Combined Reporting Prevents Corporate Tax-Dodging: Some Seek to Re-Open “Las Vegas Loophole”
In 2009, Wisconsin amended its tax policy to require combined reporting of corporate income and expenses, joining 22 other states that already had this policy. Some policymakers are advocating for a repeal of combined reporting.
This change reduced the opportunity for corporations to shift income to subsidiaries in other states in an attempt to avoid corporate income tax. Policymakers from a variety of ideological backgrounds have advocated for combined reporting, with then-Governor Tommy Thompson first proposing the change to the Legislature in 1999.
Re-opening this corporate tax loophole would add roughly $100 million a year to the state’s revenue shortfall. Read full WCCF publication.