Wisconsinites are devoting a larger share of their income to paying taxes. A new report from the Wisconsin Taxpayers Alliance shows nearly one-third of personal incomes are going towards taxes. Ryan Parsons, a research associate with WISTAX, says total federal, state, and local taxes climbed about 5% in 2006. He says it's also the first time since 2000 that taxes have claimed more than 33% of our personal income.
Parsons says the increases can be seen as both good and bad for the state. While it means we are paying more in taxes, he says it's also a sign the state is currently experiencing a strong economy. Overall, Parsons says the rate of tax increases are slowing down. However, a decline in corporate taxes in the past year could be a sign that tougher economic times are ahead.