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.”