Contact: Brian Taffora, 608-252-9245
MADISON – A new report by Ernst & Young and the Council on State Taxation ranks Wisconsin fourth in the nation in terms of lowest effective tax rate (ETR) on new capital investment at 4.5 percent.
Only Maine, Oregon, and Ohio had a lower ETR, which is a key indicator of competitiveness for new jobs and investment.
“This study shows that Wisconsin is on the right track to bring in new jobs and investment and help our economy recover more quickly,” said Phil Prange, President and CEO of the Wisconsin Business Council. “Wisconsin can compete with any state in the country for new investment dollars, but it is vital that the State Legislature continue to pursue policies that will help us further stake our claim for new business development.”
The study analyzed state and local tax provisions to determine the liabilities that new capital investment would incur in each of the 50 states, and focused on investments that could be made regardless of geography, including new factories, research and development facilities, office and call center facilities, and headquarters.
Business tax burdens that were examined for the report include income and franchise taxes on profits, real and personal property taxes, and sales taxes on business input purchases.
Wisconsin also ranked fourth in competitiveness when the ETR was weighted by the number of jobs created, rather than the amount of capital invested, at 5.7 percent.
To view the complete report, please visit http://www.cost.org.
The Wisconsin Business Council is an organization that seeks to support Wisconsin’s economic climate and quality of life through collaboration, improved public policy, and private sector initiatives. For more information, please visit http://www.wibusiness.org.