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Tax Foundation admits mistake in Wisconsin business climate ranking

MADISON, WI (WTAQ) - The Tax Foundation has admitted that it gave Wisconsin too low of a rating for its business tax climate. 

The group that brought you Tax Freedom Day reported Wednesday morning that the Badger State ranked 43rd for its business tax friendliness -- down one place from a year ago. 

State Assembly Republican Dale Kooyenga of Brookfield said there was no way Wisconsin's tax climate got worse, considering all the changes made in the new state budget which took effect in July. Other Republicans and reporters raised questions as well. 

By the end of Thursday, the Tax Foundation issued a statement that it would make clarifications about this year's Wisconsin ranking. Foundation vice president Joseph Henchman confirmed that the state retroactively cut individual income tax rates by one-tenth of a percent, while reducing the numbers of tax brackets from 5 to 4. 

He said the budget also included other reforms that were not taken into account in the Tax Foundation's ranking process. Henchman said they would be reflected in future rankings and, "backcasted" if necessary.