Wisconsinites contributed the smallest percentage of their personal incomes to state and local taxes in 2009 than in the 15 years prior, according to a report released November 17.
The report by the Wisconsin Council on Children and Families said that taxes decreased by 15 percent in that time. The report also noted that since 2000, Wisconsin has experienced a "significant drop in ranking" among states in terms of revenue and spending per person.
In 2009 Wisconsin ranked 16th in tax revenue, compared to 8th in 2000. State and local taxes per Wisconsinite amount to $123 over the national average. However, Wisconsin is below average in spending per person due to relatively fewer employees on the state government's payroll.
In 2009, the state ranked 36th in aid revenue from the federal government, an area where Wisconsin has continually been low-ranking.
The WCCF report says future tax revenue cuts could "jeopardize Wisconsin's public investments in our state's high quality education and health care systems."
Further tax cuts for certain groups in Wisconsin will be instituted after Gov. Scott Walker signed the 2011-13 biennial budget in June.
Tax cuts in the 2011-13 biennial budget create space for investors, manufacturers and businesses to contribute to Wisconsin's economy by granting tax credits for economically advantageous activities. Credits will also be given to individuals with Health Savings Accounts.
Tax increases will also be implemented by reducing tax credits for low-income working families with children and low-income property owners and renters.
The WCCF said additional tax cuts would "limit the resources available to state and local governments for investments in a healthy, well-educated workforce and safe, livable communities."
But Republican supporters of the cuts say such changes are necessary to stimulate Wisconsin's economy.
Prior to Walker signing the budget, Joint Finance Committee Co-Chair Sen. Alberta Darling, R-River Hills, said the budget "protects taxpayers...and provides a stable environment to grow jobs."
