In a statement released last week, Wisconsin Manufacturers & Commerce (WMC), the combined state chamber, manufacturers’ association, and safety council, denounced plans by the Wisconsin Department of Revenue (DOR) to charge small businesses across the state with an unexpected $450 million tax burden.
The tax increase stems from the Paycheck Protection Program (PPP) that allowed employers to pay workers while their businesses were shut down to abide by COVID-19 precautions. The statement says Congress intended for the funds to be tax-free, but the federal Internal Revenue Service (IRS) contradicted this by claiming revenue from the funds would not be deductible. The DOR announced it would follow the IRS decision.
