The headline in the Wisconsin State Journal (WSJ) sure sounds good:
“Wisconsin falls from ranks of top 10 highest-taxed states for first time since 1980”
According to the University of Wisconsin and the non-partisan Wisconsin Taxpayers Alliance (WISTAX), this would be only the second time since 1969 Wisconsin has not been in the top ten in taxes nationwide.
The researchers looked at data from 2006, the latest year that data was available.
How did this happen?
As the WSJ reports, “Wisconsin's taxes actually rose slightly in the fiscal year ended in June 2006 but those of other states rose more quickly.”
Translation: You’re still paying high taxes, Wisconsin, and they’re not going down.
I have written that state and local governments take a good-sized portion of your income. The painful trend continues.
According to the WSJ, “All state and local taxes amounted to $22.3 billion, or 12.3 percent of personal income in Wisconsin in 2006. That was up slightly from the previous year, when taxes accounted for 12.1 percent of personal income. The national average in 2006 for state and local taxes was 11.6 percent of personal income.”
Remember, the Legislature approved and Governor Doyle signed into law the 2007- 2009 state budget that increased taxes and fees by $763 million. I voted against the budget because it taxes and spends too much and beyond the rate of inflation. Shortly after the general legislative session ended mid-March, the state learned it had a budget revenue shortfall of $652.3 million. The amount of incoming revenue was not enough to fund committed spending.
Wisconsin also has a structural deficit of over $1.6 billion. A structural deficit occurs when future projected revenues fail to match future expenses. It is clear Wisconsin has yet to solve the propensity to tax and spend.
If you listen to the positive spin coming out of Governor Doyle’s office, the good news is Wisconsin is trending in the right direction. I would hold that thought until we see the impact of the spending and borrowing in the most recent budget, and in the bill referred to as the budget repair bill.
Here is the WSJ article.
Here’s a report from the Wisconsin Taxpayers Alliance.
