Never ever raise taxes in a recession
Gov. Perdue proposed raising taxes $500 million in FY2010 and $677 in FY2011. Senate Democrats proposed raising state and local taxes $624 million in FY2010 and $852 million in FY2011. Both the governor and senate also increased fees. Both the governor and senate also took money from numerous reserve and trust funds. House leaders so far have indicated they will not raise taxes to balance the budget, but have not said what reserves they will tap or what fees they will increase. The final budget must not raise taxes, and they should limit other money grabs, too.
The government spends more than enough
The General Fund budget grew 34 percent during Gov. Mike Easley’s second term. The current year’s General Fund budget called for spending of $2,311 per person ($9,244 for a family of four). Spending per person, adjusted for inflation, is twice as high as in 1984. This spending has to be paid from taxes. Revenue projections for FY2010 are higher than any year before FY2007. Adjusted for inflation and population, revenue is higher than any year before FY1999. North Carolina built its reputation as a thriving state during the 1980s and 1990s with much lower spending per capita than the leanest budget being considered this year.
Taxes are high enough
North Carolina already has the 20th highest state and local tax burden among all states, and among the highest in the South. The income tax rate is one of the highest in the country and the top rate starts at one of the lowest levels of income. The corporate income tax rate is second only to Louisiana in all the South, higher than any other state in the Southeast. Three out of four respondents in a recent Civitas Institute poll think tax cuts would do more to stimulate the economy than government spending. Two out of three would cut spending to balance the budget instead of raising taxes.
Enough is Enough
Legislators need to stop recklessly spending our money. They need to keep taxes where they are and enact real reform with tax cuts once the current crisis is over. Balancing the budget through spending cuts will allow taxpayers to keep more of their money and provide some certainty to the economy. Consumers and producers are the economy. If they have money to save, invest, and hire with some certainty that their returns will not be confiscated they will jumpstart the economy. Government spending is crowding them out. State legislators can’t control Washington, but they can set an example. Let them know
We are Taxed Enough Already!"
