Shrinking state spending dangerous to NC
When the Great Recession hit in 2008, North Carolina, like many states, cut its spending to avoid accumulating huge amounts of debt during the economic downturn. However, while most would say the recession has passed and the economy is returning to normal, the legislature continues to hack away at spending indiscriminately. This type of budgeting has many concerned about the future of the state.
From The News & Observer
Republicans are hailing tax revenue that exceeded projections by $400 million as a result of their prudent spending and stimulating tax cuts. But this “surplus” is but a share of the revenue that would have been generated under the previous tax code. And it is likely a one-time surge tied to stock market gains that Senate leaders are using to justify more recurring cuts in the corporate tax and the personal income tax. That way lies Kansas.
Volcker says this neglect of investment and deferral of cost will undermine a state. “It’s like termites eating at a structure,” he told The New York Times last week. “The building hasn’t fallen down yet. But if you get enough termites, the building is going to get pretty rickety.”
That sound you don’t hear amid legislators’ self-congratulations over suppressed spending and tax cuts is the sound of termites. North Carolina is going to get pretty rickety.