A recent analysis from the Wisconsin Policy Forum, a nonpartisan, independent policy research organization, has revealed that Wisconsinites are currently paying the lowest amount of taxes on record. The state’s tax ranking has dropped to 35th in the country, the lowest it has been since at least the 1990s. In 2022, state and local taxes fell to a record low of 9.9% of personal income in Wisconsin, down from 10.3% the previous year.
The report attributes the decrease in tax burden to rising incomes, state limits on local property taxes, and a large state income tax cut. However, despite the drop in taxes, there has also been a decrease in spending in key areas such as K-12 education.
Wisconsin Policy Forum president Jason Stein explained that the tax burden is calculated as a percentage of personal income and is currently at a historic low for Wisconsinites. The state’s tight limits on property taxes, income tax cuts, and rising incomes have contributed to this decrease.
One of the reasons cited for the significant decrease in taxes in Wisconsin compared to other states is the control of the legislature by one party since 2011, which has made it a priority to curb tax growth. While there are plans to further cut income taxes in the next state budget, disagreements on how to do so have arisen with Gov. Tony Evers.
Despite the overall decrease in taxes, Stein emphasized that not everyone’s taxes have necessarily gone down. Local property tax referenda that were passed in some areas will lead to increases in tax bills in December. For more information, the full report from the Wisconsin Policy Forum can be accessed on their website.
Source
Photo credit spectrumnews1.com
