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North Dakota

John Hoeven, Republican

Legislature: Republican

Midterm Grade: C

nomic growth: lower taxes. His main deviation

Governor Hoeven's grade has started to

from this is the recent 2-cent increase in the

flag. He earned a B for his first term mainly on

gas tax. What's hurting his grade the most are

the strength of his cuts in the corporate tax

large increases in the state budget. General

rate--from a 10.5 percent top rate (one of the

fund spending has grown an average of more

highest in the nation at the time) to 7 percent.

than 4 percentage points in real per capita

The high point of Hoeven's second term so far

terms during the last two years. The legislature

is his move to cut the corporate income tax by

was a little less eager to cater to the governor's

another half point. Hoeven still has a pen-

big-spending tendencies during the economic

chant for corporate welfare boondoggles, like

recession. Now that the fiscal picture looks

a government-run venture capital fund and

better, it is happy to rubber-stamp many of his

his $100 million "Smart Growth" initiative,

increases. In order for Hoeven to get a better

which hands out taxpayer money to ethanol

grade on the next report card, he'll have to get

producers. But it's obvious he has mostly

his big-spending tendencies under control.

learned what North Dakota needs to spur eco-

Ohio

Bob Taft, Republican

Legislature: Republican

Final-Term Grade: C

Final Overall Grade: F

fuel taxes and alcohol taxes were also on the

Bob Taft leaves office scarred by scandal

menu. In addition, the plan would cut the

and one of the worst fiscal records in America.

sales tax rate to 5.5 percent, which amounted

In 2001 Taft proposed a $465 million, two-

to a tax hike since the sales tax rate was sup-

year tax hike, mainly on businesses--he got a

posed to fall to 5 percent once the "temporary"

$349 million tax increase out of the legislature.

tax increases of years past had finally lapsed.

In 2002 he raised a panoply of taxes, including

The income tax rate cuts in Taft's recent plan

the cigarette tax (by 31 cents, a 130 percent

have boosted his final-term grade to a C, but

increase). Upon reelection, Taft proposed a so-

they weren't strong enough to overturn the fis-

called tax reform package that would raise

cal damage he has inflicted over the past eight

taxes by $2.3 billion. Although it would make

years. Now Bob Taft is finally going home.

some cuts to corporate and personal income

That's the best news Ohio taxpayers have had

tax rates, it would also broaden the sales tax

in a long time.

and result in a net tax increase. Increases in

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