"Rubber Stamp Pat" McCrory's Reckless Tax Cuts Just Keep On Digging A Bigger Budget Hole - Now $400M Deep in The Red...And Still Digging
The latest revenue report just released from Gov. McCrory's own administration paints a dismal budget picture and underscores the Governor's broken promise of "revenue neutral" tax reform.
RALEIGH - A new report from the North Carolina Office of State Controller shows that state tax revenues for the first four months of the 2014-15 fiscal year are lagging the same period last year by almost $400 MILLION.
The sobering budget math flies in the face of any so-called "Carolina Comeback" and Governor McCrory's promise at his 2013 State of the State Address that tax reform "must be revenue neutral."
During his first State of the State Address on February 18, 2013, just a month after he was sworn into office, Gov. McCrory said of pending "tax reform": "It must be revenue neutral. We must implement this plan systematically and strategically to insure that we don't put at risk business confidence or crucial revenue needed for services to our citizens."
In fact, for each month that unfolds with the new radical cuts to personal and corporate income taxes, the deeper the budget hole has grown. The budget hole was $313M after the first three months of the fiscal year. The budget hole is now $400M after the first four months of the fiscal year. This tax reform is so far nowhere near revenue neutral, and the "trickle-down" predictions of lower rates leading to more revenue are once again proving false.
"Gov. McCrory's so-called tax reform is starting to look like a slow motion train wreck which is a windfall for the wealthy but will lead to further cuts to our public schools and universities," said Gerrick Brenner, Executive Director of Progress North Carolina Action. "Pat McCrory clearly promised that tax reform would be "revenue neutral" and not cost the state a loss of revenue needed to fund vital services like public education. Then in the summer of 2013, McCrory caved in to a right-wing legislature, and he rubber-stamped radical tax cuts which primarily benefit corporations and the wealthy. Gov. McCrory broke his promise, and now the state faces a huge budget hole."