Tax cuts remain a top priority for state lawmakers.
Taxation in Wisconsin is on a downward trend, but how does the state rank nationwide?
Over the past several years, Gov. Walker and Wisconsin state lawmakers have made tax cuts a priority, and this focus shows: While the Badger State’s taxation levels were once among the nation’s highest, they are now just below the national average, reported the Milwaukee Journal Sentinel.
This information comes from 2014 U.S. Census data, which showed that state and local taxes accounted for 10.5 percent of Wisconsinites’ income, while nationwide, state and local taxes took up 10.6 percent of American incomes. In 1973, Wisconsin residents were paying 14.7 percent of their income in state and local taxes.
Another ranking, the Tax Foundation’s 2018 State Business Tax Climate Index, shows Wisconsin’s tax competitiveness is on the lower side, however. The index is designed to show how well states structure their tax systems, as well as to provide a roadmap for improvement, the study authors note. Here’s how Wisconsin ranked on all categories:
- Overall rank: 38
- Corporate tax rank: 29
- Individual income tax rank: 43
- Sales tax rank: 7
- Unemployment insurance tax rank: 40
- Property tax rank: 26
Overall, Wisconsin rose one position (from 39 to 38) from 2017 to 2018.