MADISON, Wis. (AP) – Thirteen cents of every dollar earned by Maine residents goes to state and local taxes, according to a report released Thursday. The state’s tax burden is eclipsed only by New York and Wyoming, the report said.

The findings were released by the Wisconsin Taxpayers Alliance.

The report shows that government debt in Wisconsin increased 38 percent between 2000 and 2004, a rate higher than inflation or personal income. At the same time state and local government debt was going up, the state’s overall tax burden remained one of the highest in the nation.

Taxes collected by Wisconsin state and local government were 12.2 percent of personal income in 2004, placing the state sixth highest in tax burden, according to the report.

New York ranked highest at 14.7 percent, followed by Wyoming at 13.9 percent, Maine at 13.4 percent, Hawaii at 12.6 percent and Vermont at 12.2 percent.

Neighboring states all had lower tax burdens that were at least a full percentage point less: Minnesota, 11.2 percent; Iowa, 10.7 percent; Illinois, 10.6 percent; and Michigan, 10.5 percent.

While Wisconsin’s tax burden ranked sixth in 2004, it was down from a decade ago when it ranked third, the report said.

Major taxes for individuals in Wisconsin are on income, sales and property. As a share of income, Wisconsin’s taxes were 10.4 percent above the national average, the report said.

The report, which utilized Census data information, found that government debt’s increase of 38 percent from 2000 to 2004 was higher than inflation (10.4 percent) and personal income (16 percent).

From 1994 to 2004, the state’s 103 percent increase in debt was 12th highest nationally, the report said.

When state lawmakers reconvene in January they will be faced with addressing a projected $2.6 billion shortfall because revenues won’t cover spending requests.

Any growth in tax revenues would help decrease that gap.

On the Net:

Wisconsin Taxpayers Alliance:

AP-ES-08-03-06 1948EDT

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