AP NEWS

Taxes consumed smaller percentage of income again in 2019

January 7, 2020 GMT

MADISON, Wis. (AP) — Wisconsin residents continue to spend less of their income on taxes, according to a new report from the Wisconsin Policy Forum.

The report found that Wisconsinites spent 10.3% of their income on state and local taxes in fiscal year 2019, down from 10.4% in 2018. The share of income consumed by taxes has declined every year since 2011, the report said.

Tax revenues grew by 4.5% in fiscal year 2019, due mostly to a 6% increase in state collections, the report said, marking the biggest percentage increase since 2011. But the jump was offset by a 5.1% increase in personal income in 2018, leaving residents better able to pay the higher taxes.

Local tax collections grew 1.8%, which was below the rate of inflation and less than a 1.9% increase in 2018. Local taxes as a share of personal income dropped from 3.6% in 2018 to 3.5% in 2019, their lowest level in Forum records dating back to 1970.

The report concludes that sweeping changes to state and local taxes look unlikely as long as state government remains divided. Republicans currently control both legislative houses and Democrat Tony Evers holds the governor’s office.