Patrick Fleenor and Scott A. Hodge:

One of the biggest obstacles facing President Bush’s Advisory Panel on Federal Tax Reform is the fact that America has become divided between a growing class of people who pay no income taxes and a shrinking class of people who are bearing the lion’s share of the burden.
Despite the charges of critics that the tax cuts enacted in 2001, 2003 and 2004 favored the “rich,” these cuts actually reduced the tax burden of low- and middle-income taxpayers and shifted the tax burden onto wealthier taxpayers. Tax Foundation economists estimate that for tax year 2004, a record 42.5 million Americans who filed a tax return (one-third of the 131 million returns filed last year) had no tax liability after they took advantage of their credits and deductions. Millions more paid next to nothing.

AP:

A new study shows Milwaukee residents are way behind their neighbors when it comes to taxable property values, prompting some officials to urge wealthy suburbs to share their tax revenues in exchange for their use of city services.
The Southeastern Wisconsin Regional Planning Commission ordered the study from consulting firm Ruekert & Mielke Inc. to analyze 147 cities, towns and villages in the counties of Milwaukee, Waukesha, Ozaukee, Washington, Racine, Kenosha and Walworth.
The study released last week shows that Chenequa in Waukesha County boasts the top “fiscal capacity” rate, a measure of property value per resident, of $600,570, while Milwaukee ranks at the bottom with a rate of $36,507.

Former Madison Mayor Paul Soglin mentioned this strategy as well – tax ’em while they are driving in.