Ed Wood "The Right Stuff" Published Oct. 9, 2002

Adding up the score

The Wall Street Journal ran an article recently on the financial condition of the various states and what their governors had done to either improve or worsen their conditions. Sadly, our Governor Sundquist was shown to be in the latter category.

Just in case there are those of you, who, like me, could never afford a subscription, or have the time to read it if you could, here is a summary of their findings.

In the past 12 years, state budgets have increased more than they did in the previous 100 years! State budgets grew faster than the federal budget! The governors even managed to outspend Bill Clinton! Because of runaway spending, many states are planning massive tax increases in 2003. There is a lesson to be learned, if our politicians would listen.

During the 1990-'91 recession, New Jersey, California and Connecticut tried to balance their budgets with massive tax increases, which only plunged them into even deeper fiscal holes. But this time, John Engler of Michigan, Fife Stymington of Arizona and Christine Todd Whitman of New Jersey, cut rates during the downturn. Local economies improved, and these states generated more revenues! Isn't that what our local anti-income tax people have been preaching?

The Wall Street Journal then graded the current governors on their performances. Bill Owens of Colorado, Roy Barnes of Georgia and Jeb Bush of Florida, were given "A" grades. "F" grades were given to Gray Davis of California, Bob Taft of Ohio and our own Don Sundquist.

The article concluded with the statement: "The lesson of the 1990s is that governors can't tax their way back to prosperity. An analysis by the American Legislative Exchange Council of state tax policy during the past decade found that the 10 states that cut taxes the most created twice as many new jobs as the 10 states that raised their taxes the most. In investment terms, it's always wise to short states that are raising tax rates."

With all our candidates running around talking about how they are going to create more jobs for our state, I have not heard a one of them mention cutting taxes as a way to get it done!

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Ed Wood is a resident of Sparta, TN. His column is published each Wednesday in the Crossville Chronicle.