Unless Wisconsin attracts new migrants on a large scale, the state’s prime working age population by 2030 could shrink by 130,000, according to a report released this week by Forward Analytics. Analyzing IRS data, the author found that over the last decade the state lost 106,000 income tax filers under the age of 26 to other states while attracting fewer than 89,000. One encouraging trend is that some who left the Badger State seem to return as they head into the family formation years (ages 26-54).
Two factors often weighed by families considering an interstate move are tax rates and the quality of schools in the states they’re considering. Research released by the Tax Foundation and the National Center for Education Statistics this week demonstrates the urgent need for Wisconsin to improve on both the tax and education fronts if the state wants to keep and attract talent.
Wisconsin remained in a less-than-inspiring 27th position in the Tax Foundation’s 2023 State Business Tax Climate Index released on Tuesday. Other states are rapidly growing more competitive, with close to half reducing income tax rates in the past two years alone, and four transitioning to a flat tax structure.
“In an increasingly competitive tax landscape, standing still means falling behind, and Wisconsin’s 2023 index ranking reflects that,” Janelle Fritts, Tax Foundation policy analyst and co-author of the index, told the Badger Institute.
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