Report: Out-migration cost Wisconsin $3.5 billion in taxes since 2015

(The Center Square) – There’s now a pierce tag for the people who have moved out of Wisconsin.

The Institute for Reforming Government released a report that says out-migration over the past decade has cost the state $3.5 billion in lost revenue.

"Over the last 10 years, more than 900,000 filers have left the state, most of them moving to states with a flat or no income tax, taking more than $37 billion in income with them," the report stated. "That lost income means lost tax revenue, too. Wisconsin missed out on more than $400 million in state and local tax revenue in 2023 alone, and more than $3.5 billion over the past decade."

IRG added that 88,000 people left Wisconsin in 2023 alone. The report notes that’s as many people as Dodge County.

IRG not only calculated the totals in lost income and lost tax revenue, but the report used IRS data to see where people moved to.

"This data shows the Wisconsin economy is missing out on billions of dollars because of its undesirable tax climate. This money should be spent shopping at Wisconsin businesses, eating at local restaurants, and donating to Wisconsin charities but is instead spent stimulating the economies of Florida, Texas, and other states with friendly income tax climates," the report's authors wrote.

"Wisconsin families and job creators are voting with their feet. Wisconsin can't out-tax its neighbors and expect people to stay," IRG Deputy Director of Policy & Reform Maryjane Behm said. “It’s clear Wisconsin is losing residents to states that let the taxpayers keep more of their own money.”

Over the past 10 years, the numbers show Wisconsin lost the most people to Illinois. But Florida, Texas, Tennessee, and both North and South Carolina, also saw Wisconsinites move-in.

The report is likely to become a part of the governor’s race in the state.

The out-migration numbers, and the loss in potential tax revenue, all happened before Gov. Tony Evers’ 400-year tax increase began in earnest, and before the Wisconsin Supreme Court has decided on the future of Act-10.

The report warned that if taxes rise because of the 400-year veto or the end of Act-10, Wisconsin could lose more people.

“Policymakers need to focus more on how to prevent talent from leaving, starting with creating a friendlier income tax environment,” the report noted.

This story originally appeared on thecentersquare.com.