A dozen years of conservative fiscal policy has led to the lowest tax burden and the highest tax collections on record.
The Wisconsin Policy Forum released a new study on Thursday that says the state’s tax burden is at its lowest level ever.
“With a historic state income tax cut now in effect, the combined state and local taxes paid by Wisconsin residents and businesses in 2022 fell as a share of income in the state to the lowest level on record,” the report states. “In fiscal year 2022 (the 12 months ended on June 30), state and local tax revenues fell as a share of personal income in the state to just under 10.1%, down from 10.3% in 2021.”
“One major cause of the drop in 2022 – though far from the only one – is the $1 billion a year cut in state income taxes approved as part of the 2021-23 budget,” the report added. “Another is the state’s policy of limiting most property tax increases by local governments in the state – from towns and cities to school districts.”
Policy forum researchers say it is also key that Wisconsin taxpayers saw a 6.7% growth in their personal income in 2021, that’s the most recent year with available data.