As the National Governors Association meets in Washington, D.C., this week, there’s plenty of dire news for taxpayers around the country. President Obama’s budget deal earlier this year hiked marginal rates on higher-income payers and raised taxes on most American workers by eliminating the payroll tax holiday. Even after these tax hikes the president says “There is no doubt we need additional revenue,” indicating his appetite for extracting ever-larger “fair shares” from taxpayers is not sated.
Things are even worse at the state level. California Gov. Jerry Brown sought and won a referendum raising income taxes in the country’s most populous state. A brief drop in the state sales tax rate was also kyboshed. In Michigan, 400,000 households are being hit by the elimination last year of middle-income and child tax credits. Illinois more than doubled its income tax rate in 2011.
Yet while the outlook is grim in many states, a handful of governors, all Republicans, are pushing for tax reforms, reductions and even a few radical changes.