Where Joe Manchin received an A, Earl Ray Tomblin has only received a C. The West Virginia governor's score, however, is a hair beneath that of Texas governor Rick Perry and exactly the same as Virginia chief executive Bob McDonnell.
The Cato Institute released its 2012 report on fiscal policy under each governor. This study rewards "reform minded" governors who find ways to reduce taxes and spending while grading down those who resort to "old-fashioned" tax and spend policies.
Overall, state spending across the nation has leveled off in the past three years. It rose dramatically from $1.41 trillion in 2000 to $2.24 trillion in 2009. Since then, it has risen in small increments to a projected $2.29 trillion this year.
The overall effect of reducing taxes provides substantial benefits. According to Cato:
A study by the Council on State Taxation and Ernst and Young tallied the total cost of state and local taxes on businesses. In 2011 property taxes cost businesses $245 billion, sales taxes on business inputs cost $130 billion, and state corporate income taxes cost $46 billion. A slew of other state and local taxes cost businesses a further $223 billion. All in all, state and local taxes on businesses cost a huge $644 billion, which is more than double the cost of federal corporate income taxes.
The study went on to say that:
Policymakers who want to reinvigorate America’s manufacturing and industrial sectors
should look at reforming the many state and local taxes that impede business investment
Cato asserted that party affiliations reflect more consistency than in the past. Republicans tend to spend and tax less while Democrats tend to do more of both. Even four years ago, many Democrats, such as Manchin, scored high while some Republicans scored poorly. It should be noted that Cato Institute is a frequent critic of the Republican Party and many elected officials identified with it.
Governor Tomblin received a mixed score because, while taxes have been reduced slightly (including a 0.75 percent reduction in corporate income taxes), spending has risen by 12.5 percent.
West Virginia
Earl Ray Tomblin, Democrat Legislature: Democratic
Grade: C Took Office: November 2010
Governor Tomblin’s predecessor, Joe Manchin, earned an “A” on Cato’s report card as a result of his pro-growth tax cuts and moderate spending. Tomblin has a more mixed record. He approved a tax increase on hospitals, but he also approved a phase-out of sales taxes on food. Also, Tomblin supports the scheduled reduction in the corporate tax rate originally enacted under Manchin. However, spending has risen under Tomblin. The general fund budget is expected to increase more than 10 percent between fiscal 2011 and fiscal 2013.
In surrounding states, Ohio governor John Kasich (R) scored highest at 58, McDonnell of Virginia received a 50, Martin O'Malley (D) of Maryland earned a 42, Kentucky governor Steven Beshear received a 48 and Tom Corbett of Pennsylvania received an A grade with a score of 68
Cato study can be read here
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