Wisconsin's Economic Freedom Reforms Boost Growth, Per Badger Institute Analysis

Wisconsin's market-oriented policy reforms launched in the early 2010s have positioned the state as an economic leader, according to analysis from the Badger Institute. The changes—including Act 10 labor reforms, right-to-work legislation, and targeted tax credits—lifted Wisconsin from near the bottom of national economic freedom rankings into the second quintile, where it remains today.[1]

The reforms produced measurable results when compared to neighboring states. Border county analysis shows Wisconsin's economy outpaced Illinois and Minnesota, both of which maintain lower economic freedom rankings.[1] Wisconsin also attracted and retained working-age and higher-income taxpayers at stronger rates than these neighbors since the reform era began.[1] The state's tax burden has dropped significantly, falling from 11.2% of personal income in 2011 to 9.9% today, marking what analysts call a "new milestone for frugality."[4]

For Milwaukee residents and taxpayers statewide, these reforms delivered substantial savings. Act 10 alone has saved Wisconsin between $18 billion and $31 billion since 2012 by requiring public employees to contribute toward their pensions and health insurance, similar to private-sector workers.[4] School districts reported dramatic savings—Kenosha Unified, for example, saved at least $13 million by switching health insurers after Act 10 took effect.[4] The manufacturing and agriculture tax credit reduced effective tax rates on those sectors to just 0.4%, spurring investment in key industries.[1]

However, the gains remain fragile. Recent proposals in Madison include rolling back the manufacturing tax credit, repealing Act 10, and eliminating right-to-work protections.[1] As lawmakers face these decisions, Wisconsin's continued economic trajectory depends on whether policymakers maintain these market-oriented reforms or return to the higher-tax, government-centered approach that characterized the state before 2010.