{"id":10285,"date":"2024-04-18T19:43:39","date_gmt":"2024-04-18T19:43:39","guid":{"rendered":"https:\/\/wifamily.news\/?p=10285"},"modified":"2024-04-18T20:04:56","modified_gmt":"2024-04-18T20:04:56","slug":"five-surprising-facts-about-the-wisconsin-economy-experiencing-the-benefits-of-free-market-reforms","status":"publish","type":"post","link":"https:\/\/wifamily.news\/?p=10285","title":{"rendered":"Five surprising facts about the Wisconsin economy: Experiencing the benefits of free market reforms\u00a0"},"content":{"rendered":"

This post originally appeared at https:\/\/www.badgerinstitute.org\/five-surprising-facts-about-the-wisconsin-economy-experiencing-the-benefits-of-free-market-reforms\/<\/a><\/p>\n

Introduction:<\/em><\/p>\n

How is Wisconsin doing, economically? Remarkably well, Badger Institute Visiting Fellow Scott Niederjohn finds as he examines the trends.<\/p>\n

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Our taxes are more competitive than they were even just a decade ago. We\u2019re attracting people, unlike some neighboring states. Wisconsinites are more likely to work than are Americans generally, and we\u2019re more likely to start businesses than people elsewhere. And since 2009, we\u2019ve moved briskly up the ranking of jurisdictions by economic liberty, thanks to deliberate free-market reforms.<\/p>\n

Niederjohn, who directs the Free Enterprise Center at Concordia University Wisconsin, brings the data showing how far Wisconsin has come. We hope you find it as encouraging as we did as we ponder the further reforms our state can pursue.<\/p>\n

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Free-market reforms are driving prosperity and fostering human flourishing in the Dairy State. This unmistakable trend is evident in state economic indicators from recent decades, a hopeful story that can instill pride in all Wisconsinites. This article will explore five potentially surprising facts about the Wisconsin economy. The surprise stems from the contrast between today\u2019s vibrancy and the state\u2019s historical reputation for high taxes and a less than friendly business climate.<\/p>\n

1. Tax reform<\/p>\n

Wisconsin has dramatically improved its competitiveness among the U.S. states in tax burden.<\/em><\/strong><\/h5>\n

The days of Wisconsin being considered a \u201ctax hell\u201d are long gone. Over the past decade alone,\u00a0Wisconsin has climbed 10 positions among the 50 states in the Tax Foundation\u2019s Business Tax Climate Index. Currently, Wisconsin is near the middle of the pack, ranking 24th<\/sup> in 2024.1<\/sup> Successive governors and legislative majorities of both parties have heard the message of the Badger Institute and free-market allies, and now the state has a tax burden below the national average, amounting to $102.60 per $1,000 of personal income. This burden is significantly lower than that of border states such as Minnesota ($121.70) and Illinois ($118.40). In recent years Wisconsin has repealed its personal property tax for businesses and reduced the lowest marginal income tax rate.<\/p>\n

2. Net migration<\/p>\n

People are moving to Wisconsin in greater numbers than they are leaving, bringing added economic prosperity with them.<\/em><\/strong>\u00a0<\/h5>\n

The latest figures indicate that people are moving to Wisconsin in significantly larger numbers than they are moving out. According to the U.S. Census Bureau, net migration from 2022 to 2023 was a gain of 5,648 residents.2<\/sup> During the same period, all of Wisconsin\u2019s border states had a negative net migration balance. Illinois (-83,839), Iowa (-3,603), Michigan (-15,051), and Minnesota (-4,686) lost significant numbers of residents.<\/p>\n

These statistics, from the Census Bureau\u2019s Annual Population Estimates study, showed that California (-338,371) and New York (-216,778) were the states experiencing the greatest net domestic migration outflows, while Texas (+180,767) and Florida (+194,438) led in inflows.<\/p>\n

At a more local level, Census figures show that of Wisconsin\u2019s 72 counties, 58 gained population via net domestic migration. Table 1 reveals the top counties in positive net migration, led by Dane (2,092) and Waukesha (1,785). Table 2 shows the counties that lost the most population via domestic net migration, led by Milwaukee (-8,408) and Kenosha (-525).<\/p>\n

