Wisconsin taxes as share of income dropped more than most states over past 20 years | Local Government

Wisconsin taxes as a percentage of income have declined more than almost any other state over the past two decades, according to a new report from the non-partisan Wisconsin Policy Forum.

In 1999, state and local governments in Wisconsin received $ 17.4 billion from taxpayers, or about 12.2% of total personal income – the fourth highest percentage in the country. In 2019, total state taxes of $ 30.6 billion accounted for 10.3% of personal income, ranking 23rd nationwide.

That 1.87 percentage point decrease was the largest decrease in the nation over the 20-year period, according to the forum.

Taxes for each resident were the sixth highest in the country in 1999 at $ 3,288, or about $ 5,045 in 2019, adjusted for inflation. In 2019, the state was ranked 24th in the country with $ 5,275 in per capita taxes.

The share of taxes in personal income fell by 15.4% in these 20 years, lagging behind Florida (-18.5%) and Michigan (-15.5%).

“The less than two percentage point decrease in the tax burden in Wisconsin may seem modest, but it represents a significant shift,” the report said. “If the state’s tax burden as a percentage of income in 2019 had been the same as it was in 1999, state taxpayers could have paid $ 5.57 billion more in taxes to state and local governments.”

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