Wisconsin has the fifth highest state and local taxes in the country, according to a recent report released by the Tax Foundation, a nonprofit group that tracks government finances.

This high tax rate is a real problem for Wisconsin residents, according to Jim Pugh, director of public relations for Wisconsin Manufacturers and Commerce, a nonprofit association that represents Wisconsin businesses.

"A high tax burden puts undue pressure on families and makes it harder to make ends meet," Pugh said.

He said some households in Wisconsin have one person to pay the family bills and another member of the household working just to pay the tax bills.

"The trend (of high taxes) began in the 1960s and was exacerbated during the 1980s, as people started to earn more money," Pugh said, "there are no checks in the system, and we feel changes need to take place."

The group is proposing a taxpayer bill of rights that would aim to reduce the tax burden on Wisconsin residents.

Among the things the bill of rights would do is set a concrete limit on government spending and taxation; a referendum would be needed if governments wanted to exceed these limits.

"We would like to cap government spending, and if state or local governments want to go over those limits, they would have to ask the people in the form of a referendum," Pugh said.

He said the proposal would also include a "rainy day fund" which would allow the government to provide for certain services when the economy is slow.

The group expects the taxpayer bill of rights to go before the state Assembly for initial consideration sometime after July, according to Pugh.

Because Marquette is classified as a charitable tax-exempt institution of higher education, it does not have to pay some taxes, according to Steve Cottingham, assistant senior vice president.

"Because of our university status, we pay very little property tax on the land we own," Cottingham said.

Marquette is also exempt from paying taxes on the income it generates from tuition, according to Cottingham.

At the end of the year, any surplus money the university has generated from tuition payments is not subject to taxation, according to Cottingham.

He said the taxes Marquette does have to pay have very little effect on students.

"Taxes that are paid are very minimal and have no material impact on tuition rates or the overall university budget," Cottingham said.

Pugh said if we do not do something to lower the tax burden in Wisconsin, there could be real implications for the next generation, including a reduced workforce.

"People are not going to want to move here when they have to pay so much in taxes. It could lead to a real labor shortage in the future," Pugh said.

He said as Wisconsin's aging population retires, there will be less people to fill those positions, which creates problems for both attracting and maintaining businesses in the state.

The state is becoming "unattractive" to people who are looking for places to start their own businesses and to young couples who are looking for places to start families, Pugh said.

It is becoming hard to attract younger people to the state when they can live elsewhere and pay less money in taxes.

"In the future Wisconsin is going to turn into a nursing home if something is not done to attract new faces and younger people into the state," Pugh said.

The four states with the highest tax burdens are Maine, New York, Hawaii and Rhode Island. Last on the list was Alaska, according to the Tax Foundation's report, which was released April 11.

This article appeared in The Marquette Tribune on April 21 2005.