The fight between Democratic and Republican mining bills has shifted. Now, it’s about how to tax a mining company. Mike Simonson reports from Superior.

That argument took a strange twist last week when Americans for Tax Reform leader Grover Norquist entered the debate.

The proposed Democratic bill says mining companies should be taxed on the amount of minerals taken out of the ground, called a “gross tonnage tax”. The Republican bill would tax final profits by a mining company. State Senator Dale Schultz says that’s giving away natural resources because companies can make the annual bottom line appear as if they hadn’t made a profit. “All kinds of accountants and businesspeople have raised their eyebrows over this and said companies have found ways to avoid paying taxes. It might be ten years if ever before this is profitable. “

But Governor Scott Walker says no way to a gross tonnage tax. “I’m not going to issue veto threats on legislation or amendments that haven’t yet been offered but I can tell you I can’t support that and and whether it’s here or to the budget or anywhere else, I would do what is necessary to ensure that we don’t have a new tax as part of the mining legislation.”

Enter Grover Norquist of Americans for Tax Reform. He sent emails to all Wisconsin Republican lawmakers last week telling them not to vote for the Democratic tax, saying it amounts to a tax increase and violates their “no new taxes” pledge.

Schultz got that email. “I was absolutely blown away. For a guy who has not exactly covered himself in glory with the fiscal cliff deal in Washington, it looks like he’s looking for more fertile grounds in Wisconsin.”

Schultz says this shows that the Republican iron ore mining bill in Wisconsin now has national interest with its net profits tax. If passed in Wisconsin without the tonnage tax, it could become a national model. The gross tonnage tax is the same kind of tax used in Minnesota and Michigan on iron ore mining companies.

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