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Wisconsin businesses say they 'dodged a bullet,' rejecting high taxes as democratic socialist lost primary

Wisconsin businesses "dodged a bullet" after democratic socialist candidate Francesca Hong lost the Democratic primary to a more moderate candidate, according to the CEO and president of Wisconsin Manufacturers & Commerce (WMC).

"My flip answer would be to open up a history book and learn how socialism has failed everywhere it's been tried, and it would fail here in Wisconsin as well. So from that perspective, we've dodged a bullet in the state of Wisconsin," Kurt Bauer, WMC president and CEO, told Fox News Digital.

Bauer’s comments came after state Rep. Hong fell short in her bid to capture the Democratic gubernatorial nomination in Wisconsin last month.

DEMOCRAT ESTABLISHMENT STRIKES BACK AS SOCIALIST CANDIDATE DOWNED IN BATTLEGROUND PRIMARY

The primary was closely watched as a high-stakes test of whether battleground Democrats favored the party's progressive wing or its establishment ahead of November's general election.

Hong, a state lawmaker from Madison and a member of the Democratic Socialists of America (DSA), was defeated by Milwaukee County Executive David Crowley, who topped her by a razor-thin margin after polling had shown her with a significant lead.

WISCONSIN DEMOCRATIC VOTERS CHALK SOCIALIST FRANCESCA HONG'S STUNNING LOSS UP TO ELECTABILITY CONCERNS

Crowley was backed by retiring Democratic Gov. Tony Evers, with both warning that nominating Hong could jeopardize Democratic control of the governor's mansion in November.

Hong's positions and efforts to backtrack from past statements — including previous calls to abolish the U.S. Senate and criticizing Thanksgiving — became issues during the campaign in Wisconsin, a perennial swing state.

"The person who won the primary said himself that he basically has the same policy that she has. So he might be a little bit better on some of the issues, but he still represents, I think, a concern for the business community on taxes, on healthcare, and some of the other major issues that they care about," Bauer told Fox News Digital.

WMC conducts a biannual survey of 200 business leaders to gauge how small businesses are impacted by state policies.

According to the Winter 2026 survey, business owners in Wisconsin expressed concern over the state's trajectory. WMC reported that 71% of businesses saw an increase in the property tax bill for their owned or leased commercial property over the past year, while just 1% saw a decrease.

According to WMC’s report, nearly half of survey respondents said that President Donald Trump's tariffs had a negative impact on their business, while 12% reported a positive impact.

"Overall, Wisconsin employers seem to be lukewarm," Bauer concluded. "Although we see hints of optimism like increased hiring and a relatively good outlook for the U.S. economy, businesses are still frustrated with high healthcare costs and finding capable employees."

In response to Bauer’s comments, Crowley’s campaign sent Fox News Digital the following statement:

MEET THE DEMOCRAT WHO NARROWLY DEFEATED SOCIALIST RIVAL IN KEY SWING-STATE BATTLE OVER THE PARTY’S FUTURE

"Under David Crowley’s leadership, major corporations have brought their business and thousands of jobs to Milwaukee County. As governor, he’ll work with members of both parties to balance the budget and create good-paying, family-supporting jobs—just as he’s done as county executive," a campaign spokesperson said.

"Meanwhile, Congressman Tiffany has supported every single one of Donald Trump’s tariffs that are crushing Wisconsin’s manufacturers and farmers, and went years without paying his own taxes," the spokesperson added.

PRIMARY TAKEAWAYS: DEMS’ LEFT-CENTER BATTLE INTENSIFIES AS SCHUMER TAKES ANOTHER HIT; SPLIT DECISION FOR TRUMP

Crowley has emphasized his track record supporting businesses. As Milwaukee County executive, Crowley secured millions in grants for local enterprises and helped negotiate bipartisan legislation to keep the Milwaukee Brewers in the city through state funding agreements.

His office credited the region's business-friendly climate with helping Milwaukee County's tourism industry generate $4.4 billion in total economic impact, contributing to Wisconsin’s fourth consecutive record-breaking year for tourism. On the infrastructure front, Crowley implemented the Building Bridges program, which provides small businesses technical support and financial assistance through $10,000 grants.

