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

NC business owner explains need for paid leave law

In case you missed it earlier this week, ...

Top Stories from NCPW

  • News
  • Commentary

Jim Womack has a reputation in North Carolina for being many things, but a conservationist isn’t one [...]

Just days after a North Carolina official tapped a Robeson County elementary for a controversial cha [...]

Two groups seeking state contracts to run struggling North Carolina schools have professional ties t [...]

North Carolinians will lose their “precious right to vote,” as U.S. Supreme Court Justice Ruth Bader [...]

The folks running the General Assembly reached a new low this week in their efforts to dismantle our [...]

National civil rights leaders call for the rejection of North Carolina’s Thomas Farr [Editor’s note: [...]

Budgets matter, both within government and inside each household across America, because they demons [...]

Why the legislature now operates this way and why it’s a big problem The North Carolina General Asse [...]

Featured | Special Projects

NC Budget 2017
The maze of the NC Budget is complex. Follow the stories to follow the money.
Read more


NC Redistricting 2017
New map, new districts, new lawmakers. Here’s what you need to know about gerrymandering in NC.
Read more