“Tax Freedom Day,” the day on which taxpayers have earned enough money to pay their total tax bill for the year, arrives on Thursday (April 19) for Badger State taxpayers, according to the Tax Foundation. Tax Freedom Day takes all federal, state, and local taxes and divides them by the nation’s income.
Last year, Wisconsin taxpayers didn’t break their government obligation chains until April 27, according to the Tax Foundation’s calculations. New York’s tax burden is the heaviest; the Empire State’s Tax Freedom Day arrives on May 14. Residents of Alaska and Louisiana tied for the earliest Tax Freedom Day, April 4.
National Tax Freedom Day also is Thursday, three days earlier than last year. The tax burden easing is thanks in large part to last year’s tax reform package pushed by President Trump and passed by the Republican-controlled congress.
Wisconsin taxpayers have seen an easing of their tax burden over the past seven-plus years. Gov. Scott Walker, backed by the Republican-controlled Legislature, has delivered north of $8 billion in tax cuts. The state’s property tax burden has declined by nearly 20 percent, according to economist Stephen Moore. And Walker has led several rounds of income tax cuts, although the state’s progressive tax system continues to diminish some of its tax relief gains.
Still, Wisconsin is faring better than some of its Midwest neighbors. Illinois and its massive public pension debt won’t celebrate Tax Freedom Day until April 29. Minnesota taxpayers are free, so to speak, on April 27, while the day arrives on April 24 in Michigan. Tax Freedom Day is April 18 in Iowa and April 10 in Indiana.