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What’s the deal in Kansas these days? That’s a question Governor McCrory and North Carolina’s state leaders should be asking themselves.

After passing huge tax cuts in recent years, the subsequent unimpressive economic performance and continued disinvestment in core public investments in Kansas serve as a cautionary tale for North Carolina.

A recently released report by the Center on Budget and Policy Priorities (CBPP) highlights how Kansas’ economic performance has failed to live up to the promises made by Governor Brownback and his legislative allies. Kansas passed huge income tax cuts in 2012 that reduced annual revenue for public investments by more than $800 million for FY 2014. Proponents claimed the tax cuts would boost the state’s economy.

Last year North Carolina followed Kansas’ lead when state leaders passed and Governor McCrory signed into law a tax plan that includes huge income tax rate cuts and reduces annual revenue by more than $650 million once all tax changes take effect. Here too, the governor and proponents claimed that cutting taxes will boost North Carolina’s economy.

So how is Kansas faring these days?

Kansas hasn’t experienced anything close to an economic surge in the wake of the huge tax cuts. Massive revenue loss has meant continued state funding cuts to core public investments – public schools, colleges and universities, and healthcare services, for example. Read More

Dean BakerIt will be a full house, but a few seats still remain for tomorrow’s NC Policy Watch Crucial Conversation luncheon with one of the nation’s leading economists, Dean Baker. Pre- registration is required and ends tonight. Don’t miss the opportunity to hear from this knowledgeable and important voice at this critical time. Here are the basics:

When: Wednesday, March 26 at noon — Box lunches will be available at 11:45 a.m.

Where: Center for Community Leadership Training Room at the Junior League of Raleigh Building, 711 Hillsborough St. (At the corner of Hillsborough and St. Mary’s streets)

Cost: $10, admission includes a box lunch.

Click here for parking info.

Click here to register.

Click here for more information.

Governor McCrory is at it again—incorrectly claiming that his decision to dramatically cut unemployment benefits is responsible for turning around the state’s job market. During a visit to Morganton over the weekend, the Governor stated:

 “There’s nothing worse than if you have a job opening and someone decides to take a government check instead. So we had to bring the two together,” he said. “We made a decision [to cut unemployment benefits]. And that decision alone is the one lone factor, in comparison to any other state, which I think has helped North Carolina lower its unemployment rate drastically in the last five months.”

While the Governor is correct that the state’s unemployment rate has dropped over the last year (from a revised 8.8 percent in January 2013 to 6.7 percent a year later), he couldn’t be more wrong about why the rate has dropped—and what it means for the state’s economy. The unemployment rate is falling because the labor force is contracting, not because jobless workers are moving into jobs.

Let’s take these one at a time.

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As our state leaders continue to look for ways to give more and more tax cuts to profitable corporations, these corporations continue to find ways to avoid paying their fair share of taxes. It is a win-win proposition: Heads they win; Tails they still win!

A report released today by the Institute on Taxation and Economic Policy and Citizens for Tax Justice finds that 269 Fortune 500 companies collectively avoided paying $73.1 billion in state corporate income tax between 2008 and 2012. Nine of these multi-state corporations are headquartered in North Carolina and earned more than $51 billion in combined profits during this period.

The nine NC-based multi-state corporations paid an average overall corporate income tax rate of just 3.7 percent, which is well below North Carolina’s 6.9 percent statutory rate at the time. Unfortunately, our state leaders prefer to focus on optics rather than reality. Read More

Dean BakerWhat’s the real deal with the American economy? Where do things stand? What’s holding us back? What about the situation in North Carolina? Please join us Wednesday, March 26, as we tackle these topics and more with one of America’s leading economists, Dean Baker.

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is frequently cited in economics reporting in major media outlets, including The New York Times, The Washington Post, CNN, CNBC and NPR. He writes a weekly column for theguardian.com, The Huffington Post, Truthout and his blog, Beat the Press,, which features commentary on economic reporting. His analyses have appeared in many major publications, including The Atlantic, The Washington Post, the Financial Times, and the Daily News (New York). He received his doctorate in economics from the University of Michigan.

Click here to register Read More