The Economy & You #56 – Taxes – How Do We Rank?
WTA reviewed the tax figures for 2010 and compared tax burdens as a share of personal income. The results showed that Wisconsin ranked 9th highest of having taxes as a share of personal income. This is up from 14th in 2007. Wisconsin has been known historically as a high tax state. Wisconsin ranks in the top half of the majority of state-local taxes except for sales tax.
According to the data, this is how Wisconsin ranks among the 50 states:
Property Tax – 9th
Individual Income Tax – 12th
Sales Tax – 35th
Corporate Income Tax – 11th
Tobacco Tax – 3rd
Overall Tax Burden – 9th
When compared to other Midwestern states (IA, IL, MI, MN), Wisconsin ranks higher than every state in every category except two. Minnesota ranks higher than Wisconsin regarding individual income tax, and all states except Illinois outrank Wisconsin for General Sales Tax.
Still, this does not tell the whole story. States also receive revenue from charges for services and from the federal government. While the data would indicate that Wisconsin is in the top 10 regarding taxes as a percentage of personal income, if charges are factored into the calculation, Wisconsin’s rank would fall to 14th highest of percentage of tax burden because Wisconsin ranks 31st for charges that state and local governments assess their citizens.
Overall, state tax rankings have not changed much over the last few years. Alaska, New York, North Dakota, Vermont, and Wyoming have remained the five highest tax states in the country while Alabama, South Dakota and Tennessee have stayed near the bottom.
Another source of revenue for states is aid received from the federal government. Historically, Wisconsin does not fare well in receiving federal dollars and Wisconsin continues to be ranked in the bottom half of states that receive funds from Washington D.C. Still, Wisconsin did see an increase in federal aid from 2008 to 2010. Revenues increased over 46% in that period which is a large increase when one considers that federal aid was less than 3.6% of state revenue in 2008 and that percentage reached 5.2% in 2010.
We must remember that revenues are only one side of the budget equation. While Wisconsin ranks high for tax burden as a share of personal income, we also need to examine the spending side and what state-local spending takes as a percentage of personal income as well — an article for a future date.
Treasurer’s Top 5: Saint Croix County
Hudson, Saint Croix County
Courtesy: Hudson Area Chamber of Commerce and Area Tourism
This week, we travel to Saint Croix County. Here’s a look at the Top 5 people and businesses there with unclaimed assets. Do you see anyone on this list you know? If so, have check out www.wismissingmoney.com and search their name to make a claim. They can also call 855-375-CASH (2274)
Saint Croix County
IPE Corp
Ida Unell
John A Scott
Phoebe Jensch
Laverne and Grace Amundson
Related articles
- Treasurer’s Top 5: Manitowoc County (wistatetreasury.wordpress.com)
- Treasurer’s Top 5: Dunn County (wistatetreasury.wordpress.com)
- Treasurer’s Top 5: Lincoln County (wistatetreasury.wordpress.com)
Money Matters: Buying a Car
So…you want to buy a car and think you are ready. Have you made the proper plans or are you just going to march down to the dealer and sign a few papers? You think your negotiating skills are perfect and you can get a good deal?
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Money Matters: Going Through a Divorce
It is emotional, heart-wrenching, and energy draining. It also forces financial and lifestyle changes that impact everyone involved. For many people, divorce is the biggest financial transaction they face.
Even if you aren’t going through a divorce and are certain you will never have one, don’t stop reading.
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The Economy & You #54 – International Purchasing Power and the Big Mac
A central doctrine in economics states that goods should sell for the same price around the world after we adjust for exchange rates between national currencies, and the exchange rate between two countries should mirror the difference in price levels between those two countries.
To test this theory, we need to select a good that is sold in many places throughout the world such as a Big Mac. The idea is that the difference in price for a Big Mac in the U.S. and the price for a Big Mac in Norway should be approximately the same as the difference in the exchange rate between the U.S. Dollar and the Norwegian Kroner. The higher the price difference should coincide with a higher exchange rate.
