From the Wisconsin Policy Forum: “As the pandemic and the resulting recession hit in 2020, Wisconsin’s state and local tax burden fell to its lowest level in at least a generation, new data from the U.S. Census Bureau show. Despite the decrease in tax revenues as a share of income in Wisconsin, the state’s tax ranking compared to other states actually became somewhat less favorable. That’s likely due to tax collections in other states being hit harder by COVID-19. Wisconsin’s tax burden, however, remains below the national average despite the state receiving less from fees and federal aid.”
Read the report: State Tax Burden Drops Yet Again
This new report follows one released in November 2021 detailing that over the past 20 years, almost no state has seen a greater drop in its tax burden than Wisconsin, which also saw its ranking among states fall from fourth to the middle of the pack. Depending on how it is measured, the drop in Wisconsin’s state and local taxes as a share of personal income was the largest or nearly the largest nationally since 1999.
