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Oklahoma: Governor Brad Henry pushed to lower the top income tax rate permanently to 6.75% and to eliminate capital gains taxes on property held more than five years. Thus far, the state senate has approved it.

NOW, BEFORE CONSERVATIVES start pressing the panic button, there are some Republican governors out there fighting for tax reform. Governors Ernie Fletcher of Kentucky and Mark Sanford of South Carolina pushed for income tax cuts this year, although both were thwarted by recalcitrant legislatures. Tim Pawlenty of Minnesota wants to make the state corporate income tax more business friendly, while in Florida Jeb Bush managed to get a nine-day sales tax holiday (July 24 to August 1 for those of you planning shopping holidays) and an 8 cent reduction in the gas tax for the month of August. Finally, Craig Benson of New Hampshire wants legislators to support a Taxpayers Bill of Rights that would limit increases in the state budget to the rate of inflation and changes in population and would require a two-thirds majority in the state house and senate to pass new taxes.

Yet the Republicans need more tax heroes; at present, they can ill-afford sellouts. When GOP governors and state legislators cave on higher taxes, they lose one of the GOP's natural electoral advantages. This hurts their chances later on should they decide to run for U.S. Senate or even president. With many Democratic governors apparently getting wise to the tax issue, Republican politicians have diminishing room for error.

topics:
Taxes, Business, Law, Alaska