Thus, despite election-year pressures, lawmakers generally are "reluctant to make significant tax cuts," says Raymond C. Scheppach, executive director of the National Governors Association. Harley Duncan, executive director of the Federation of Tax Administrators in Washington, agrees that most tax cuts this year are likely to be "fairly modest."
Some states are weighing substantial tax cuts. In Massachusetts, Republican Gov. Mitt Romney has proposed cutting the state's 5.3% personal income-tax rate to 5.15% in fiscal 2007 and 5% in 2008. The proposal is still pending before the legislature, says spokesman Eric Fehrnstrom. If enacted, these changes would cost the state $132 million in fiscal 2007 and $488 million in 2008, he says. When fully implemented, it would cost the state about $700 million, he adds.
While I dislike the phrase "cost the state" (since it assumes that the government already owns future tax-payer dollars) it is good to see true fiscal conservativism in action. He came in, balanced a $3 billion deficet and now that there is a surplus he sees the wisdom of decreasing the tax burden on the tax payers. We'll see if the democratic state legislature agrees (I'm not holding my breath)