Governors, GOP Allies Clash Over Tax Cuts
Republican lawmakers in several states are blunting plans by GOP governors to reduce or eliminate income taxes, putting the legislators at odds with figures many in the party see as leading voices on reshaping government.
Friction over tax policy within the GOP has flared in states such as Louisiana, Nebraska, Kansas and Ohio, as Republican lawmakers raise concerns over projected revenue losses from income-tax cuts. Three of those states shelved big income-tax cuts that would be paid for by broadening the sales tax, and in Kansas, legislators will return next week to a continuing debate over the size and speed of proposed cuts.
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What is playing out is a collision of long-held Republican Party ideals as lawmakers want to cut taxes to spur economic growth without running up deep budget deficits. Most of the governors promoting cuts are first-termers who say the income tax damps consumer spending and business creation. The boldest plans, however, can't be done without expanding the sales tax and eliminating certain exemptions, a shift many legislators aren't willing to embrace.
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The tax debate in Republican-dominated capitols comes as national party leaders see the states as a source of policy innovations and fresh faces following Republican election defeats on the federal level last November. The Republican National Committee recently heralded its 30 GOP governors as "America's reformers in chief."
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The most dramatic retreat to date may be in Louisiana, where GOP lawmakers recently shelved plans, first floated by Republican Gov. Bobby Jindal, to eliminate the state income tax while broadening the sales tax to cover a new array of services.
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