American Notes TAXES

It is scarcely news when an elected official betrays a campaign pledge to oppose new taxes. But when a politician who campaigned against higher taxes winds up imposing the biggest state-tax hike in U.S. history instead -- that is news. Republican Governor Bill Clements of Texas managed that epic switcheroo last week. To balance a budget hard hit by declining revenues from the state's oil and gas industries, he signed tax increases totaling $5.7 billion.

New levies include a rise in sales tax (to 6% from 5 1/4%) and a $110 occupational tax on doctors and other professionals. But taxpayers in other states are not likely to feel too sympathetic. The increase brings the tax load on Texans to an average of $53.76 per $1,000 in personal income, vs. a national average of $74.11. Explained Clements: "We did what we had to do."