Browsing: Tax Reform

Taxes in the Badger State are simply too high and too uncompetitive — which is why Wisconsin must consider a low, flat-rate individual income tax.

Wisconsin’s governor talks of new 9.8% top tax rate — one that would wallop businesses that don’t flee.

A single-rate tax reform would change Wisconsin’s tax picture from a grave liability to an advantage.

How does Wisconsin’s spending compare to other states? It depends which ones you’re looking at and what sort of spending counts.

How do other states without an income tax fund essential services? Under what circumstances would this be feasible in Wisconsin?

People are leaving Illinois, Minnesota and Iowa and, according to a new study by the Tax Foundation, the loss of state revenue and the population migration are closely tied to punitive tax structures in those states.

Sociologist Brad Wilcox is telling young people to marry because it will make them happier. “People who embrace the core values and virtues associated with marriage are more likely to flourish both in marriage and in life.”

Free-market reforms are driving prosperity and fostering human flourishing in the Dairy State. This unmistakable trend is evident in state economic indicators from recent decades, a hopeful story that can instill pride in all Wisconsinites.

The population of Eau Claire County, now approximately 108,000, has grown almost 10% just since 2010. A little farther west, just across the St. Croix River from Minnesota, St. Croix County has grown 15%.

Wisconsin’s Republican lawmakers recently introduced Assembly Bill 660, aiming to help employers provide support for working families in meeting the costs of childcare. While the bill’s intentions are commendable, the approach of directly subsidizing employers to create and subsidize childcare slots has proven ineffective in other contexts.

The Badger Institute favor tax cuts. But the problems with SB 435 are two-fold: unfair tax exemption and poorly targeted tax relief.

Social Security already is exempt from income taxes in Wisconsin. Now two Republican legislators are circulating a bill that would virtually eliminate all income taxes on retirees.

It’s telling that Gov. Evers, Sen. Larson and the rest keep using words like “the wealthy” and “rich” to talk about their targets. The Wisconsin income tax is levied not on wealth that people have saved but on income — what they earn. If you say “rich,” with its implications of inheritance or luck, you don’t have to grapple with how taxes take what someone is working for.

Using his partial veto power, Gov. Tony Evers removed the Legislature’s first steps on tax reform for Wisconsin, canceling a simplification of Wisconsin’s income tax rates and a reduction in the rates covering much of the middle class and most of the state’s businesses.

Wisconsinites clearly got some wins in the 2023-2025 biennel budget. Now the task at hand is consolidate and expand those moving forward.

A plan passed by Wisconsin’s Joint Finance Committee saves taxpayers $3.5 billion over two years, money that came from them in the first place because they’re currently overtaxed. Gov. Evers would do well to sign off on that plan.

The Badger Institute supports a flat-rate individual income tax, a structure increasingly adopted by competing states. We have spent years researching options for reform that includes a single, low rate. But if that is out of the question as budget negotiations proceed, the priority should be Wisconsin’s top rate.

Among the bills Republicans are considering in the Legislature is one eliminating the last remnants of Wisconsin’s personal property tax. The bill, AB2, sponsored by Rep. Dan Knodl (R-Germantown), would end property taxes on everything but real estate.The move is one the Badger Institute long has advocated.

America is choosing sides and Wisconsin — given the lurch to the left along its borders — can greatly benefit.

Minnesota, Illinois and Michigan are all now among America’s 17 thoroughly blue states where Democrats control both chambers of the legislature as well as the governor’s mansion. We are just one of 11 states with divided government, according to Ballotpedia, and Iowa is one of 22 states that is totally red.

Wisconsin’s top marginal income tax rate—the rate that matters most to the state’s economic competitiveness—remains among the highest in the country. Moving to a flat tax would substantially improve Wisconsin’s tax competitiveness. Separately, repealing the personal property tax would reduce compliance burdens for taxpayers and administrative burdens for the state. As policymakers work on the next biennial budget, each of these policy changes deserves thoughtful consideration.