In Our "Bad-For-Business" State, Three Major US Companies Paid No Income Tax in Wisconsin
Wisconsin Manufacturers & Commerce continues to say that Wisconsin has a negative tax climate, but a new report shows that Microsoft, Sears and Merck, with total US sales of $18 billion in 2005, were among thousands of businesses paying no corporate income tax in Wisconsin at all.
Remember that when you send in your 2007 Wisconsin state income tax payment.
Many businesses say they pay plenty of other taxes - - property and sales, for example (and so do we)- - but the WMC has a better idea:
Eliminate the corporate income tax altogether.
Related information on this blog, here.
4 comments:
Microsoft and Merck have ZERO MANUFACTURING HERE. It is not that hard to figure out. Sales tax is paid by both co's, but income tax is paid WHERE YOU HAVE INCOME. If they do not make things here there is no corporate income tax to pay.
If Wisconsin had lower taxes, there might be more companies willing to conduct taxable operations here.
Current discussion about increasing corporate taxes will just drive more taxable corporate activity out of Wisconsin.
It sounds counterintuitive, but the way to generate more corporate income tax is to lower the rates so more corporations conduct their taxable activities here!
I have heard these arguments all my life, and the trend in Wisconsin has been to eliminate corporate taxes, and to cut the remaining rates - - and business is never satisfied.
Meanwhile, the tax burden is more and more shifted to individuals.
Where does it end?
Explain Merck and MSN? Why should they have tax liability when they have no income here? I realize people like you think that co's have no right to operate, that all income they keep is something stolen from the government, but why would they have income tax liability here when they have no income here? Answer this.
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