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Table 1<\/strong><\/p>\n

\n\n\n\n\n\n\n\n\n\n
Top five Wisconsin counties in net domestic migration<\/strong>\u00a0by change in persons (2022 to 2023)<\/strong>\u00a0<\/td>\n<\/tr>\n
County<\/strong>\u00a0<\/td>\nNet Migration<\/strong>\u00a0<\/td>\n<\/tr>\n
Dane\u00a0<\/td>\n+2,092\u00a0<\/td>\n<\/tr>\n
Waukesha\u00a0<\/td>\n+1,785\u00a0<\/td>\n<\/tr>\n
Eau Claire\u00a0<\/td>\n+885\u00a0<\/td>\n<\/tr>\n
Winnebago\u00a0<\/td>\n+659\u00a0<\/td>\n<\/tr>\n
St. Croix\u00a0<\/td>\n+522\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>
Source: U.S. Census Bureau\u00a0<\/figcaption><\/figure>\n<\/div>\n
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Table 2<\/strong><\/p>\n

\n\n\n\n\n\n\n\n\n\n
Bottom five Wisconsin counties in net domestic migration<\/strong>\u00a0by change in persons (2022 to 2023)<\/strong>\u00a0<\/td>\n<\/tr>\n
County<\/strong>\u00a0<\/td>\nNet Migration<\/strong>\u00a0<\/td>\n<\/tr>\n
Milwaukee\u00a0<\/td>\n-8,408\u00a0<\/td>\n<\/tr>\n
Kenosha\u00a0<\/td>\n-525\u00a0<\/td>\n<\/tr>\n
Clark\u00a0<\/td>\n-191\u00a0<\/td>\n<\/tr>\n
Trempealeau\u00a0<\/td>\n-130\u00a0<\/td>\n<\/tr>\n
Columbia\u00a0<\/td>\n-121\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>
Source: U.S. Census Bureau\u00a0<\/figcaption><\/figure>\n<\/div>\n<\/div>\n

Internal Revenue Service figures3<\/sup> identify states that are gaining tax returns and individuals from Wisconsin \u2014 and the income that those moving individuals earned. Between 2020 and 2021, Florida emerged as the top gainer, adding the most tax returns (+2,166), individuals (+4,167) and adjusted gross income (+$463 million) from Wisconsin. Texas came in second.<\/p>\n

The same measures show Wisconsin experienced its largest net gains from Illinois, with a net inflow of more than 7,400 individuals and almost $560 million in adjusted gross income in 2021. Notably, Wisconsin also saw positive migration from California, including net migration of more than 1,100 individuals and a net gain of more than $75 million in adjusted gross income.<\/p>\n

Compared with our Midwest neighbors, Wisconsin gained returns, residents and income from Illinois, Iowa and Minnesota (Table 3). Relative to Michigan, the same measures show a gain in tax returns but a modest net loss in individuals and adjusted gross income. Analysis of the American Community Survey4<\/sup> makes it clear that the counties in southern Wisconsin, along with Dane County, benefited the most from the positive net migration from Illinois. The gains from Minnesota are heavily concentrated in northwest Wisconsin, along the border near Minneapolis-St. Paul and, once again, in Dane County.<\/p>\n

Table 3<\/strong><\/p>\n

\n\n\n\n\n\n\n\n\n
Sources of net migration to Wisconsin from border states<\/strong>\u00a0\u2014 Net changes (2021)<\/strong>\u00a0<\/td>\n<\/tr>\n
State<\/strong>\u00a0<\/td>\nNet tax returns<\/strong>\u00a0
to Wisconsin<\/strong>\u00a0<\/td>\n		Net individuals<\/strong>\u00a0
to Wisconsin<\/strong>\u00a0<\/td>\n		Net adjusted gross income<\/strong>\u00a0
to Wisconsin (in thousands of dollars)<\/strong>\u00a0<\/td>\n<\/tr>\n
Illinois\u00a0<\/td>\n+4,145\u00a0<\/td>\n+7,468\u00a0<\/td>\n+$559,641\u00a0<\/td>\n<\/tr>\n
Iowa\u00a0<\/td>\n+184\u00a0<\/td>\n+304\u00a0<\/td>\n+$14,572\u00a0<\/td>\n<\/tr>\n
Michigan\u00a0<\/td>\n+16\u00a0<\/td>\n-304\u00a0<\/td>\n-$16,358\u00a0<\/td>\n<\/tr>\n
Minnesota\u00a0<\/td>\n+1,439\u00a0<\/td>\n+3,090\u00a0<\/td>\n+$243,892\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>
Source: Internal Revenue Service\u00a0<\/figcaption><\/figure>\n

3. Labor force participation and unemployment rates<\/p>\n

Wisconsin has a vibrant labor market, typically outperforming the national average and bordering states.<\/em><\/strong><\/h5>\n

As shown in Figure 1, since 2000 Wisconsin has experienced a lower unemployment rate than the country overall in every year except 2006 and 2007. Even amid historically low national unemployment rate such as 3.7% in 2023, Wisconsin still outperformed the nation with a rate at 3.4%.<\/p>\n

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