As a 40 yr resident of Oregon, one of the few states that have never had a sales tax (initiatives have been voted down every time), I can say only this:
Oregon has experienced one of the very best continuous 8 yrs of economic prosperity from 1982-90, mainly due to a significant hi-tech industry expansion in the Portland area. During that time, user fees, property development fees, excise taxes, utility customer charges, public purpose charges, contractor's licensing fees, motor vehicle's registration and titling fees, library levy's, public parks fees, county fees, vector control fees, community college levys, public school levys, metropolitan transportation fees, etc etc etc have cumulatively all gone up faster than the Cost of Living, so that Oregon now has essentially one of the highest per capita governmental costs of any state.
Nevertheless, Oregon is now facing a $1B budget shortfall, and there have already been 4 special State Congressional sessions to balance that budget. Just yesterday, Governor Kitzhaber announced his veto of the latest legislative budget, threatening yet another special session and the prospect of a November ballot measure asking for increased income taxes and/or a sales tax (virtually certain to be defeated).
The "Reagan years" of monetary redistribution did result in some reduction of the Federal income tax rate, but the consequential state burden increased more than the off-setting Federal allocation.
Bottom line: it doesn't matter where the money comes from. Democratic government will always spend more than it receives, and Republican government will always spend more than it saves.
So much for the rantings of a disillusioned and skeptical Oregonian taxpayer!
Craig
PS: I'm sure you expect YouKnow to respond to this thread, eh?