“Cheeseheads” Leaving Because of Taxes

Despite excellent leadership by Governor Scott Walker, citizens of Wisconsin are leaving the state due to oppressive tax rates, according to a recent study by the free-market MacIver Institute. The governor made a historic amount of tax cuts, yet work remains to be done.

The study shows that for many of Wisconsin’s citizens, packing up the moving van can result in considerable additional lifetime income, simply by reducing their tax burden.

When these workers exit Wisconsin and move to a more tax-friendly state, some $136 million in potential tax revenues leave Wisconsin each year.

How much can families save?  Well, according to the study, up to $50,000, depending on tax status. That might be enough to partially fund a college education, or erase the remaining amount on a home mortgage.

In light of the study’s findings, along with the extensive data found in How Money Walks, it seems rather likely that we will continue to see a population shift towards those states with the most favorable tax policies.

Bear in mind that it will be educated workers who will have the greatest potential to find appealing positions in other states and who receive the greater net benefit from lower taxes. Therefore these folks are the most likely to leave.

Consider the states that have the most burdensome tax policies and correspondingly often have enormous long-term liabilities (think: Illinois). These states are an object lesson in what not to do.

Governor Walker has shown strong leadership on the issue of tax reform. But for Wisconsin to implement lasting change, members of the legislature must support and shepherd the governor’s bold ideas.

Chad Stafko is a writer and political consultant living in the Midwest.