The Badger Institute and the Tax Foundation provide ideas for using revenue to address structural issues with the state’s tax code
Washington, D.C. (August 2, 2018) — Wisconsin is poised to collect an estimated $120 million in additional annual online sales tax revenue following the U.S. Supreme Court’s recent South Dakota v. Wayfair ruling. In a joint policy brief released today, the Tax Foundation and the Badger Institute urge Wisconsin lawmakers to use this revenue flexibility to fix structural issues with the state’s tax code.
Given how poorly the state’s individual and corporate tax structure ranks on the Tax Foundation’s State Business Tax Climate Index, this revenue gives lawmakers ample room to make the tax code more fair and efficient.
“Meaningful structural changes to the state’s individual income tax, corporate income tax, and other parts of its tax code have the potential to make the state more attractive to businesses and families while improving the state’s competitiveness among its neighbors and as a key player in the national economy,” the report’s authors write.
Wisconsin’s 2018 State Business Tax Climate Index rankings:
Overall Rank: #38
Corporate Taxes: #29
Individual Taxes: #43
Sales Taxes: #7
Property Taxes: #26
Unemployment Insurance Taxes: #40
Click here to read the full analysis.
Note: This policy brief precedes a larger joint Tax Foundation & Badger Institute report, to be published at the end of 2018, outlining tax reform options for Wisconsin policymakers to consider. These proposals will be designed to help set the state on a path to a stronger fiscal future.
For more information, contact:
Michael Jahr, Vice President, Badger Institute, 262-442-5208 or michael@badgerinstitute.org
or
Kevin Kaufman, Marketing Associate, Tax Foundation, 202-836-7514 or kkaufman@taxfoundation.org
