Conservatively Speaking

Wisconsin income taxes among the highest in the country

Posted by Mary Lazich on Sept. 1, 2009

Taxes

I have written extensively about Wisconsin’s high income tax and low income per capita rankings. The Wisconsin Taxpayers Alliance (WISTAX) has an update, and the results are still grim. WISTAX reports:

“Wisconsin’s income tax claimed 3.3% of personal income in 2007, making it the 10th highest nationally among state income taxes. When compared on a per capita basis, income taxes averaged $1,137 per person, 13th highest nationally, and ahead of all neighboring states except Minnesota. Relying heavily on income tax collections compounds the state’s challenges in projecting annual tax collections.  Sensitive to economic conditions, the income tax can provide unexpected revenues in boom times and significant shortfalls in downturns. As is now the case, when collections fall below projections, the state is faced with a budget gap.

In terms of average tax rate paid, filers in the low-income category paid an average rate of 1.75%, while middle-income filers paid 4.3%. Those in the high-income category paid the highest average rate at 5.52%. Filers at the very top ($200,000 or more) paid an average rate of 5.83%.“

Now is the worst time to consider and approve big increases in taxing and spending given the inability of Wisconsin residents to afford such increases.

Read more from WISTAX.