On Texas Taxes, Bush Rates 'B'

In the midst of the tax-cut debate on Capitol Hill, George W. Bush has received a solid grade for his handling of fiscal policy while governor of Texas, according to a new study released Monday.

The Cato Institute, a libertarian group that favors tax cuts, released its biennial Fiscal Policy Report Card on the country’s governors. Mr. Bush, who was governor of Texas during the period covered in the report, received a B grade from the group.

Ten other Republicans, four Democrats and independent Jesse Ventura also received Bs in the report. Only two As were handed out, to Republicans Kenny Guinn of Nevada and Paul Cellucci of Massachusetts, who’s rumored to be Mr. Bush’s choice for ambassador to Canada.

The critera for the study favors "those governors with the most fiscally conservative records – the tax and budget cutters."

Some other governors who have high-profile jobs in the Bush administration didn't fare as well. Former New Jersey Gov. Christine Todd Whitman, the new head of the Environmental Protection Agency, and Gov. Jim Gilmore of Virginia, the new chairman of the Republican National Committee, both received Cs.

Former Wisconsin Gov. Tommy Thompson, Bush’s Health and Human Services secretary, did receive a B in the Cato report.

The report praises Mr. Bush's record in Texas, mentioning that "he signed two of the largest tax cuts in Texas history."

The group concluded: "If Bush’s years in the White House are as successful as his years in Austin, he will be a good president."

The Cato Institute report is an indication of how the right currently seems content with the Bush administration so far. The president’s tax-cut plan, his selection of John Ashcroft to be attorney general, his education proposal and his plan to fund faith-based programs have certainly helped shore up his conservative base.

Former Christian Coalition executive director Ralph Reed told the Washington Post, "It's early, but the preliminary indications are that his victory and early weeks have energized the grass roots unlike anything I've seen in recent memory. I can't explain it – I can only tell you it's happening."

Radio talk show host Rush Limbaugh commented on the upsurge in the right’s excitement while talking to Vice President Dick Cheney last week.

Cheney said, "There were years back there, eight years ago, when it was pretty lonely to be a Republican in this country."

Limbaugh responded, "We're proud to be now, though. We are. Everybody is. ... I'll tell you, there's a renewed attitude and spirit, wherever I go."

But while the conservative grass roots may be energized, some in Texas are raising new criticism of Mr. Bush’s tax cuts there.

The New York Times reported Monday that state legislatrs in Texas are blaming the Bush tax cuts for budget woes that are just now coming to light.

“There's no doubt in my mind that George W. Bush's tax cuts have put us in the situation we're in right now,” Democratic State Senator Mario Gallegos, a frequent Bush critic, told the Times.

And it’s not just Texas Democrats who are unhappy.

Republican State Senator Chris Harris, concerned about the state's ability to keep up with rising Medicaid costs, complained, “We made tax cuts because we thought we had this huge surplus.”

Meantime, Democrats in Congress are sharpening their attacks on the $1.6 trillion plan Mr. Bush sent to them last Thursday.

Sen. Joseph Lieberman, D-Conn., said on CBS’ Face the Nation Sunday: “This could be one of the great mistakes of this administration and any recent administration. ... It breaks the fiscal responsibility that we built up, that's the underpinning of our economic growth over the last several years. ... We've got to exercise some discipline here.”

So it seems while Mr. Bush is receiving high marks from his ideological peers, in the end, it’s going to be a lot tougher for him to get a good grade when the whole class is in session.

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