A majority of Wisconsin business executives believe the state is on the wrong track, pointing to rising property taxes and uncompetitive tax rates as primary obstacles to growth.
“It’s no wonder employers say Wisconsin is headed the wrong way: we’re already among the highest-taxed states in the nation, with top-10 individual and property tax burdens and a top-12 corporate tax burden,” said Wisconsin Manufacturers and Commerce (WMC) President and Chief Executive Officer Kurt R. Bauer. “Property taxes are a punishing fixed cost, owed whether a business is just starting out, expanding, or struggling. With Governor Evers’ 400-year autopilot increase, Wisconsin is on track to climb even higher.”
According to the Summer 2026 Wisconsin Employer Survey released Tuesday by WMC, 56 percent of respondents say the state’s business climate is headed in the wrong direction. The data reveals deepening frustration over fixed costs and the state’s overall tax structure, driving a renewed push for substantial tax reform among the state’s business community.
The semi-annual survey collected responses from 196 employers across various sectors, offering a snapshot of current economic sentiment among Wisconsin job creators.
Property Taxes Strain Local Operations
A key catalyst for the negative outlook appears to be commercial property tax bills. The report indicates that 71 percent of surveyed employers experienced an increase in property taxes for their owned or leased commercial spaces over the past year. In contrast, less than 1 percent reported a decrease.
Bauer also tied the increases to state leadership, pointing to a controversial partial veto used by Governor Tony Evers in the previous budget cycle.
The WMC executive noted that the 2023 veto, which extended an annual school district revenue limit increase until the year 2425, has placed local business expansion on an unpredictable financial trajectory.
Competitiveness and the Income Tax Debate
The survey notes that 51 percent of employers believe Wisconsin’s state and local tax environment weakens their ability to compete with businesses in other states. Only 6 percent responded that the tax climate improves their competitive edge.
To counteract these numbers, business leaders are showing broad support for aggressive policy changes. The survey found that 71 percent of respondents support the complete elimination of Wisconsin’s personal income tax, with 46 percent indicating they strongly support the measure. Only 14 percent of those surveyed opposed the idea.
WMC noted that individual income tax policy heavily impacts the business sector, as roughly 95 percent of Wisconsin businesses are structured as pass-through entities, meaning their business income is taxed under the individual tax code rather than the corporate code.
“Wisconsin taxes 95 percent of its businesses through the individual income tax rate, what many rightly call a ‘small business tax,’ hitting them with one of the highest top rates in the country,” Bauer said. “If Wisconsin seeks to attract investment, businesses, and talent, we must reform our tax climate to make it more competitive with neighboring states and those across the country.”
The full report and dataset can be accessed directly through the WMC Summer 2026 CEO Survey Report.