Treasurer’s Top 5: Rusk County
Fall Colors, Rusk County
Courtesy: leafittoruskcounty.com
This week, we travel to Rusk County. Here’s a look at the Top 5 people and businesses there with unclaimed assets. Do you see anyone on this list you know? If so, have check out www.wismissingmoney.com and search their name to make a claim. They can also call 855-375-CASH (2274)
Rusk County
Lakeview Medical Center
Patricia McNair
Marie D Schaer
Robert T Nolan
Irene Beverly
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- Treasurer’s Top 5: Manitowoc County (wistatetreasury.wordpress.com)
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- Treasurer’s Top 5: Lincoln County (wistatetreasury.wordpress.com)
- Treasurer’s Top 5: Marathon County (wistatetreasury.wordpress.com)
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Money Matter: What Personal Financial Records Should You Keep?
Now that your taxes are filed and you are putting away the tons of paperwork you may have lying around, it’s time to start thinking about what is needed and what can be tossed…or shredded…make sure to shred.
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FAQ: What do the terms “Person”, “Indemnification” and “Date of Last Activity” mean?
A “Person” is any individual, business association, government or public subdivision, public corporation or authority, estate, trust, two or more persons having a joint or common interest, or any other legal or commerical entity.
“Indemnification” refers to the agreement that protects the Holder from loss by transferring the legal responsibilities for the unclaimed property to a third party, such as the state.
The “Date of Last Activity” is the date of the owner’s last activity related to the property or the owner’s contact with the Holder.
Related articles
- FAQ: What is “Unclaimed Property” (wistatetreasury.wordpress.com)
- FAQ: What does the State do to find unclaimed property owners? (wistatetreasury.wordpress.com)
- FAQ: How much unclaimed property is there, and why is the state involved? (wistatetreasury.wordpress.com)
- FAQ: I sent my claim form in quite a while ago. Why haven’t I received anything yet? (wistatetreasury.wordpress.com)
- FAQ: What happens to unclaimed property if the owner can’t be located? (wistatetreasury.wordpress.com)
- Nearly $40 Million Turned Over to State Treasury (wistatetreasury.wordpress.com)
The Economy & You #53: Can a Robot Save American Manufacturing?
There have been numerous articles talking about the future of American manufacturing and whether we as a nation will ever return to a position of dominance in the production of goods. Recently an article appeared in TIME Magazine that caught my eye. The article spoke about how the United States was, for the most part, an agricultural nation that saw most of its citizens working on farms. On those farms were various animals that helped with the planting and harvesting of crops. Today, those animals have been replaced by machines. The reason for this change was that workers left the farm to take higher paying manufacturing jobs in the city.
American manufacturing is going through a similar transition. While manufacturing employment was strong following World War II, the percentage of workers in manufacturing has declined since the 1970s to a level where only 9% of the labor force is in manufacturing today.
There are various arguments as to why U.S. manufacturing began its decline. One popular opinion is that American manufacturing jobs have been sent overseas to countries where the labor cost is considerably lower. The country seen as the prime example is China. According to the Bureau of Labor Statistics, manufacturing labor costs in China are 4% of the United States (2009 data, http://bls.gov/fls/home.htm). The United States has experienced a decline in manufacturing jobs while China has seen a large increase.
So how do robots factor into a resurgence of American manufacturing? While one may think that robots would only lead to further declines in manufacturing jobs, the idea of American manufacturers being able to utilize machines for simple repetitive tasks instead of employing low-cost foreign labor could help to make U.S. manufacturers more competitive, and keep their production operation in the United States.
Conventional robots take up significant time and resources for a manufacturer. They are expensive and often need to be cordoned off to keep human workers safe. In addition, conventional robots often take a full day to be programmed for a specific task. They are not overly adaptable.
