News

State tax burden increases

As the U.S. Census Bureau recently released its 2004 annual report revealing Wisconsin to have the twelfth-highest tax burden in the nation, Republicans are calling for reformatory legislation while Democratic Gov. Jim Doyle is defending his proposed budget.

Per capita, taxpayers shell out $2,275 in Wisconsin, a figure derived by dividing tax revenue by the state’s population. Wisconsin’s tax burden rose by $67 per capita from 2003’s figure of $2,208, while in comparison, the nation’s tax burden per capita has risen by $133 from $1,892 in 2003 to $2,025 in 2004.

While the state’s overall tax burden has risen, the total amount taxed on tobacco products, individual income and corporation net income has decreased slightly.

Comparative to the rest of the nation, Wisconsin has moved down a spot from 2003’s eleventh-place ranking. But regardless, the state’s high position in the report has some concerned.

“It’s a definite sign that Wisconsin families are paying higher taxes than those of the rest of the nation,” according to Mike Prentiss, spokesperson for State Sen. Scott Fitzgerald, R-Juneau. “The people of Wisconsin are over-taxed.”

Prentiss added Republicans are pushing for a property tax freeze among other options to try and reduce the tax burden in the state.

“Republicans care about this issue a lot and have repeatedly tried to lower taxes, but Gov. Doyle continues to stand in the way, especially of the property tax freeze,” Prentiss said.

The property tax freeze, though approved by the Republican-controlled Legislature, failed to meet the governor’s standard of two-thirds funding for public education. Though Doyle has proposed his own property tax freeze plan, Republicans are alleging his freeze does not amount to a freeze at all.

However, according to Doyle spokesperson Melanie Fonder, the governor has presented a responsible property tax freeze in his budget that invests a “historic amount” in Wisconsin schools.

“The legislature should take a close look at it,” Fonder said.

Overall the national total tax burden has increased by 8.1 percent from 2003 to 2004, tallying to $593 billion.

Leading the report are Hawaii at $3,048, Wyoming at $2,968, Connecticut at $2,937, Minnesota at $2889 and Delaware at $2,862. Others states preceding Wisconsin include Vermont, Massachusetts, New Jersey, California, New York and Michigan. A number of eastern states follow while several southern states round out the list with Texas ranking last at $1367.

Economists urge examiners of the annual report to keep in mind that census numbers do not include tax levies by local governments, a fact that helps to explain Hawaii’s top position within the list. In Hawaii, the state government funds public school education, a service typically supported by local governments in other states.

The impact of the tax burden is significant, as it serves as a determining factor in a number of important state issues, from its business atmosphere to its population, as some people choose their locale based upon the state’s tax burden.

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