Indiana
Mitch Daniels, Republican
Legislature: Divided
Grade: B
Took Office: January 2005
Mitch Daniels served as President George
his second year, he proposed a tax increase on
W. Bush's first budget director. Daniels was a
cigarette smokers, which was enacted in 2007.
fiscally conservative voice in the White
More recently, Daniels supported a tax over-
House, and he has tried to restrain spending
haul that swapped a one percentage point
in Indiana's budget. He has proposed, and
increase in the state sales tax rate for local
the legislature has passed, general fund bud-
property tax relief. While the plan delivers an
gets with low growth rates. But Daniels has
overall tax cut of about $700 million annual-
been less of a fiscal conservative on tax policy.
ly, it may lead to larger government in the
In his first year in office, he proposed a tem-
long run by reducing tax competition
porary increase in the top income tax rate. In
between local jurisdictions.
Sebelius has
supported an
impressive list of
Iowa
business tax cuts.
Chet Culver, Democrat
Legislature: Democratic
Grade: F
Took Office: January 2007
Chet Culver campaigned on a plan to
has gone after businesses with a large corporate
increase the state's cigarette tax, and he followed
tax increase in the form of tax base broadening.
through on that threat in 2007, with the effect
On spending, Culver's performance has been
of draining the wallets of Iowa smokers by
equally poor, proposing increases in per capita
about $140 million annually. This year, Culver
spending averaging 8 percent annually.
Kansas
Kathleen Sebelius, Democrat
Legislature: Republican
Grade: D
Took Office: January 2003
pensation taxes, and business property taxes.
Kathleen Sebelius has supported tax
She has also supported repeal of the estate
increases during her tenure, but she has also
tax and repeal of the corporate franchise tax,
supported a number of pro-growth tax cuts.
which is being phased out by 2011. With
In 2004, she proposed a temporary increase
these cuts, the governor has made Kansas
in the sales tax rate that has turned out to be
more attractive for business investment. It is
permanent, and more recently she has sup-
on spending where Sebelius dragged down
ported cigarette tax increases. However,
her grade by presiding over per capita budget
Sebelius has also supported an impressive list
of business tax cuts, including reductions in
increases averaging about 7 percent annually
corporate income taxes, unemployment com-
since 2003.
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