When he took office as governor of California in 1967, the state faced a huge budget deficit. Reagan promptly raised taxes by $1 billion - at a time when the entire state budget amounted to just $6 billion. It was then the biggest state tax increase in history. During Reagan's eight years in Sacramento, the top state income tax rate increased from 7 percent to 11 percent. Business and sales taxes also soared.
http://www.washingtonpost.com/wp-dyn/content/article/2011/02/07/AR2011020704538.html
