Cato Institute
Policy Analysis
<<  <  >  >>
o
Maine
John Baldacci, Democrat
Legislature: Democratic
Grade: B
Took Office: January 2003
Residents of Maine face one of the highest
the governor has supported substantial tax
state tax burdens in the nation. Thus Governor
increases on health providers and on consumers
Baldacci's efforts to cut property taxes on home-
of tobacco and alcohol. On spending, Baldacci
owners and get rid of an uncompetitive proper-
has a good record, although he supported large
ty tax on business equipment were much need-
spending increases on his Dirigo health care
ed. He also proposed recently to reduce the
plan, and he opposed a referendum in 2006 to
state's top personal income tax rate. However,
put a legal cap on state budget growth.
Maryland
Martin O'Malley, Democrat
Legislature: Democratic
Grade: F
Took Office: January 2007
Governor O'Malley became a champion
tax base, a doubling of the cigarette tax rate,
tax hiker with the enactment of a $1.4 billion
and higher taxes on vehicles. This enormous
tax package in 2007. It included an increase in
increase will hit Marylanders directly in the
the corporate tax rate from 7 percent to 8.25
pocketbook, and indirectly through slower
percent, an increase in the top personal
economic growth over time. Part of the tax
income tax rate from 4.75 percent to 5.5 per-
bill--a sales tax hike on computer services--
cent, an increase in the sales tax rate from 5
was later repealed and the revenue replaced
percent to 6 percent, an expansion of the sales
by a new top income tax rate of 6.25 percent.
Massachusetts
Deval Patrick, Democrat
Legislature: Democratic
Grade: C
Took Office: January 2007
plan will raise a net $165 million annually.
Governor Patrick has focused on business tax
Patrick also signed into law a $1 per pack tax
changes in his first year and a half in office. In
increase on cigarette consumers, which will raise
2008, he signed into law a corporate tax bill that
$175 million annually. The good news for resi-
substantially widened the tax base but also
dents of Massachusetts is that Patrick's spend-
phased in a small cut to the corporate tax rate.
When the full rate cut is in place in 2012, the
ing record is better than his tax record so far.
Governor
O'Malley became
Michigan
a champion tax
hiker with the
Jennifer Granholm, Democrat
Legislature: Divided
enactment of a
Grade: D
Took Office: January 2003
$1.4 billion tax
her tax increases have not helped matters. The
Governor Granholm has presided over one
package in 2007.
of the slowest growing states in the nation, and
biggest tax change in recent years was to the
17