The Blueprint: 10 Democrats Make the Cut for August Primary to Challenge Walker
ALSO: 10 Democrats Make the Cut for August Primary to Challenge Walker • Longtime WBA Friend of Housing Rep. Young Announces Retirement • From DSPS: Commercial Building Code Insert Pages & Informational Documents • Additional Details From the Recent Nomination Paper Filing Deadline • Abrahamson Announces She Will Not Run Again in 2019 • From NAHB: Tax Reform and Net Operating Losses
10 Democrats Make the Cut for August Primary to Challenge Walker
On June 1st, anyone running for office in the August primary and November general election in Wisconsin was required to submit nomination papers to get on the ballot for the elections in late summer and early fall. At one point, there seemed to be a never-ending list of democrats interested in running in the primary for the right to challenge Governor Walker this fall, but, at the end of the day, the field now stands at 10 after the June 1 filing deadline.
The race for the democrat nomination for governor now includes 3 current or former state legislators, the head of a statewide union, a businessman, the current Wisconsin Superintendent, the head of a political watchdog group, the former head of the Democrat Party in Wisconsin, the current mayor of the City of Madison, and an attorney employed by J. Crew.
The large field of candidates is seen as a blessing because it shows a high level of intensity in wanting to defeat Walker in November, but it is also a curse because the candidates will be more focused on winning their primary before turning their sights to Walker.
Democrats held their state convention last weekend in Oshkosh, where the online political website Wispolitics.com held their annual straw poll to gauge the preferences of those who attended the convention. On Saturday it was announced that former State Representative Kelda Roys was the straw poll winner, taking 23.3% of the vote (184 votes) with firefighter union leader Mahlon Mitchell coming in second with 11.8% (93 votes), and Wisconsin Superintendent of Schools Tony Evers coming in third with 11.5% (91 votes).
The Roys campaign is capitalizing on the straw poll win to build momentum for her campaign and released a statement saying: “I’m running for governor because I have a vision for our Wisconsin as a place of opportunity and fairness,” said Roys. “Today’s poll proves that Wisconsin voters are excited to vote for a leader with a positive vision for our state, not just vote against things. We’re gaining momentum every day by sharing our values of opportunity and fairness, with a hopeful, optimistic vision for our future.”
The general election primary will be held on Tuesday, August 14, 2018.
Longtime WBA Friend of Housing Rep. Young Announces Retirement
State Representative Leon Young announced recently that he would not be seeking another term in the state assembly after serving in the lower house for nearly 26 years. In the press release announcing his retirement, Young stated that “I have been unyielding in the fight for affordable and adequate housing, employment for youth and adults, improved public safety through sponsored legislation on gun control, assault weapons bans, micro-stamping, stolen cars, driver's license, etc.”
During the debate on a rule to change the threshold for multifamily sprinkler in the 2007-2008 legislative session, Representative Young joined the GOP members of the Assembly Housing Committee in objecting to the increased regulatory requirement that was being pushed by the Doyle administration. After the democrats regained the majority in the state assembly in 2008, Young served as the Assembly Housing chair during the 2009-2010 session. For his efforts in support of polices to keep down the cost of housing for Wisconsin families Representative Young has been a longtime recipient of the WBA Friend of Hosing Award as voted on by the WBA Board of Directors.
Young announced that he would be returning to the Milwaukee Police Department where he served prior to being elected to the state assembly.
From DSPS: Commercial Building Code Insert Pages & Informational Documents
The Department of Safety and Professional Services (DSPS) - Division of Industry Services is providing additional information to you pertaining to SPS 361- 366, the Commercial Building Code Package.
New “Insert Pages” may be accessed under the “Publications” section of the Commercial Buildings page on our website.
The Division also prepared and updated FAQs. The information pertains to the code updates that became effective on May 1st, as well as other related topics. Please see the four (4) links below.
FAQ’s related to the Commercial Building Code sections listed below are here:
• SPS 362.0705(2) Substituted Table 362.0705-2
• SPS 363.0303(1)
• SPS 363.0502(3) and (4) and SPS 363.0503(3) and (4).
A FAQ discussing ventilation requirements related to SPS 364.001(2), SPS 364.0202(f) and SPS 364.0403 has been updated:
The FAQ regarding 2017 Act 198 is discussed here.
Here is a FAQ pertaining to 2017 Act 330, the SPS Code SPS 361.60(5)(c)3 and Carbon Monoxide Alarms.
