation/Statutes/HTML/BySection/Chapter_105/GS_105-134.5.htmlhttp://www.ncga.state.nc.us/EnactedLegislation/Statutes/HTML/BySection/Chapter_105/GS_105-134.5.htmlhttp://www.ncga.state.nc.us/EnactedLegislation/Statutes/HTML/BySection/Chapter_105/GS_105-134.5.htmlhttp://www.revenue.wi.gov/pubs/pb119.pdfhttp://www.revenue.wi.gov/pubs/pb119.pdfhttp://www.jsonline.com/news/statepolitics/123826279.htmlhttp://www.jsonline.com/news/statepolitics/123826279.html


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83 Parti, GOP, Koch brothers find theres nothing finerthan Carolina.

84 John Frank, House, Senate differ on how to pay for NCtax cuts,News & Observer, May 16, 2013, available athttp://www.newsobserver.com/2013/05/16/2897852/house-senate-differ-on-how-to.html.

85 Parti, GOP, Koch brothers find theres nothing finerthan Carolina; Americans for Prosperity-North Carolina,AFP Praises Tax Relief and Reform Compromise, UrgesLawmakers to Support, Press release, July 15, 2013,

available at http://americansforprosperity.org/north-carolina/newsroom/afp-praises-tax-relief-and-reform-compromise-urges-lawmakers-to-support/.

86 Americans for Prosperity-North Carolina, CoastalCarolinas Taxpayers Association Tax Day Tea Party Rally,available at http://

kochonomics in wisconsin and north carolina

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