WISCONSINREPORT.COM (04/12/2010) - The Wisconsin Business Council is lauding a new report by the Wisconsin Department of Revenue that showed the state and local tax burden at its lowest level since 1961 in a ranking of all 50 states and the District of Columbia. Wisconsin ranked 15th in state and local taxes per $1,000 of personal income and 21st per capita, the lowest ranking for Wisconsin since its general sales tax was adopted nearly 50 years ago.
“These rankings are great news for Wisconsin, and it shows we’re on the right track toward making our state more competitive in attracting the best businesses and people,” said Phillip Prange, President and CEO of the Wisconsin Business Council.
“We’d like to congratulate the Governor, the current Democratic leadership, and the past Republican leadership on this achievement and thank them for their efforts,” Prange said.
Another recent report, prepared by Ernst and Young for the Council on State Taxation, ranked the tax burden on Wisconsin’s state and local businesses 30th in the nation, meaning Wisconsin has a better tax environment for businesses than most of the country.
“We look forward to working with leaders from both parties to build on this success and help grow Wisconsin’s economy and create new jobs,” Prange said.
The Wisconsin Business Council is an organization that seeks to support Wisconsin’s economic climate and quality of life through collaboration, improved public policy, and private sector initiatives.
The Wisconsin Department of Revenue, Division of Research and Policy report dated April 8, 2010 indicates the following Key Findings:
- (1) Wisconsin's state and local taxes ranked 15th among the states and the District of Columbia as measured by taxes per $1,000 personal income and ranked 21st on a per capita basis.
- (2) Wisconsin's state and local tax ranking has dropped to its lowest level since FY1961-62.
- (3) The Wisconsin's state and local tax ranking has not been this low since the state adopted the general sales tax.
- (4) Since FY1961-62, Wisconsin has been out of the top 10 states in total taxes only three times, FY1979-80, FY2005-06 and FY2006-07.
This report discusses Wisconsin's state and local government revenue rankings relative to other states and the District of Columbia.
The report presents Wisconsin's ranking for both individual revenue sources (such as the sales tax and fees) and for combined revenue sources (such as all taxes and all general revenues).
The report includes an analysis of Wisconsin's ranking as more comprehensive measures of state and local revenue are considered. The findings demonstrate the "tax" burden in Wisconsin falls to the U.S. average once all general revenues generated in the state are considered and measured as a percent of personal income.
Rankings established in this report are based on state and local government revenue data from the 2006-07 Annual Survey of Government Finances published by the U.S. Census Bureau1. The figures used in this report measure revenue for state and local governments combined.
Population estimates are based on U.S. Census Bureau mid-year population figures for 2006. The personal income data utilized in this analysis is from the Bureau of
Economic Analysis, U.S. Department of Commerce for 2006 released October 16, 2009.
State and local government tax revenues are usually defined, measured, and ranked in one of two ways. (a) One approach measures revenues per $1,000 of personal income (state and local revenue divided by state personal income). (b) The other approach uses per capita calculations (state and local revenue divided by state population).
In this report, the analysis of Wisconsin's rank is presented in terms of revenues per $1,000 of personal income. This approach presents tax burdens relative to overall ability to pay. The appendices to this report, however, include tables displaying Wisconsin's 2006-07 rankings using both income and per capita measures.