GOP Indiana Gov. Mitch Daniels: Government Will Likely Have To Raise Taxes
Ignoring the right-wing talking points, Mitch Daniels, the Indiana governor who is mentioned as a 2012 presidential contender, acknowledges that raising taxes may be the fiscally responsible thing to do.
“At some stage there could well be a tax increase,” he said. “If you believe our fiscal mess is republic-threatening, and if you have to take the third- or fourth-best approach, at the end of the day, I’d do it.”
It’s never noted in Republican circles that Ronald Reagan had to raise taxes after he cut them.
Reagan was actually willing (if not always happy) to compensate for gaps in the government’s revenue stream by raising rates. In 1982, for example, he agreed to restore a third of the previous year’s massive cut. It was the largest tax increase in U.S. history. The Gipper also raised taxes in 1983. And 1984. And 1986. The party sainted him for his efforts.
Most Americans are now willing to let go of tax cuts for the wealthy. Look at how Republican governors have handled budget issues:
Eight days after taking office as governor of Indiana in 2005, Mitch Daniels pitched a sizable tax hike on all individuals and entities earning over $100,000. A few days later, Gov. Rick Perry of Texas, another potential presidential candidate, came out in favor of upping his state’s franchise tax. Mike Huckabee raised taxes in Arkansas, as did Mitt Romney in Massachusetts.
Sen. George Voinovich of Ohio, a longtime fiscal hawk, recently criticized his fellow Republicans for signing [Grover] Norquist’s anti-tax pledge, saying increases should be on the table.
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