The new robot, Baxter, can perform many simple tasks with minimal programming (around 45 minutes) by front-line employees instead of engineers. Almost anyone can be trained how to program the robot and if the Baxter completes one task it can be shown how to do another rather quickly. And at $22,000, the robot is very affordable. A video highlighting this adaptable robot is below.
The significance is that Baxter can perform simple and menial tasks that would often be performed by low wage labor, often in other countries. Robots, like Baxter, could help to erase the advantage that foreign countries have in performing simple, repetitive tasks, therefore allowing industries to manufacture their products competitively in the U.S.
Before Baxter, it was easier and cheaper to use human labor than make automation more flexible. Now small manufacturers will be able to increase efficiency and productivity, making them more competitive in the global marketplace. This can help to drive job creation and improve the economy. So while many have believed that robots would be the end of American manufacturing, they just may be the savior.
Related articles
- Humanoid Robot to Revolutionize U.S. Manufacturing (theepochtimes.com)
- Will Baxter be the Model T of the robotics industry? (nextbigfuture.com)
- Rethink Robotics Unveils Baxter : The Humanoid Robot That Can Think And Work Like You (thetechnologycafe.com)
- Rethink Robotics unveils ‘human-like’ robot for U.S. manufacturers (bizjournals.com)
- Rethink robotics reveals its revolutionary Baxter Manufacturing Robot (nextbigfuture.com)
- Meet Baxter: A Robot With Common Sense [VIDEO] (mashable.com)
- Part 1: Future Of Robotics: Manufacturing Gets A Makeover With Baxter (forbes.com)
Treasurer’s Top 5: Richland County
Fall Colors, Richland County
Courtesy: shunpikingtoheaven.com
This week, we travel to Richland County. Here’s a look at the Top 5 people and businesses there with unclaimed assets. Do you see anyone on this list you know? If so, have check out www.wismissingmoney.com and search their name to make a claim. They can also call 855-375-CASH (2274)
Richland County
Hardees
Herman Hoverlsrud
Bernard Besch
Clara Casey
Alan Schwartzstein
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Money Matters: How to Prevent Top 5 Financial Regrets, Not Saving for Retirement #5
This post is from our friends at Learnvest.com and offers a great deal of information on how to avoid the top 5 Financial Regrets. This week, We focus on NoT Saving Enough for Retirement. The past four weeks, we examined Habitually Overspending, Inadequately Saving, Buying a House, and NOT Buying a House. That brings us to the final of the Top 5 Financial Regrets:
- Habitually Overspending
- Inadequately saving
- Buying a house
- Not buying a house
- Not saving enough for retirement
When reading through these regrets and solutions, make sure to keep in mind what’s right for you in your situation. People are different.
5. Not Saving Enough for Retirement
No matter how far (or near) your retirement is, if you intend to maintain your current standard of living without bringing home a salary, you’ll need the funds to cover your living and entertainment expenses, not to mention medical or family emergencies, which become more common as we grow older. The easiest way to have that money when you need it? Start putting it away NOW.
How much should you allocate to this goal? About 20% of your salary should go toward your financial priorities, which include retirement, debt payment and other savings.
How to Keep It From Happening: Save, save, save. We cover the basics of what you need to know about 401(ks), IRAs and more here, and for more information we have an entire section of the Knowledge Center devoted to retirement. Not sure where to start? Begin with our checklist: I Want to Save for Retirement, which will walk you through everything you need step by step.
Here’s to no more regrets.
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Why We Ask For Your Social Security Number
We had an unscientific poll yesterday asking about attitudes towards giving your social security number online. It’s important to understand why we here at the State Treasury need your social security number.
For almost every financial transaction you have ever been a part of, whether it’s opening up a checking account, renting an apartment and starting utilities, getting insurance or buying stocks or bonds, you had to give your social security number. If these businesses (we call them Holders) returned money to you and you never cashed the check, they turned that money over to us with all your information…including your social security number.
