Why Governors Are Squawking

NEW JERSEY

Raised state income and sales taxes $2.8 billion

Democratic Governor Jim Florio already has a taxpayer revolt on his hands. More than 500,000 voters have signed a petition calling for a rollback of the hikes imposed in June, and IMPEACH FLORIO bumper stickers are sprouting. Limiting federal deductions for state levies to $10,000 a year would hit more than 48,000 residents with an average $5,400 in additional taxes and could further undermine Florio's progressive tax reforms.

CALIFORNIA

Adopted a budget-balancing plan that includes $843 million in new taxes

Late last month Republican Governor George Deukmejian and the Democratic- controlled...