One of the two greatest political lies ever told and believed by many is the proposition that Republican economic policies are good for rich people and Democrat economic policies are good for poor people.
News alert: The opposite is true.
It is an observable fact to any genuine enquirer that keeping taxes as low as possible at all levels of government improves the economy for everyone.
However, for decades Democrat leaders in North Carolina followed a “tax and spend” policy that was regressive for everyone.
Ten years ago when Republicans were first elected to the majority in the North Carolina General Assembly, they immediately started lowering taxes and limiting increased spending to inflation plus population growth.
The naysayers, mostly ultra-liberals and biased media outlets, said those Republican policies were “draconian” and would destroy all the wonderful things done by the Democrats over their 140-year reign in the majority.
Space will limit me to just a few facts:
Currently North Carolina is ranked the No. 1 best state for business by Forbes and Site Selection magazines, and was Business Facilities’ 2020 State of the Year. That type of tide raises all vessels and sets the stage for upward movement from lower incomes to higher incomes for everyone.
In 2008, after a straight decade of Democratic leadership, North Carolina was billions in debt with massive budget deficits while at the same time boasting the highest taxes in the southeast. Teacher furloughs and “reversions” of money from school districts back to the state were imposed to balance 2009-10 budgets. Those were shameful conditions.
Speaker Tim Moore released this statement on February 11th: “A joint revenue forecast released Thursday by the legislature’s Fiscal Research Division and the Office of State Budget and Management predicts tax collections will exceed previous estimates by $4.1 billion (17.6%) to support continued budget growth under Republican leadership for North Carolina.
“Balanced budgets, strong savings, and revenue surpluses have maintained unanimous AAA credit ratings for North Carolina.”
This good North Carolina news comes as a result of Republican efforts over the last decade to lower sales taxes, personal income taxes and corporate taxes. Those efforts resulted in leaving more money where it belongs — in your pocket to spend or save as you see fit.
By the way, as those taxes were lowered our revenues went up.
The joint forecast also states, “The state’s tax structure is such that a majority of taxes are collected from middle and upper income households and large businesses.”
The factual economic record clearly shows that a pro-growth and smaller government approach to be better for all people than a pro-tax and spend big government approach.
The federal stimulus in response to the pandemic, initiated during the previous Republican administration, gives me great cause for concern. Consider this from the joint report: “To date, the federal relief programs have provided and estimated $18 billion to North Carolina households and an estimated $12.5 billion to businesses.”
It also appears there is more, much more to come from the current federal administration.
Where did that $30.5 billion come from? And, how much is it really worth? How much will it buy compared to what it would buy two years ago?
Little by little we have become desensitized to hearing and supporting spending in the trillions of borrowed dollars.
We, the people should think four-times-twice about the economic future of our grandchildren’s children because one day they might have to burn some of this paper money to stay warm while looking for a potato to eat.