Wisconsin Tax Burden at Record Low, Report Finds
MADISON, WI—A recent study by the Wisconsin Policy Forum reveals that the tax burden for residents has reached its lowest level in recent history, declining to 9.9 percent of income in 2022, compared to the national average of 11.1 percent. This figure highlights a significant drop from 25 years ago, when Wisconsin had the third-highest tax burden in the United States, now ranking 35th.
The report attributes this decline to rising incomes, limitations on property tax increases, and substantial income tax cuts. Mark Sommerhauser, the Forum’s communications director, noted that this trend has been occurring over two decades and reflects a broader movement towards lower taxes.
Republican legislators expressed satisfaction with these findings, emphasizing their successful efforts in reducing taxes. Senate Majority Leader Devin LeMahieu stated that the drop in tax burden is the largest in the nation, affirming Wisconsin’s solid financial standing. He pledged ongoing tax reduction efforts, citing a $1 billion income tax cut passed in 2021 as a major contributor to this decrease.
However, the political landscape reveals contention over education funding. The report notes that K-12 spending as a percentage of personal income has fallen from 5.2 percent in 2000 to 3.8 percent in 2022, marking a decline in Wisconsin’s education spending ranking from eighth to 31st nationwide. Lawmakers are divided on how to allocate the state’s budget surplus, with Democrats advocating for increased education funding while Republicans prioritize further tax cuts.
As both parties prepare for the 2025-27 state budget discussions, the challenge of balancing tax reductions with adequate educational funding remains a critical issue.
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