States are increasingly choosing sides on income tax policy. The general national trend in recent years has been toward lower, flatter income tax systems, while a smaller number of states have moved in the other direction, toward higher top marginal rates.

Wisconsin is in the middle, pulled in both directions. The choice our leaders make about which path to follow will have important implications for the state’s future competitiveness and prosperity.

A recent Tax Foundation analysis, “The State Income Tax Divergence,” shows the scale of the shift. As of February 2026, 23 states had cut their top marginal individual income tax rates over the past five years, while six states and the District of Columbia have raised them. This month, another, Rhode Island, joined them, raising its top rate three percentage points to 8.99 percent.

The right call on income tax... click to continue reading...