Manufacturing Study Provides Interesting Insights Into Tax Perceptions In Wisconsin

What they don't tell you at www.ontheborderline.net:

I came across an interesting story concerning a newly released study on the state of manufacturing in Wisconsin. The story in Wednesday's Pioneer Press said the study recommened the state focus its efforts on promoting its top 13 manufacturing industries. Those industries include those that make paper, machinery, fabricated metal, electrical equipment, wood products, dairy products, fruit and vegetable products, transportation equipment, cleaning compounds and non-metallic products.

John Brandt of the Manufacturing Performance Institute said Wisconsin can maintain its competitive advantage by building on the strength of these driver industries, improving supply chains and helping companies quickly take advantage of new technology and innovations.

The study's authors caution that challenges still loom, and not just from overseas where production costs are lower. Wisconsin manufacturing firms will have trouble recruiting and retaining new young workers, and taxes are higher here than in neighboring states.
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This study had hi-lited these strengths and weaknesses in Wisconsin's business climate:

Strengths:
1. Wisconsin’s proximity to a vast consumer population.
2. Excellent transportation infrastructure.
3. At present, a superior, highly skilled work force.
4. A highly valued quality-of-life.

Weaknesses:
1. Manufacturing has a poor image professionally.
2. Taxes of all types are high.
3. Businesses are unable to contain manufacturing costs.
4. There is an emerging two-tiered work force, with older, reliable workers nearing retirement and their potential replacements difficult to attract and retain.

Notice that strenghts 2, 3 and 4 are related to what our taxes go to pay for: good roads, educated people and a great quality-of-life. Notice #2 in the weaknesses. It says that "taxes of all types are high."

This study was commissioned by
Wisconsin Manufacturing Extension Partnership (WMEP)
and done by Manufacturing Performance Institute (MPI). These are organizations promoting manufacturing and lobbying for it in this and other states...especially MPI.

I willing to bet that any study MPI does says the taxes are too high. That's their job to push for lower taxes wherever they can. WMEP has board members from companies like Trane, Harley-Davidson and John Deere. It also has board members representing unions and technical colleges.
Below are some tax myths about Wisconsin from a study done by The Center on Wisconsin Strategy that might shed the tax light a little differently on this subject:

Myth: Taxes are killing business in Wisconsin.

Fact: Wisconsin’s business taxes are far below average; moreover, business taxes are not the primary factor in business location decisions.

1. Business taxes in Wisconsin are strikingly low. Wisconsin ranks 49th in business taxes as a share of state and local taxes (50th if we include the District of Columbia), and 36th in business taxes relative to business profit.

2. State and local business taxes account for only 0.8 percent of the cost of doing business for most companies. Much greater costs include housing (10.9 percent) and health care (13.7 percent).

3. A number of studies show that taxes rank low on the list of factors considered in business location decisions. Much more important are a well-trained labor force and high-quality public services (including infrastructure).

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Don't get me wrong, we need to promote growth sector businesses, but the business sector has to pay its share of the bargain too. Average wages have been dropping in Wisconsin over the past decade. Could that be a reason why young workers are attracted to manufacturing jobs? The future is at stake here. We need good paying jobs in this state with adequate health care benefits. We need trained, educated people to perform those jobs and this obviously doesn't happen for free. Business needs to pay its fair share of what it takes to remain competitive in today's global economy.

If you have an additional informaiton or sites to link to, let me know and we'll get them on this web site. Shoot me an e-mail or post the info in the comments to this post.

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