A new Wisconsin Policy Research Institute study finds Wisconsin would “benefit long-term from lower taxes and a different tax mix.” The study continues by stating that “approximately 11.6 percent of personal income typically goes to pay an array of taxes – a higher percentage than in at least two-thirds of other states.”
WPRI examined reducing the individual income tax rate by 10 percent and reducing the corporate rate to the new highest individual rate of 6.885 percent. The study found this would lower the tax burden by $900 million and create 11,300 new jobs by 2018, $300 million in new investment, and $1.1 billion in new disposable income.
Alternatively, WPRI notes that the over tax mix can be changed. The study examines reducing income and property taxes, while removing some sales tax exemptions. With this alternative tax mix, WPRI notes that Wisconsin could cut individual income tax by $730 million and property tax by $1.1 billion and still lower the sales tax by a half percentage point. WPRI estimates that this alternative tax mix would create 10,580 new jobs, $948 million in new investment, and $892 million in new disposable income. The 24 sales tax exemptions removed include grocery store food, gas, construction labor, legal services, bottled water, fitness clubs, newspapers, coffins, and funeral services.
Report calls on Wisconsin’s leaders to cut taxes further: Milwaukee Journal Sentinel, September 30, 2013
Study: Cutting tax rates, broadening sales tax base would boost Wisconsin economy: Wisconsin State Journal, October 1, 2014