Reagan’s record as governor of California – where he had absolutely no access to the nuclear button – was all too moderate. Despite his bravado about having stopped the growth of state government, the actual story is that the California budget grew by 122 percent during his eight years as governor, not much of an improvement on the growth rate of 130 percent during the preceding two terms of free-spending liberal Pat Brown. The state bureaucracy increased during Reagan’s administration from 158,000 to 192,000, a rise of nearly 22 percent – hardly squaring with Reagan’s boast of having "stopped the bureaucracy cold."
Neither is Reagan’s record on taxes any comfort. He started off with a bang by increasing state taxes nearly $1 billion in his first year in office – the biggest tax increase in California history. Income, sales, corporate, bank, liquor, and cigarette taxes were all boosted dramatically. Two more tax hikes – in 1971 and 1972 – raised revenues by another $500 million and $700 million respectively.
By the end of Reagan’s eight years, state income taxes had nearly tripled, from a bite of $7.68 per $1000 of personal income to $19.48. During his administration, California rose in a ranking of the states from twentieth to thirteenth in personal income tax collection per capita, and it rose from fourth to first in per capita revenue from corporate income taxes. As John Vickerman, chief deputy in the legislative analyst’s office in Sacramento, concluded: "Obviously, the tax bite went up under the Reagan regime. It was a significant increase even when you start considering inflationary dollars.... The rate of growth was about the same as his predecessor."