Combined Reporting Prevents Corporate Tax-Dodging: Some Seek to Re-Open “Las Vegas Loophole”


January 14, 2011

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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.