Tax Freedom Day already occurred in 40 states, but Wisconsinites could not start celebrating until today.

The holiday signals the proportion of the year when peoples' federal, state and local taxes have been worked off, and they "keep" the rest of their income. William Ahern, director of communications for the Tax Foundation, said Tax Freedom Day is determined in each state as a "calendar-based illustration" of a percentage.

"April 19 is 29.8 percent of the year," Ahern said. "That means in Wisconsin, citizens are just a hair under 30 percent of their total income going to all levels of government."

The Tax Foundation's April 11 report detailed tax levels for each state. Wisconsin's April 19 Tax Freedom Day is two days later than the national average.

States celebrate Tax Freedom Day on different days depending on how much they are taxed by all levels of government. Ahern said 18.4 percent of Wisconsin's tax burden goes to the federal government, making it the 24th highest state.

"You're not really all that heavily taxed at the federal level," Ahern said. "At the state and local level, 11.4 percent of your income this year goes to taxes. That's the fifth highest in the country."

Combining federal, state and local taxes, the report found Wisconsin is the 10th highest taxed state.

Economists are concerned about Wisconsin's comparatively high tax rate.

Jim Pugh, spokesman for Wisconsin Manufacturers & Commerce, said the state government spends more than surrounding states.

"We're a high-taxing, high-spending state where people earn reasonably average wages," he said. "The government's appetite for spending outstrips the taxpayers' ability to pay."

High taxes have led to a "brain drain" in Wisconsin, according to Pugh. Young professionals, such as recent college graduates, often leave the state and move to its lower-taxing neighbors.

"Our most talented individuals seek employment in other states because they can make more money and be more prosperous," Pugh said. "This will lead to a stagnating population that demands more services from the government and not enough people paying them."

William Hunter, an associate professor of finance, said Wisconsin taxes have been high historically. He said high taxes are likely responsible for the small percentage of companies headquartered in the state relative to its size and an underrepresented population making more than $200,000.

Some life-long Wisconsin residents think taxes are just as high everywhere, according to Hunter.

"Wisconsinites who've lived here for generations don't see it as a big deal. People who move here come in and are just shocked. They come here and get educated and then leave," he said.

People leaving Wisconsin would find lighter local tax burdens in every surrounding state, according to the report. Compared with 11.4 percent of a Wisconsinite's income going to state and local taxes, Minnesota residents pay 10.7 percent, Iowa residents pay 10 percent and Illinois residents pay 9.8 percent.

But Ahern said Wisconsin's state and local tax burden has been falling since at least 2001. State and local taxes claimed 11.8 percent of income in 2001, 11.6 percent in 2002 and 11.5 percent in 2004.

This article appeared in The Marquette Tribune on April 19 2005.