Madison—The Tax Foundation in collaboration with KPMG LLP recently released a new report, Location Matters: A Comparative Analysis of State Tax Costs on Business. The new study rated Wisconsin as one of the top five states for new businesses. The study was based on tax laws that were in effect as of April 1, 2011. When additional pro-job policies are factored into the study in the future, it’s anticipated that Wisconsin will improve even further in the rankings.
"Looking ahead, Wisconsin will become even more competitive for job growth,” said Governor Walker. “Our focus on private-sector job growth over the last year has not gone unnoticed. We enacted some of the most aggressive pro-jobs legislation in the entire country last year and employers are taking note. I will continue to court job creators to Wisconsin by spreading the word about studies like this that show Wisconsin has a new attitude and is ready to continue its economic turnaround."
Some of the changes that gave Wisconsin its favorable rating were adopted as part of the January 2011 Jobs Special Session.
Overall, Wisconsin ranked 4th in the country for the most favorable tax treatment of new firms.
Wisconsin easily outranks its neighboring states. In contrast to Wisconsin's 4th place ranking, Indiana ranked 15th, Illinois ranked 24th, Michigan ranked 25th, Minnesota ranked 35th, and Iowa ranked 41st. Wisconsin's tax burden on new firms was only 59.8% of the national average.
A copy of the full report can be found here.