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ida).  On average, throughout their terms each of them has

recommended annual tax hikes of more than 1.5 percent of

state spending per year.

The four governors who have brought down income tax

rates the most during their tenures are Branstad (Iowa), Pa-

taki (New York), Whitman (New Jersey), and Rowland (Con-

necticut).  However, income tax rates have also been reduced

under Carper (Delaware), Cayetano (Hawaii), Glendening

(Maryland), Engler (Michigan), Nelson (Nebraska), Johnson

(New Mexico), Hunt (North Carolina), Keating (Oklahoma), Al-

mond (Rhode Island), Leavitt (Utah), and Thompson (Wiscon-

sin).  Wilson (California) has had his proposals to cut in-

come tax rates stymied by the legislature.  Similarly, many

of the governors listed above have proposed larger income

tax rate reductions than their legislatures were willing to

approve.  Those tax rate reductions have typically led to an

increase in income tax revenue collections.

Meanwhile income tax rate increases have been enacted

under Voinovich (Ohio), Carnahan (Missouri), and Dean (Ver-

mont).  In North Dakota under Schafer and in Vermont under

Dean, residents saw their state rates go up in 1993 with the

Clinton tax hike, because in those states the personal in-

come tax is levied as a percentage of federal income tax li-

ability.  Wilson (California) also raised income tax rates

substantially in 1991--producing almost no new revenues;

however, that increase has now expired, and the top rate is

back down where it was when he took office.  There are signs

that this has helped propel an economic rebound in Califor-

nia.

The largest sales tax hikes were enacted or recommended

by Racicot (Montana), Branstad (Iowa), and Engler (Michi-

gan).  Racicot recommended giving Montanans a first-ever

state sales tax of 4 percent, but voters rejected it in a

referendum.  Engler's 2-cent sales tax increase was tied to

a sizable reduction in Michigan property taxes.  The package

was a $1 billion net tax cut for Michigan residents.  Bran-

stad also enacted a 2-cent sales tax hike.  The sales tax in

Mississippi was increased by 1 cent, but only after the leg

islature overrode Fordice's veto of that tax hike.  The only

governor to cut the sales tax was Leavitt (Utah).

Conclusion

The fiscal record of the current governors is a mixed

bag.  The governors have generally chopped punitive and

anti-growth income taxes on workers and businesses.  Much of

this is in response to the increasing tax competitiveness

among states--a competition that we view as quite healthy.

Interstate tax competition forces states to downsize their