Additional Details from Recent Nomination Paper Filing Deadline
Groups like the WBA who will be active in the November 2018 elections and those who will be on the ballot were busy clicking “refresh” on the state elections commissions website on Friday before the filing deadline to see what the final list of candidates would look like. Several candidates, especially in the state assembly, had their fingers crossed that for a free ride with no opponent in November.
Current holder of the 1st Assembly District seat, Joel Kitchens, does not have a democrat running against him but did pick up a challenger running as an independent. The 1st Assembly District has been viewed as a possible pick up opportunity for the democrats since the area will already be a focus of the democrats in the state senate with that seat now open a special election happening on Tuesday, June 12th.
A number of republicans in suburban Milwaukee and democrats in and around Madison running for reelection to the state assembly have no challenger, largely due to the fact that these are heavily partisan seats where the opposite sides sees no chance of winning. For a complete listing of candidates running for the state assembly, click here.
There are fewer partisan primaries in the state senate with both parties mostly settling on one candidate that will advance to the general election with no primary race. One exception is that two democrats will be facing off to advance to the general election against State Senator Roger Roth. Lee Snodgrass faces Dan Grady in the August primary in the 19th Senate District to face Roth in November.
Democrat Tim Carpenter has no competition for this State Senate seat while republicans Steve Nass and Chris Kapenga have no reelection competition on the republican side. Click here for the complete listing of candidate running for the state senate.
Abrahamson Announces She Will Not Run Again in 2019
Most of the campaign related conversations these days are rightfully focused on the primary and general elections in 2018. In early 2019, another big election is on the horizon which will have a significant effect on the future direction of the Wisconsin Supreme Court.
Last week, former Wisconsin Chief Justice and current member of the Wisconsin Supreme Court Shirley Abrahamson announced that she would not seek reelection to the seat on the court that she has held since 1976 when she was appointed to fill out a term on the court by then-Governor Pat Lucey.
In a letter released on May 30 Abrahamson stated, “For a variety of reasons, I have decided not to seek re-election. It is the right decision for me. More importantly, it is the right decision for the state. I will encourage qualified candidates to seek election and to do so in a way that honors the independent and non-partisan tradition of the judicial branch in Wisconsin—though that tradition has been tested too often.”
With a now-open seat for a 10-year term as a member of the Wisconsin Supreme Court, there will likely be a long list of attorneys and attorneys who will now consider a run in 2019.
From NAHB: Tax Reform & Net Operating Losses
Before the Tax Cuts and Jobs Act (TCJA) went into effect, a business’s net operating losses (NOLs) could generally be carried back two years and carried forward 20 years to offset taxable income.
Tax reform, however, repealed the two-year carryback allowance and other special carryback provisions for losses arising in tax years beginning after Dec. 31, 2017.
The TCJA also placed limits on the use of NOLs. Starting in tax year 2018, businesses may no longer use NOLs to offset all of their taxable income in subsequent years.
The NOL deduction is now limited to 80% of taxable income (which is determined without regard to the new 20% pass-thru deduction). In other words, business owners may no longer use NOLs to reduce tax liability to zero.
Any NOL carryforwards must be applied in the first subsequent tax year in which the business has positive taxable income and may now be carried forward indefinitely rather than limited to a 20-year period.
Here’s an example - Joe owns a business that posts a net loss of $100,000 in 2018. The business fares better in 2019, making a $100,000 profit before taxes. He does not have historical NOLs on the books to use in future years. Under prior law, Joe would have been able to deduct the 2018 loss in 2019, fully eliminating the business’s tax liability. But now, Joe may only deduct $80,000 (80% of $100,000). Rather than erasing taxes owed on the $100,000 profit in 2019, the NOL deduction reduces taxable income to $100,000 minus $80,000, or $20,000. The $20,000 NOL left over then essentially goes on the ledger as a “tax asset,” an asset that will increase after-tax income in the future. In 2020, Joe’s business makes $150,000. Because it is a profitable year, he is required to apply his unused NOLs to the largest extent possible. In Joe’s case, the $20,000 NOL carryforward reduces taxable income to $130,000.
Going Forward - While a business should theoretically be able to use the aggregate value of NOLs to offset tax liability in the future, some taxpayers and types of businesses may find that this is not the case.
Capital-intensive startups, for instance, could post losses for years before finally making a profit. If the annual losses are large and—even in good times—the margins are small, one can imagine a situation in which the benefits are never fully realized. New active loss limitation rules enacted in the TCJA also erode the benefit of NOLs to upper-income taxpayers.
As the rules applied here are done so in a simple example, you should discuss your personal situation with a tax professional. The new NOL deduction interacts with other areas of the tax code, which could make the picture messier and increase (or decrease) taxes owed.