Happy (?) Tax Freedom Day, Wistaxsin

Wisconsin has arrived at Tax Freedom Day, which according to the Tax Foundation is …

… the day when the nation as a whole has earned enough money to pay its total tax bill for the year. Tax Freedom Day takes all federal, state, and local taxes and divides them by the nation’s income. In 2019, Americans will pay $3.42 trillion in federal taxes and $1.86 trillion in state and local taxes, for a total tax bill of $5.29 trillion, or 29 percent of national income. This year, Tax Freedom Day falls on April 16, or 105 days into the year. …

… Since 2002, federal expenses have surpassed federal revenues, with the budget deficit exceeding $1 trillion annually from 2009 to 2012. In calendar year 2019, the deficit is expected to increase from $981 billion to $1.09 trillion. If we include this annual federal borrowing, which represents future taxes owed, Tax Freedom Day would occur on May 8, 22 days later. The latest ever deficit-inclusive Tax Freedom Day occurred during World War II, on May 25, 1945. …

The total tax burden borne by residents of different states varies considerably due to differing state tax policies and the progressivity of the federal tax system. This means that states with higher incomes and higher taxes celebrate TFD later: New York (May 3), New Jersey (April 30), and Connecticut (April 25). Residents of Alaska will bear the lowest average tax burden in 2019, with Tax Freedom Day arriving on March 25. Also early are Oklahoma (March 30), Florida (April 4), and Louisiana (April 4).

Put another way, Wisconsin has the 16th highest federal, state and local taxes in the U.S., up from 17th one year ago.

This blog follows Tax Freedom Day every year — April 12, 2010, April 16, 2011April 21, 2012April 20, 2013April 22, 2014April 25, 2015April 27, 2016, April 27, 2017, and April 19, 2018. The first eight years were under Democratic presidents, and Democrats raise taxes as often as the sun rises in the east. On the other hand, Republicans controlled the executive and legislative branches of state government from 2011 to 2018, and yet this state’s tax burden got worse, not better.

The difference between 2017 and 2018 is not, sadly, because of major tax cuts; it’s because of a difference in the Tax Foundation’s methodology. As it is, with a Democratic governor and a Legislature apparently hell-bent on increasing gas taxes despite a majority of the public not favoring gas tax increases, our 2020 Tax Freedom Day will probably be later than this year’s.

Given the reality of our overtaxation, this from Yahoo! Finance isn’t a surprise:

As the tax deadline nears, residents of some states are bearing the brunt of it more than others. …

WalletHub looked at four different types of taxation: Real-Estate Tax, Vehicle Property Tax, Income Tax, and Sales & Excise Tax.

Here’s a breakdown of each, based on WalletHub’s data:

Being a homeowner in New Jersey isn’t cheap at all — in fact, NJ residents see the highest effective real-estate tax (otherwise known as property tax) rate in the country, at 8.13%. Trailing behind are Illinois (7.71%), New Hampshire (7.33%), Connecticut (6.89%), and Wisconsin (6.47%). WalletHub calculated these rates by dividing the effective median real estate tax in that state to the median income. …

And if property taxes are an issue, note that Hawaii has the lowest rate at 0.90%. Alabama, Louisiana, D.C., and Colorado aren’t far behind, all under 2%.

In terms of taxing residents income states like Alaska, Florida, South Dakota, Texas, Washington, and Wyoming all have a 0% rate. Yet, in Kentucky, residents pay a 5.01% tax on their income. Maryland, Oregon, and Pennsylvania are pricey too, with tax rates above 4% on their residents.

That is, again, after eight years of Republican control of state government. The GOP and former Gov. Scott Walker deserve complete blame for failing to campaign into the state Constitution Taxpayer Bill of Rights-like permanent controls restricting spending and taxes.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s