STATE OF PLAY: HIGHLY WATCHED HONG RACE REMAINS TOO CLOSE TO CALL AS PROGRESSIVES NOTCH KEY PRIMARY WINS

Crowley’s office announced that it secured federal funding, including an $8 million grant for a redeveloped terminal at Milwaukee Mitchell International Airport from the U.S. Department of Transportation. The move is expected to create hundreds of construction jobs.

He has received endorsements from several labor unions and trade associations, including the Wisconsin AFL-CIO, Plumbers Local 75, and the IBEW Wisconsin State Conference, which represents 15,000 electrical workers.

Bauer nevertheless praised Tiffany's record on business issues.

"We don't do actual endorsements, but we do get involved in the races. We have a 501(c)(4) for issue advocacy, so we will support pro-business candidates in the election. I'm not sure we will get involved directly in the governor's race, but we will certainly educate our members on what positions both the Democrat and Republican take on the issues that they care about," Bauer said.

He added, "We have worked with Congressman Tom Tiffany from his days in the state legislature. We know him very well. We know what he stands for. He's been very pro-business. He's an ally of the business community. He wants investment into the state, and he understands that in order to do so, you have to have the right business climate."

Fox News Digital spoke with Wisconsin business owners about their thoughts on the upcoming gubernatorial election and state economic policy.

Dane Leceski, owner of "Gents, Chaps, & Blokes" and a former political consultant, expressed a similar sentiment. "I do believe that Wisconsin really dodged a bullet when it came to David Crowley winning over Francesca Hong," he said.

Crowley will face off in November against Republican nominee Rep. Tom Tiffany, a House Freedom Caucus member backed by Donald Trump. The race is considered one of the GOP's top flip opportunities nationwide.

‘MODERATE’ DEM GUBERNATORIAL CANDIDATE EMBRACED DEI BUDGET TOOL, GREEN NEW DEAL-STYLE POLICIES

"David Crowley worked with Republicans and Democrats to balance budgets, deliver surpluses, expand affordable housing, and pass property tax cuts in Milwaukee County," Crowley’s campaign told Fox News Digital.

"Congressman Tom Tiffany didn’t pay his personal income taxes for years, and his entire economic agenda is giving tax breaks to big tech billionaires by slashing healthcare funding. We can’t trust Tom Tiffany to balance his own checkbook, let alone a multibillion-dollar budget," the spokesperson added.

Tiffany shot back at Crowley in a comment to Fox News Digital.

"My wife, Chris, and I owned and operated a seasonal dinner boat and excursion business in northern Wisconsin for nearly 20 years. Before we ever took home a dollar, we had employees counting on us, fuel to buy, and a boat and equipment to maintain and improve. We paid all taxes owed in full and on time, and running that business is one of the reasons I got involved in public service," he said in a statement. "I experienced firsthand how regulations and government bureaucracy can make an already difficult job even harder. 

"David Crowley has never run a small business. His record in Milwaukee County is higher property and sales taxes on families and small businesses. Taking that approach statewide would only make Wisconsin less competitive. We already ranked 40th in job creation from 2018 to 2025, and some rankings put us in the bottom 10 states to start a new business. As governor, I will lower taxes, cut unnecessary red tape, and make Wisconsin a place where employers have every reason to invest and create jobs. Wisconsin has the people and the work ethic to lead the country. We just need a governor who will get government out of the way and let Wisconsin reach its full potential."

Fox News Digital also spoke with the Specialty Equipment Market Association (SEMA) after its political arm endorsed Tiffany for governor. The group stated its endorsements come "with no party affiliation" and stem from candidates' "voting records, public statements, and responses to a candidate questionnaire."

"We like to think we’re the political voice for the business owners, the builders, the racers, the manufacturers, and enthusiasts that are empowering the automotive aftermarket industry, which has a $337 billion economic impact across the U.S.," Lauren Wilbor, a spokesperson for SEMA’s SuperPAC, Driving Force Action, told Fox News Digital.

"We wanted to make sure that Tom Tiffany was that clear endorsement ahead of the primary because we felt like he was the clear choice to support Wisconsin’s business economy and had real concern if Francesca Hong was elected," she added.

Gregg McKarns, owner of Madison International Speedway, said he supports policies that protect local venues.

"While we have it good here in Wisconsin, we’d like to keep it that way. Just hearing about property tax increases — it's concerning because we’re on 50 acres. We have a lot of land here, and we need a lot of land to run our business," McKarns told Fox News Digital.

Hong's campaign and Evers' office did not respond to requests for comment.

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