[media-credit name=’JEFF SCHORFHEIDE/Herald photo’ align=’alignnone’ width=’648′][/media-credit]Defending Gov. Jim Doyle's proposed $1.7 billion in new taxes and fees, Department of Revenue Secretary Roger M. Ervin testified before the state Legislature's budget committee Wednesday.

Republican members of Joint Finance Committee repeatedly criticized Doyle's proposal to double the annual property tax levy to 4 percent. For most of the day, Ervin had the microphone.

"We're trying to give [communities] the flexibility in places they need it, while also limiting other areas," Ervin said. "What we're doing is trying to put forward a balanced approach."

Ervin said the increase — which gives local governments the option to raise property taxes by 4 percent — would help municipalities address their own budget concerns.

Doyle and the Legislature gave municipalities the power to raise property taxes by 2 percent last year or by the growth in new construction, whichever was greater. The levy expired Jan. 1.

"To work under those levy limits is extremely difficult, if not impossible," said Ervin, who was backed by Democratic members of the committee.

However, Rep. Dan Meyer, R-Eagle River, said he was concerned with the idea of raising the tax, noting that higher taxes do not necessarily mean "higher quality."

"It may be a benefit to some places, but I'm afraid it's not going to benefit my area," Meyer said.

Eight Democrats and eight Republicans sit on the Joint Finance Committee, which is composed of members from both legislative bodies. Some lawmakers have called the committee one of the most powerful in the country since all bills with financial implications — including the state budget — must be approved by the group first.

Republican members led the debate with Ervin Wednesday morning. They also attacked proposed taxes on oil companies, tobacco and electronic goods.

"Generally, when somebody produces an item and sells an item, there's a tax on it unless it's exempt," Ervin said about extending the state's 5 percent sales tax to most electronic goods including music downloads. "This is creating a situation where everyone is paying the same tax."

According to an analysis by the nonpartisan Legislative Fiscal Bureau, the new tax on digital goods could generate $6.3 million over the biennium. Taxpayers would be required by law to claim online purchases on their state income tax returns.

While lawmakers focused on several hot-button tax increases, more of the discussion Wednesday turned into an debate of Wisconsin's tax burden and its rank nationwide. Republicans argued that Wisconsin is a high-tax state, whereas Ervin said he estimates its ranking is average among states.

State and nonpartisan reports have showed mixed results depending on the research conducted.