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Institute for Reforming Government

Wisconsin Should Eliminate the State Income Tax

Wisconsin families and small businesses are being crushed by our state’s high-income taxes and overall tax burden. With the 9th highest income tax rate in the nation, the Badger State is simply not competitive in the battle for workers and families looking to relocate to low-tax states. It’s not competitive for current Wisconsinites who want to hold onto more of their hard-earned money. And it’s not competitive for small businesses, a majority of whom file taxes at individual rates.
One way to make Wisconsin a national leader: eliminate the personal state income tax, keep Wisconsinites in Wisconsin, and welcome businesses who want to grow right here in the Midwest. Increase the state sales tax by 3% – while keeping existing sales tax exemptions on everyday items like groceries, rent, medical expenses, and childcare – in order to cut taxes, drive economic growth, and generate new state revenue

This tax plan will lead to a projected net $3.5 billion statewide tax cut, and $1,700 back in the pockets of Wisconsin families every year.

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