Understanding the Threat

Understanding the Threat

We need your help to stop Wisconsin from robbing travel agents of their hard-earned income.

Summary of the Threat:

Double taxation is wrong and illegal: Wisconsin is taxing the same commission dollar twice:

• Income tax on the agent revenue after expenses
• Income tax on out-of-state service providers associated with the sale before expenses, INCLUDING THE PORTION PAID TO THE AGENT.

Out-of-state partners provide essential business and educational support for Wisconsin-based travel advisors.

Taxation without representation is wrong and illegal

Wisconsin has treated the decisions made by its taxing authorities as precedent. This effectively makes the taxing authorities lawmakers, judges, juries, and executioners.

Result:

Wisconsin gets to tax 180% to 195% or more of the revenue associated with the sale of travel while the vendors themselves pay nothing, AND your income may be reduced by 35% or more.

Why is This Potentially Problematic?

Federal Law:
Wisconsin is allegedly violating federal interstate commerce law.

Policy as Law:
Wisconsin considers the decisions of its taxing authorities as legal precedents.

Double Taxation:
Advisors will lose 35% or more of their income as their out-of-state partners cannot, by law, pay taxes for independent contractors.

Impact:
Disproportionate reduction in income for primarily women-owned Wisconsin businesses
Reduced ability to compete with out-of-state agencies
Increased costs and other burdens for Wisconsin consumers

Current Legal Status

The matter is in Wisconsin’s highest courts and could reach the U.S. Supreme Court. If this taxation approach prevails, it will likely affect other states and industries.

Action Required

Wisconsin travel advisors, vacationers, and concerned citizens are urged to:

• Contact your Wisconsin legislators (Representative, Senator, Governor) by email, postal mail, telephone, and social media.
• Explain how our industry works and how double taxation makes it virtually impossible to compete in our industry. Explain how this taxation policy affects you personally.
• Encourage them to amend the current codes and statutes to end this double taxation.