MacIver News Service | September 16, 2013[Madison, Wisc…] Wisconsin ranked poorly in 2013 for tax rates on small businesses that file as sole proprietorships or S-Corporations. According to a recent study by the Tax Foundation, the Badger State ranked tenth and ninth highest in the nation respectively for marginal tax rates on these small businesses.
The Tax Foundation says, “in his study, Kyle Pomerleau explains that more than 30 million pass-through businesses file their taxes at the individual rate, and why a large percentage of those businesses have a marginal tax rate exceeding 40 percent.”
Pomerleau, an economist at the Tax Foundation, points out in the study that Wisconsin small businesses that file as individuals could see a marginal tax rate as high as 48.4 percent.
The recent income tax cut included in the 2013-2015 state budget will lower the marginal tax rate a small amount at every tax bracket for businesses that file this way. However, Wisconsin would still have a higher rate than state’s with little to no individual state income tax, like Florida and Texas.
See more information from the Tax Foundation here.