Existing comment:
Cutting Taxes, Shrinking Government:
Governor Ronald Reagan inherited a state government with a deficit of more than $200 million. California law required a balanced budget, which compelled him to raise taxes in his first term. But he also imposed spending cuts, began a hiring freeze, and canceled many projects.
By 1968, California had a $100 million surplus. In two years, Ronald Reagan eliminated state income taxes for the poorest families and reduced taxes on low-to-middle income wage earners. He returned $5.7 billion in taxes to Californians and slowed the growth of the state workforce by more than half.
"During those eight years in Sacramento, I think we made the state government less costly, smaller, and more businesslike."
-- Ronald Reagan |