As an exercise in reflecting the state’s priorities, the House budget falls short. North Carolinians know that ensuring our children’s education is of the highest quality, that our communities can thrive and that our public services—from courts to transportation to environmental inspections—are effective and efficient means committing to fund those things together.
The House budget, like the Governor’s budget before it, assumes that the state can’t afford to invest. But our current availability is limited by policymakers’ own tax choices that reduce resources that support the foundations of an economy that will work for everyone. Policymakers already allowed a second round of tax cuts for profitable corporations and wealthy taxpayers go into effect in January and will cut taxes again for profitable corporations because revenue collections exceeded expectations and met the trigger for further tax cuts. Because the trigger threshold was set arbitrarily low, however, meeting the trigger does not reflect the realities of needs in our communities.
This choice—to hold back the state from reinvesting by prioritizing tax cuts over building a stronger economy—means that there is a lot missing from the House budget. In light of the historic decline in revenues resulting from the recession and its aftermath, policymakers have effectively curbed the state’s ability to reinvest due to tax cuts. The result is missing investments that can mean the difference for children, families, businesses and communities in doing well in our state and the missed opportunity to grow our economy stronger and more competitive.
Here are five missing investments that the Budget & Tax Center has identified: Read More