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Oklahoma

Brad Henry, Democrat

Legislature: Divided

First-Term Grade: C

ture liked the plan more than did Henry's

Oklahoma gubernatorial candidates of all

Democratic allies there. The resulting budget

political stripes in 2002 endorsed some ver-

gridlock caused Henry to settle for a smaller

sion of a state income tax phaseout. All

tax cut than the one he proposed. The final

except Brad Henry, that is. His first term,

agreement, which phased the top income tax

however, has been better than expected. By

rate down to 5.25 percent over four years, is

his second year in office Henry was propos-

the largest tax cut in state history. With rev-

ing tax cuts, such as an elimination of the

enue pouring into state coffers--by close to 5

capital gains tax for sales of Oklahoma prop-

percentage points faster than personal

erty. The main blemish on his tax record is a

income in the state--there is ample room to

hike in the cigarette tax from 23 cents to

cut taxes even further. Yet Henry seems too

$1.03. But he bounced back with a plan to cut

willing to spend most of the new money on

the top income tax rate by more than 20 per-

new government programs: His FY07 budget

cent (from 6.25 to 4.9 percent) and eliminate

request grew by nearly 6 percent.

the estate tax. The Republicans in the legisla-

Oregon

Ted Kulongoski, Democrat

Legislature: Divided

First-Term Grade: D

current biennium. As Kulongoski campaigned

Ted Kulongoski stated during his 2002 cam-

for reelection this year he suggested during a

paign that he would support tax hikes.

televised debate that Oregon needs a sales tax

Unfortunately, that's one campaign promise he

(it's currently one of the few states without one).

kept. He supported a $725 million income tax

He also proposed putting mandated tax rebates

hike referendum on the ballot at the time. In

on hold for six years. That would mean a tax

January 2003 the referendum was soundly

hike of an estimated $883 million this year

defeated, and that prompted a seven-month

alone. Meanwhile, two initiatives--one to cut

budget battle that finally ended with a massive

state taxes and the other to put a cap on the

$800 million tax increase package that had to

budget--will appear on the 2006 ballot. It seems

be put before voters. Kulongoski actively cam-

that voters in Oregon will have a very clear

paigned for it. In February 2004 the voters again

choice in November between limited govern-

rejected the tax hike, this time by a three-to-two

ment and the big-government policies of Ted

margin. Kulongoski is also a big spender. He

Kulongoski.

proposed an 8 percent budget increase for the

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