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WPF: Wisconsin Taxes as Share of Income Drop for Ninth Straight Year

By John Forester | January 12, 2021

From WisPolitics.com …

For the ninth straight year, state and local taxes paid by Wisconsin individuals and businesses dipped as a share of income, according to a new report from the Wisconsin Policy Forum.

The report found both state and local taxes grew 2.3 percent to $31.7 billion in fiscal year 2019-20. But income growth, including wages, employer benefits and business income, outpaced the increase in tax collections, helping drive down the tax burden.

A slowdown in state tax collections also impacted the calculation. They grew 1.5 percent in 2020 to $20.7 billion, the smallest increase in a decade.

For 2019-20, state and local taxes accounted for 10.2 percent of personal income, down from 10.3 percent the year before. The Wisconsin Policy Forum said it was the lowest burden since at least 1970, when it began tracking the numbers.

The Wisconsin Policy Forum doesn’t have a national comparison for its look at the state-local tax burden. The most recent national comparison is based on numbers from the Census Bureau and showed the state ranked 23rd highest in 2018 for the state-local tax burden. That was down from 17th highest the year before.

See the report here.

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