All Posts by Empower Wisconsin

Spotlight: Eliminating the income tax

By M.D. Kittle

MADISON — Wisconsin has the oldest continuously operating state income tax in the nation, and one of the most costly to taxpayers.

A new report by the University of Wisconsin-Madison Center for Research on the Wisconsin Economy (CROWE) lays out a roadmap for killing the state income tax, a plan UW economics Professor Noah Williams says could bring $1,700 per household in tax relief — a total tax cut of $3.5 billion.

To offset the hit to staff coffers, Williams, the author of the study, proposes raising the state sales tax rate from 5 percent to 8 percent. Existing sales tax exemptions on everyday items like groceries, rent, medical expenses, and childcare, would remain in place.

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