Tiffany Proposed Eliminating Income Tax in Wisconsin

Gubernatorial candidate Tom Tiffany pledged to remove personal income taxes if elected to the state's highest office.

Updated on Oct. 9, 2026 in Taxes

Tiffany Proposed Eliminating Income Tax in Wisconsin

Live Poll

Do you support eliminating personal income tax if it results in higher sales taxes?

Wisconsin gubernatorial candidate Tom Tiffany announced his intent to eliminate the state personal income tax during a recent campaign stop. The proposal aims to remove the tax burden on residents, though it would require significant shifts in state government revenue collection.

Why it matters

Eliminating personal income tax requires balancing massive budget gaps through substantial sales tax hikes or deep cuts to public services. Maintaining a stable budget typically requires a combination of income, property, and sales tax revenue streams.

Removing personal income tax could create a $9 billion budget gap and require a 6.7% increase in the current 5% state sales tax. Alternatively, eliminating property taxes could remove $14 billion from local budgets, necessitating an 8.7% sales tax hike.

The players

Tom Tiffany

He is a candidate for governor of Wisconsin who has centered his campaign on significant tax reform.

Badger Institute

This Milwaukee-based think tank conducts research on Wisconsin state government policy and economic issues.

The details

The Badger Institute analysis warns that similar experiments, such as those in Kansas, led to a $900 million budget deficit following tax cuts. Other states like Tennessee currently operate without an income tax by relying on high sales tax revenue and grocery taxes.

The Badger Institute released its tax study in September 2024.
Tom Tiffany discussed his tax proposal during a late September 2026 campaign stop.
Missouri voters will decide on a personal income tax phase-out on November 3, 2026.

Market Landscape

The proposal follows the fiscal path taken by the Kansas income tax repeal experiment, which resulted in a $900 million budget deficit. This approach positions the candidate against traditional revenue models that prioritize balancing income, property, and sales tax streams.

Residents could see a significant rise in state sales taxes to compensate for the lost income tax revenue. These changes would directly alter the monthly household budget and cost of goods for shoppers across the state.

The takeaway

Tax elimination proposals often shift the burden of government funding from income earners to consumers through higher sales tax rates. Voters in states considering these measures must weigh the immediate benefit of lower income taxes against the potential for reduced public services or increased costs at the register.