When we ask for your social security number, it’s for us to verify that you are the person that is owed the money we are holding. We already have your social security number in our system…you are just letting us know that you are who you say you are! This is why our Fast track option is so wonderful! When you input your social
security number into the system, and your claim is $2,000 or less, the system instantly verifies it is you, approves your claim and sends you a check 10 days later!
Now…let’s say the Holder didn’t report a social security number to our office with your abandoned “property”. By entering your social security number our claims specialists can search for all your past addresses using software we have in the office. If the social security number you provide matches the address provided by the Holder, we know the money is yours and send you the check.
Understandably, you should be weary of giving out your social security to anyone. But, rest assured, entering it on our website or giving it to us on your written claim is completely safe.
FAQ: Who can contribute to an EdVest account, and how much?
Anyone can contribute to the account, and only the account owner has control over how the assets are used.
Now onto how much can be invested. Before we go too far, their is a minimum investment of $250 to open an EdVest account. However if you set up an Automatic Investment Plan for at least $15 per month the $250 fee is waived.
Also you can contribute as much money to an EdVest account as you would like, just keep in mind that you may need to consider the gift tax for contributions over $13,000 ($65,000 if pro-rated over five years).
Note: There is a program maximum of $330,000 for the combined balance of all accounts for a single beneficiary. The good news is that even though you cannot contribute any more money to an account that has reached the limit it may continue to grow.
Related articles
- EdVest Changes Make Saving for College Easier (wistatetreasury.wordpress.com)
- College Savings Month – Investing in EdVest (wistatetreasury.wordpress.com)
- FAQ: What are the WI State benefits with EdVest? (wistatetreasury.wordpress.com)
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Treasurer’s Top 5: Price County
Price County Courthouse, Phillips Wi
Courtesy: Superiorlawonline.com
This week, we travel to Price County. Here’s a look at the Top 5 people and businesses there with unclaimed assets. Do you see anyone on this list you know? If so, have check out www.wismissingmoney.com and search their name to make a claim. They can also call 855-375-CASH (2274)
Price County
Alice Jensen
Robert H Meyer
Clarence Boomgard
William Dunn
George Baran
Related articles
- Treasurer’s Top 5: Manitowoc County (wistatetreasury.wordpress.com)
- Treasurer’s Top 5: Dunn County (wistatetreasury.wordpress.com)
- Treasurer’s Top 5: Lincoln County (wistatetreasury.wordpress.com)
- Treasurer’s Top 5: Marathon County (wistatetreasury.wordpress.com)
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Money Matters: How to Prevent Top 5 Financial Regrets, NOT Buying a House #4
This post is from our friends at Learnvest.com and offers a great deal of information on how to avoid the top 5 Financial Regrets. This week, We focus on NOT Buying a House. The past three weeks, we examined Habitually Overspending, Inadequately Saving, and Buying a House. Next week, we will take a close look at the final of the Top 5 Financial Regrets.
- Habitually Overspending
- Inadequately saving
- Buying a house
- Not buying a house
- Not saving enough for retirement
When reading through these regrets and solutions, make sure to keep in mind what’s right for you in your situation. People are different.
3. Not Buying a House
There are a lot of reasons we might not buy a house. Maybe you don’t know where you want to settle down. Maybe you want to wait until you have a family. Maybe you just don’t have that kind of cash on hand. But here’s the tricky thing about this particular regret: Unlike saving inadequately, which everyone would regret, not buying a home is actually the right move for many people.
How to Keep It From Happening: To keep from regretting not buying a house, you need to buy only when it makes sense for you. If you can say yes to the following questions, then it could be the right move:
- Do you have enough saved up to not only make a down payment but also leave your emergency fund and retirement savings intact?
- Do you plan to live in the house for at least five years, so you’ll be able to recoup your moving investment?
- In the area where you want to buy, is your price-to-rent ratio more in favor of buying?
For more information on buying a home, see the loans and mortgages section of The Knowledge Center.
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- Consumers regret not saving (bankrate.com)
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