Uncategorized

Keeping “temporary” state taxes is not a tax increase

The first thing North Carolina needs to do in coping with the $3.7 billion budget shortfall it confronts for the coming fiscal year is to take a simple and obvious step that would close the hole by more than a third: Don’t cut taxes.

As is noted in today’s Weekly Briefing:

One of the strangest aspects of the current budget discussion (‘debate’ is too strong of a word thus far) is the way in which so many people have passively accepted the notion that canceling or delaying the scheduled expiration of nearly $1.4 billion in taxes that were put in put in place in 2009 amounts to a tax increase. This is a ridiculous conclusion that will produce a ridiculous result….Once one dispenses with the cockamamie notion that keeping current tax rates at their current levels, amounts to a forbidden ‘tax increase,’ the shortfall shrinks substantially to around $2.3 billion – still very large, but obviously much more manageable.”

One Comment


  1. HunterC

    January 5, 2011 at 12:11 pm

    When facing a deficit of this size, why does any sane person suggest cutting revenue?

    Pure insanity.

Check Also

BREAKING: CBO report says Trumpcare would cost 23 million their health insurance

The Congressional Budget Office has released its much ...

Top Stories from NCPW

  • News
  • Commentary

The U.S. Supreme Court ruled Monday that the North Carolina GOP drew unconstitutionally racially ger [...]

As the N.C. House puts together its budget this week, the same thought is on the minds of representa [...]

Wednesday was the 63rd anniversary of the Brown v. Board of Education ruling, the milestone U.S. Sup [...]

The most shameful thing about the disastrous budget passed by the Senate two weeks ago is not the vi [...]

Court setbacks, public opinion, progressive activism and Trump bode ill for NC conservatives Profess [...]

So, the question as always comes down to one of vision. The elected chieftains who decide how much m [...]

2.8 billion---amount in dollars of needs in communities across the state for rebuilding efforts from [...]

Featured | Special Projects

Trump + North Carolina
In dozens of vitally important areas, policy decisions of the Trump administration are dramatically affecting and altering the lives of North Carolinians. This growing collection of stories summarizes and critiques many of the most important decisions and their impacts.
Read more


HB2 - The continuing controversy
Policy Watch’s comprehensive coverage of North Carolina’s sweeping anti-LGBT law.
Read more