In a business blog I wrote in February for the
Small Business Times, I pointed out Wisconsin’s abysmal business climate is due primarily to our high taxes. Wisconsin’s business climate ranks number 38 in the United States.
In my blog I quoted a report by the Tax Foundation that ranked Wisconsin in the bottom third of the country:
The Tax Foundation reports, "Taxes matter to businesses. In a highly competitive global market, states need to make their tax systems friendly to business in order to facilitate the expansion and growth of business. A simple tax system that is fair to all businesses is the best way for states to have a competitive business tax climate."
Taxes affect the number of jobs retained and created. Taxes play a role in the location and construction of plants. The most important effect taxes have on business is a reduction in profits. When taxes bite a bigger chunk out of profits, the costs are passed on to workers and consumers. Workers bear the brunt of higher taxes with lower wages and fewer jobs. Businesses frown on setting up shop in a state with taxes that produce smaller profit margins.
Evidence of how critical the tax issue is to businesses comes from the annual survey of CEO’s conducted by The Wisconsin Manufacturers and Commerce (WMC).
Fifty-eight percent of 24 chief executive officers who serve on the Wisconsin Manufacturers & Commerce board and answered the unscientific survey contend the state is either somewhat or very anti-business. .
The 58 percent total is the highest negative response to that question since the WMC first started asking it in 2001. Last year only 32 percent said the state was somewhat anti-business, and none described it as very anti-business.
Over half of the respondents said the top issue facing the state is taxes, while the two most popular answers for how government could help businesses was to regulate less (36 percent) and cut taxes (31 percent).
Here is the
WMC press release and the
WMC survey results.
