The struggling economy amid the COVID-19 global pandemic has led to Wisconsin’s tax burden continuing to fall compared to other states, according to an analysis by the Wisconsin Policy Forum.
Wisconsin taxes as a share of income were the lowest in at least 50 years and the state-local tax burden was below the U.S. average for only the second time in decades. The report also showed the state and local taxes paid by Wisconsin residents and businesses in 2020 fell as a share of income in the state for the ninth straight year. The growth in state taxes slowed, with income tax collections falling for the first time since 2014 and sales tax collections growing at their slowest rate since 2010.
One exception to the falling taxes was corporate tax revenues, which remained strong as the national economy struggled. Local taxes rose more rapidly, reflecting the fact that the property tax remains more stable in recessions.
