Sunday, May 22, 2011

Two-thirds of Wisconsin corporations don’t pay state income taxes

Being open for business means that -- soon -- none of our corporations will have to pay any taxes?

PolitiFact Wisconsin | One Wisconsin Now says two-thirds of Wisconsin corporations don’t pay state income taxes

Wisconsin Gov. Scott Walker’s push for major cuts in education funding and state employee compensation rests on his claim of a fiscal emergency he traces mainly to government overspending.

But Democrats and liberal groups say skewed tax policies favoring the wealthy and business at the expense of the middle class are big factors in the state’s budget shortfalls.

Efforts to make that case have often centered on this phrase: "Two-thirds of Wisconsin corporations don't pay state income taxes."

The liberal advocacy group One Wisconsin Now -- through its affiliated research arm, Institute for One Wisconsin -- has been part of the effort to get that phrase before the public.

The institute’s April report, "We’re Not Broke," called that two-thirds number "shocking," arguing it was evidence that businesses here don’t pay their fair share because of tax loopholes, credits and Wisconsin’s below-average corporate tax rates.

With Walker advocating repealing the corporate income tax altogether, we thought it was time to get to the bottom of this claim.

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