The New War Between States and What it Means for Wisconsin

June 6, 2014

A recent article by John Fund of National Review tells the story of how capital is continuing to flow to states with lower taxes. Census Bureau statistics tell us that the fastest growing metropolitan areas last year were in states with low tax burdens such as North Carolina and Texas, while union-heavy cities in Michigan, New York, and Ohio continued to lose population.

In Wisconsin, tax cuts enacted in recent years have certainly contributed to improved economic conditions, but the state’s overall tax burden, based on 2011 data, is still among the nation’s highest.

Even though our recent tax cuts will help our rankings in the future, the question remains: will Wisconsin continue on the path of other low-tax states to attract capital and more people?

“The U.S. is swiftly becoming a tale of two nations,” writes Fund. “States that are following the Reagan model of low taxes and incentives are booming while states that are opting for the Obama model of wealth redistribution and European welfare-state economics are stagnating.”

Check out the full article at