sw: So how much would each of those companies have to pay to make-up the state's budget shortfall, and how does that compare amount compare to thier overall income?
I don't know, but it's bound to come much closer to making it up than gouging the middle class. The shortfall has been cited as being at $6.6 billion. According to the article I linked you to:
"...there are numerous breaks from the corporate income tax. These include scores of individual business-assistance programs that give tax credits for such things as research ($18 million annually) and investment in so-called development zones (about $14 million)."
In addition to breaks on the corporate income tax, Wisconsin businesses enjoy the following:
"...all manufacturing machinery and equipment is exempt from property taxes. The Wisconsin Department of Revenue estimates that about $12 billion worth of property is tax-exempt under this law. If taxed at the state's average tax rate, this would generate about a quarter-billion dollars in new annual revenue.
Business computers are also exempt from property tax, under a definition of 'computer' broad enough to include automated bank tellers and computerized cash registers. In this case, the state annually reimburses local governments approximately $80 million in lost revenue.
Then there are the business services untouched by the sales tax. A 5% sales tax on advertising would generate more than $100 million a year, the Department of Revenue estimates. A sales tax on computer consulting would yield more than $130 million. A sales tax on accounting would produce nearly $60 million. And so on."
Given these tax breaks, it's not surprising that Wisconsin is suffering from a budget shortfall.
Re: Power corrupts...
I don't know, but it's bound to come much closer to making it up than gouging the middle class. The shortfall has been cited as being at $6.6 billion. According to the article I linked you to:
"...there are numerous breaks from the corporate income tax. These include scores of individual business-assistance programs that give tax credits for such things as research ($18 million annually) and investment in so-called development zones (about $14 million)."
In addition to breaks on the corporate income tax, Wisconsin businesses enjoy the following:
"...all manufacturing machinery and equipment is exempt from property taxes. The Wisconsin Department of Revenue estimates that about $12 billion worth of property is tax-exempt under this law. If taxed at the state's average tax rate, this would generate about a quarter-billion dollars in new annual revenue.
Business computers are also exempt from property tax, under a definition of 'computer' broad enough to include automated bank tellers and computerized cash registers. In this case, the state annually reimburses local governments approximately $80 million in lost revenue.
Then there are the business services untouched by the sales tax. A 5% sales tax on advertising would generate more than $100 million a year, the Department of Revenue estimates. A sales tax on computer consulting would yield more than $130 million. A sales tax on accounting would produce nearly $60 million. And so on."
Given these tax breaks, it's not surprising that Wisconsin is suffering from a budget shortfall.