Wisconsin's Corporate Tax Secrets Exposed

Strategic Insights -

Researchers from the Institute for Wisconsin's Future (IWF) took advantage of a little-known Wisconsin state law to uncover the tax secrets of dozens of corporations operating in the state. Filling out a simple form, they discovered that more than 60% of corporations with over $100 million in revenue paid no state income tax, including well-known companies like Kraft Foods and McDonald's. The IWF's findings have sparked controversy, with some accusing them of bias and others praising their transparency.

Key Takeaways:

  • The Institute for Wisconsin's Future (IWF) used a Wisconsin state law to uncover tax information of dozens of corporations operating in the state.
  • More than 60% of corporations with over $100 million in revenue paid no state income tax.
  • Companies that paid no state income tax include Kraft Foods, McDonald's, Microsoft, PepsiCo, Johnson Controls, Manpower, Kohl's, Harley-Davidson, and Rockwell Automation.
  • The tax revenue breakdown in Wisconsin is as follows: 3% from corporations, 36% from property taxes, 29% from sales taxes, and 26% from individual income taxes.
  • Wisconsin's state law requires that tax information be kept confidential, with two exceptions allowing for disclosure through publication by a newspaper or by a public speaker.
  • The state's largest business group, Wisconsin Manufacturers and Commerce, attempted to discredit the report by labeling the IWF as "a very left-leaning institute."
  • An affiliate of the group, Forward Wisconsin, boasts about Wisconsin's business-friendly tax policies and cites tax rates lower than those allegedly found by the IWF.

Statistics:

  • 60.1% of corporations with over $100 million in revenue paid no state income tax (IWF).
  • 3% of Wisconsin's total tax revenue comes from corporations (Wisconsin Department of Revenue).
  • 36% of Wisconsin's tax revenue comes from property taxes (Wisconsin Department of Revenue).
  • 29% of Wisconsin's tax revenue comes from sales taxes (Wisconsin Department of Revenue).
  • 26% of Wisconsin's tax revenue comes from individual income taxes (Wisconsin Department of Revenue).
  • More than $100 million in revenue is the cutoff for corporations to be included in the IWF's study.

Sources:

  • Researchers from the Institute for Wisconsin's Future (IWF).
  • Wisconsin Department of Revenue.
  • Wisconsin Manufacturers and Commerce.
  • Forward Wisconsin.
  • Cătălin Săndulescu.