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Iowa fiscal policy gets an 'F'

October 21, 2008

The libertarian Cato Institute gives Governor Culver a failing grade for his management of the states finances. They explain:

Chet Culver campaigned on a plan to increase the state's cigarette tax, and he followed through on that threat in 2007, with the effect of draining the wallets of Iowa smokers by about $140 million annually. This year, Culver has gone after businesses with a large corporate tax increase in the form of tax base broadening. On spending, Culver's performance has been equally poor, proposing increases in per capita spending averaging 8 percent annually.

The warning signs were always there:

Iowa's voters are so upset about this that they look poised to increase the majority of the Governor's party in both houses of the state legislature. It will be interesting to see how this works in a year or so, when the revenue pinch of the economic slowdown kicks in.

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