9.8.21. Junjie Guo, Noah Williams, Zhuoer Ren, and Qi Yang. We study how the state corporate tax rate and 15 measures of the state corporate tax base have been evolving since 1980, with a particular focus on changes in the last decade.
Fiscal Policy
Middle Income Tax Reform Options for Wisconsin
6.22.21. Junjie Guo and Noah Williams. As an amendment to our initial report on June 17 titled “Middle Income Tax Reform Options for Wisconsin”, we evaluate the potential impacts of cutting the third income tax rate from 6.27% to 5.3%, a proposal approved by the Joint Committee on Finance on the same day.
The Distribution of Income and Income Taxes in Wisconsin
3.19.21. Noah Williams. The Wisconsin Department of Revenue has recently released some summary statistics from Wisconsin state income tax returns, covering the years 2014-2019. These data provide insight on the distribution of income and income taxes in the state.
State and Local Government Revenue During the COVID-19 Pandemic
2.12.21. Noah Williams. While the early months of the COVID-19 pandemic put stress on the budgets of state and local governments around the country, their tax revenues have since rebounded. In addition, the federal government has already allocated substantial aid to these governments, which has more than offset the losses they have suffered.
The Revenue and Incentive Effects of AB 910 and Alternative Reforms in Wisconsin
2.21.20. Junjie Guo and Noah Williams. We evaluate the effects of the expansion in the standard deduction proposed recently in AB 910 by Wisconsin lawmakers. We find it would reduce taxes for about 2 million taxpayers and reduce state tax revenue by about $200 million, so the reduction per affected taxpayer is about $100.
Does it Pay to Tax the Rich?
1.6.20. Zhigang Ge. The recent tax policy debate has largely focused on increasing taxes on top earners. Many policies have been proposed with the clear goal of raising tax revenues, such as increasing top income tax rates or imposing wealth taxes.
Marginal Tax Rates and Individual Income Tax Reforms in Wisconsin
5.10.19. Junjie Guo and Noah Williams. Wisconsin has a progressive individual state income tax system, which features increasing marginal tax rates (the tax rate on the last dollar earned) as income rises. However other aspects of the tax code, such as the earned income tax credit (EITC) and standard deduction, change the effective marginal tax rate that taxpayers face.
The Impact of Income Tax Reductions in Wisconsin
12.19.18. Junjie Guo and Noah Williams. On June 30, 2013, Wisconsin Act 20, which reduced the state’s personal income tax rates for the first time since 1999 and eliminated a tax bracket, was signed into law. This reform was later followed by 2013 Wisconsin Act 145, which further reduced the marginal tax rate for the bottom income bracket.
State-Level Implications of Federal Tax Policies
12.7.18. Chang Liu and Noah Williams. The United States federal fiscal policy has differential impact across states. We construct a new quarterly state-level dataset that we use to analyze the impact of unexpected changes in federal personal and corporate income taxes.
The Impacts of State Tax Structure: A Panel Analysis
8.29.18. Jacob Goss and Chang Liu. From a panel study of states across the U.S., we find that the individual income tax rate is significantly negatively correlated with per capita personal income growth and contemporaneous state total tax revenue.