Rhode Island
Donald Carcieri, Republican
Legislature: Democratic
Grade: B
Took Office: January 2003
Governor Carcieri has supported both tax
2012. The governor has also cut motor vehicle
increases and cuts during his tenure. In his first
taxes and signed into law a reduced cap for the
few years in office, he supported a series of ciga-
allowable annual growth rate of property taxes.
rette tax increases. In 2006, however, he signed
Carcieri has also vetoed numerous tax increases
into law a tax cut plan that created an optional
passed by the legislature. On spending, Carcieri's
flat income tax. Rhode Islanders can now pay
proposed budgets have been restrained. In the
income tax under the regular system with a top
last couple years, large budget gaps have devel-
rate of 9.9 percent, or they can take fewer deduc-
oped, but Carcieri has held the line on taxes and
tions and pay at a flat rate of 7.0 percent. That
proposed program cuts and reductions in state
flat rate is scheduled to fall to 5.5 percent by
employee costs.
South Carolina
Mark Sanford, Republican
Legislature: Republican
Grade: A
Took Office: January 2003
Mark Sanford is a consistent advocate of
optional 3.4 percent flat tax. In response, the
spending restraint and pro-growth tax cuts. In
legislature proposed a large cigarette tax hike
2004, he proposed cutting the top personal
without an offsetting tax cut, and Sanford
income tax rate from 7.0 percent to 4.75 per-
vetoed it.
cent. In 2005, the legislature agreed to go half-
On spending, Sanford's proposed budgets
way and cut the top income tax rate for small
have been quite frugal, and he has vetoed hun-
businesses from 7 percent to 5 percent. In
dreds of costly bills. Unfortunately, the legisla-
2006, the governor and legislature agreed to
ture has overridden many of Sanford's vetoes,
raise the sales tax rate in a swap for cuts to
and actual state spending has risen faster than
property taxes and sales taxes on groceries. In
he would have liked. To help solve the over-
2007 Sanford signed into law substantial cuts
spending problem, Sanford has pushed for the
to sales and income taxes. This year, Sanford
state to adopt a cap on the budget to limit annu-
has proposed swapping higher cigarette taxes
al growth to inflation plus increases in popula-
for cuts to income taxes by means of an
tion, but that reform has not yet been adopted.
Sanford has
South Dakota
pushed for the
state to adopt a
Mike Rounds, Republican
Legislature: Republican
cap on the budget
Grade: C
Took Office: January 2003
to limit annual
increases for cigarettes, alcohol, and tele-
South Dakota is blessed with one of the
growth to
phone service. With support from the gover-
lowest state tax burdens in the country, and it
inflation plus
nor, state voters approved another cigarette
does not have an income tax. Governor
tax increase in 2006. Rounds has done better
Rounds has supported some tax increases,
increases in
on spending, proposing fairly frugal budgets
but not enough to undo the state's low-tax
population.
standing. In 2003, the governor proposed tax
in most years.
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