Wall Street Journal editorial, The Minnesota Prelude: Land of 10,000 Tax Increases:

Minnesota has a rich Scandinavian heritage, and if Democrats in the state legislature have their way the state is headed toward Scandinavian tax rates. Governor Tim Pawlenty, a likely GOP Presidential candidate, has now smacked this slow, fat pitch out of the ballpark.

Earlier this week Democrats who control both legislative houses passed a three-year $1 billion income tax increase. This would raise the top tax rate to 9.1% from 7.85%, taking the rate even higher than that in New Jersey and New York (outside of Manhattan).

Yesterday Mr. Pawlenty vetoed this tax foolishness, as he has three previous tax hikes as Governor. The tax increase was targeted at the rich, but it applied to individuals with an income of $113,100 for singles and $200,000 for joint filers. Note how the definition of “rich” keeps becoming more expansive. …

This Minnesota drama is typical of the fiscal battle taking place in at least a dozen state capitals, and soon to occur in Washington. Today’s Democratic Party default is always higher taxes. Dominated by government-employee unions, they refuse to rethink government spending despite the steep recession. Last year six states raised income tax rates, and this year another five are attempting to do so.

That didn’t work so well in 2008 or 2009 in Hawaii, Maryland, New Jersey or Wisconsin—states that still have budget holes even after trying to soak the rich. Maryland lost revenue from millionaire tax filers after it raised rates.

Mr. Pawlenty’s veto sets the stage for an extended budget showdown that should help him politically. Higher tax rates don’t produce prosperity or balanced budgets—as we can see in New Jersey and New York, or Greece and Portugal.