A majority of Wisconsin employers believe the state is headed in the wrong direction, citing taxes as a primary factor hindering business competitiveness, according to a new survey from Wisconsin Manufacturers & Commerce.
The Summer 2026 Wisconsin Employer Survey, conducted by the business advocacy group, polled 196 employers statewide. Fifty-six percent said Wisconsin is headed in the wrong direction, while 44 percent said it is headed in the right direction.
Regarding taxes, 51 percent of respondents said Wisconsin’s state and local taxes significantly or somewhat weaken their company’s competitiveness with businesses in other states. Only 6 percent said taxes strengthen competitiveness, while 43 percent saw no significant impact or were unsure.
Property taxes received notable criticism. Seventy-one percent reported an increase in property tax bills for owned or leased commercial property in the past 12 months; 58 percent described the increase as significant, and 17 percent as modest. Fewer than 1 percent saw a decrease.
Wisconsin ranks among the top 10 states for individual and property tax burdens and the top 12 for corporate tax burden, according to the survey.
Employers expressed strong support for major tax reform. Seventy-one percent favored eliminating Wisconsin’s personal income tax, with 46 percent strongly supporting the idea. Fourteen percent opposed elimination, 11 percent were neutral, and 4 percent were unsure. The survey noted that Wisconsin taxes 95 percent of its businesses through the individual income tax rate, describing it as a “small business tax” with one of the highest top rates in the country.
Workforce challenges were also significant. Sixty percent of businesses reported difficulty finding workers as the economy improves and hiring increases. The main obstacle was a lack of skilled applicants, cited by 59 percent, followed by a lack of job applicants at 20 percent.
More than half of employers said Wisconsin’s K-12 education system does not adequately prepare students for the workforce, which adds to labor availability and demographic challenges.
The survey results underscore ongoing concerns among Wisconsin’s business community about tax burdens and the state’s economic direction as it competes with other states.
