In Michigan, we have a good example of achieving tax cuts and balanced budgets. Even with the elimination of the shortfall, appropriations have grown an average of eight percent a year while Engler has been governor. It is a simple fact of economics that when you tax an activity you get less of that activity than otherwise have been the case. If the government taxes incomes, income growth will suffer. The results have been the same in New Jersey as in Michigan.
Appropriations continue to grow in New Jersey.
With spending growing approximately two percent per year, the state still manages to pass balanced budgets every year and provide tax relief for New Jersey's families. Both Governor Whitman and Engler realize that the way to improve the well-being of the citizens of their states is to control government spending. The first item in Bob Dole's economic plan is a proposal to amend the Constitution to include a balanced-budget amendment. With presidential support, it is likely that a balanced-budget amendment will be sent to the states for ratification. Both states provide an example of the importance of balanced-budget rules.