[Madison, Wisc…] With the recent news from the Legislative Fiscal Bureau that Wisconsin’s economy continues to be strong and tax revenue is expected to be $818 million more than originally anticipated at the end of the 2019-2021 biennium, the John K. MacIver Institute for Public Policy is asking Governor Tony Evers and the Legislature to consider adopting a 3% flat tax.
MacIver President Brett Healy issued the following statement:
“The most recent fiscal estimate is great news and another reminder that fiscal discipline, sensible regulation and cutting taxes has been a winning recipe for all Wisconsinites. We should use this momentum, build on our record of success and lock in long-term and meaningful tax reform that will benefit all Wisconsinites. Now is the time to adopt bold tax reform that will make Wisconsin an economic powerhouse for generations to come.”
Wisconsin’s top income tax rate of 7.65% is the 10th highest in the country and our lowest income tax rate of 3.86% is the 6th highest rate among states with a progressive income tax. Our lowest income tax rate was previously tied at the 4th highest among states with a progressive income tax before 2019 Act 9 and Act 10 tax reforms lowered the two lowest income tax bracket rates.
Though our lowest income tax rate was reduced in 2019, Wisconsin is still one of the worst places for the working poor in terms of the tax rate they pay. If Wisconsin adopted a 3% flat income tax rate, Wisconsin would have the lowest tax rate in the Midwest and the 2nd lowest flat tax rate in the entire country.
“We can use the temporary revenue surplus to create a simpler, fairer tax code that will lower the tax burden for everyone,” Healy said. “A low 3% flat tax will help Wisconsin attract new families, recruit new businesses, keep our retirees from leaving and entice college graduates to work in the state.”
For the full report on A Glide Path to a 3% Income Tax, click here.