End of the Tax Revolt, Con't
While in Texas a few weeks ago, I made the point that it seemed like the tax revolt that had made raising taxes political suicide in much of the country, could be coming to a close. More evidence today:
If 2006 was the year of surpluses for states, 2007 could be the year of tax hikes. Five governors are proposing hefty tax increases to bankroll ambitious new health-care and education programs. Proposals to raise cigarette taxes are on the table in even more states, with the increased revenue going primarily to cover some of the nation’s 46.6 million without health insurance. Interest in raising taxes is strikingly different from the situation just a few years ago, when legislatures facing a fiscal crisis bent over backwards to avoid major tax hikes, instead raiding rainy day funds, borrowing money or expanding gambling to raise more revenue. Then, the aim was to keep the state budget out of the red. Now, the aim is to expand the reach of state government — often to provide health coverage for more citizens.