The Oshkosh Northwestern has a great editorial today about the "corporate tax burden" and those who cry about it:
Politicians relish labeling Wisconsin a "tax hell."Hat tip to Jef Hall on this one.
You've heard that plenty of times in the last several months, right?
They also love to cite Harley-Davidson as a model Wisconsin company – homegrown, innovative, internationally known.
Where do the sound bytes intersect?
According to a Milwaukee-based research group, Harley didn't pay corporate income tax in 2003.
Harley is disputing the facts, as laid out by the "Institute for Wisconsin's Future." There are mounting questions about the Institute's methodology.
It reported that two out of every three Wisconsin companies (there are nearly 55,000 such corporate income tax filers in Wisconsin) found a legal means of dodging income tax payments in 2003. Its director heralded the findings in high-profile news conferences earlier this week.
Harley, Kohl's, Johnson Controls and even national players like Microsoft didn't shell out income tax in the Badger State, according to the Institute. Some of the companies argue the analysis flat-out ignored subsidiaries which paid millions in corporate income taxes.
Whatever the case, there are still some basic numbers that don't sit well and cast the whole "Wisconsin is a tax hell" mantra in a new light.
"Tax hell" for who, and, "Why?"
The Associated Press, in reporting the Institute's analysis this week, noted the corporate income tax generated just 3 percent of state and local revenue in Wisconsin since 2004. Meanwhile, property taxes represented 36 percent of revenue, sales taxes: 29 percent, individual income taxes: 26 percent and others, 6 percent, according to AP.
Here's where the imbalance gets insidious.
Wisconsin Manfacturers and Commerce (which paid for plenty of those anti-property-tax political commercials bombarding your TVs before the Nov. 7 election) has been a leading voice in the "tax hell" chant. The organization has also called for the elimination of corporate income tax burden in Wisconsin to recharge the business climate.
What corporate income tax burden?
It's no surprise the WMC's leader was quick to downplay the Institute for Wisconsin's Future income-tax analysis as slanted, emanating from a "left-leaning" organization created by public unions and Democrat backers.
Frankly, average property taxpayers have far better standing to question the WMC's slants right now.
Yes: Wisconsin's property tax is unfair. Yes: Too much of our tax burden is borne by average Wisconsin homeowners.
But if the WMC was honest about or aware of Wisconsin's true tax problems, it would acknowledge many of Wisconsin's most esteemed manufacturing and commerce leaders don't seem to be paying a proportionate share.
If only average property taxpayers could afford to buy a TV ad explaining that one to the WMC.
FINAL THOUGHT: Wisconsin needs to address its corporate income tax vs. property tax imbalances. Average homeowners are shouldering more than their fair share in Wisconsin.
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