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View Full Version : Look who's raising taxes: Republican-run states




zimv20
May 18, 2004, 11:06 AM
link (http://story.news.yahoo.com/news?tmpl=story&cid=679&e=17&u=/usatoday/lookwhosraisingtaxesrepublicanrunstates)


When Virginia's legislature voted last month to raise taxes by $1.5 billion to fund spending on education, roads and other needs, Republicans who see tax cutting as the party's binding issue were dismayed. The tax hike had been approved by a Republican-controlled legislature with a tradition of fiscal conservatism. More remarkable: It was $360 million more than Democratic Gov. Mark Warner had requested.

Virginia reflects a nationwide trend. The Republican Party, long the champion of less government and low taxes, has backed large boosts in spending and taxes in many states where the GOP controls the legislature, the governor's mansion or both. On average, the largest spending increases from 1997 through 2002 occurred in states where Republicans controlled both branches, according to a 2003 analysis by USA TODAY.

The trend appears broad enough to ask whether the country's two-decade entrancement with tax cuts may be easing.

Politically, Virginia's legislators had little choice. For years, politicians of both parties ignored warnings that explosive population growth in parts of the state - notably its Washington suburbs - would lead to gridlock. It did. At the same time, the public, particularly the business community, began demanding more spending for education.

Squeezed on one side by angry constituents and on the other by constitutional requirements to balance budgets, Virginia Republicans did the right thing: They made a decision, and they paid for it.

The Bush administration - now under pressure from fiscally conservative Republicans in Congress to pay for its burgeoning deficit with spending cuts - could learn from the experience.

Bush has pushed tax cuts and accepted sharply higher spending, indulging a something-for-nothing fantasy the nation can ill-afford. This year's deficit, now nearing $500 billion, would require more than $1,500 of borrowing for every person in the country. That's not free money. It's paid in inflationary pressure, risk to retiring baby boomers and debt handed to our children.

States, facing balanced-budget requirements that Washington lacks, have no such luxury. The surprise is that the political terrain has shifted enough that more spending is the solution. Some recent examples:

Ohi o. Spending in the Buckeye state has risen 71% during the past decade, when Republicans have controlled both the governor's office and the legislature. To fund this spending, Republican Gov. Bob Taft, backed by the GOP legislature, has increased the sales tax by 20%, upped the gasoline tax by two cents a gallon and increased numerous small business fees.

Idaho. Spending is up more than 60% in the past decade, mainly under GOP rule. Last year, Republican Gov. Dirk Kempthorne sought a sales tax increase. He asked the GOP-controlled legislature to raise the tax from 5% to 6.5%. He settled for 6%.

Georgia. In 2003, less than 24 hours after becoming the state's first Republican governor in more than a century, Sonny Purdue proposed hiking taxes by about $762 million to close a budget gap.

Republicans argue that GOP advocates of higher taxes and spending are few. That's nothing to boast about if the alternative is fiscal irresponsibility.



mactastic
May 18, 2004, 11:14 AM
Yeah states don't typically have the luxury of being able to run a deficit. So your federal tax rebate that looked so nice goes right back to the state government through you rather than directly. Doesn't it feel good to hold that money for a little while and remind yourself that if the tax'n'spend liberals were in power that you'd have to give that money back... right before you give it back.

Neserk
May 18, 2004, 11:28 AM
CA will be next. Going to have to be.

Desertrat
May 18, 2004, 03:14 PM
Well, if folks want goodies from government, they gotta pay taxes, and as mac said, most states can't run deficits. State employees need pay raises, too, from time to time. And, of course, more programs mean more employees.

As far as Republicans being the present set of tax-raisers, I'm purely guessing that prior rate increases already in place (regardless of party) provided a few years of cushion. But, sooner or later, rising costs play that nasty game of CatchUp, popping the whoopie cushion.

I guess I'd add that it looks like the Repubes have learned the Demgame of buying votes. I'm curious to see how the bribing of us Old Farts with nearly-free pills and potions plays out in Florida's Geriatric Sector. After all, Gore played the same game, there, in 2000 in his Tallahassee speech.

By the bye, has anybody noted the difference between the Consumer Price Index and reality? And considered what that means as regards overhead? Gummint has overhead as well as does the private sector. Aside from rent, utilities and salaries, they gotta gas up all those cars they use to drive 20mph over the speed limit. :) Hard to keep up with a Border Patrol SUV when he's headed for coffee...

'Rat