State Revenue Down $400 Million From Last Year

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A new report out shows that through third quarter state revenue is down nearly $400M from last year. This is due to the tax reform plan that Gov. McCrory claimed would be revenue neutral. From WFAE's article,

North Carolina's tax revenues are down almost $400 million compared to the same period last year. That's according toa report the Office of the State Controller released Thursday on the first four months of the state's fiscal year.

The roughly $400 million represents a 6 percent drop in tax revenue from July through October compared to the same period last year.

The main difference between now and then is that Republican state lawmakers cut personal and corporate income taxes and expanded the sales tax base.

Lee Roberts is North Carolina budget director.

"The intention was for the increased sales tax revenues to make up for the lost personal income tax and corporate income tax revenue," Roberts says. "We are seeing a significant upsurge in collections from sales tax."

But it's not enough; it only covers about half what the state has lost in income tax revenue.

Roberts says it's too early to tell if North Carolina will miss its budget. He says the lion's share of income tax revenue comes in from February to April, when residents file their returns.

Comments

  1. Jonathan's avatar
    Jonathan
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    A few things I'd like to point out. 1) The hard working citizens now have a little extra take-home in their paychecks, and can choose to save or spend it as they wish. 2) The holiday shopping is just now starting, so the State should see a large uptick in sales tax revenue coming soon. 3) Even if the State does end up a few percent behind where it used to be, perhaps the House/Senate will get rid of some of the massive amounts of wasteful spending. The rest of us are having to get by with less, so maybe the State can learn to get by with a little less as well.
  2. Robert D. Morris III's avatar
    Robert D. Morris III
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    Jonathan<br /> Malarky! That's the same pretense that's made the deep south one huge wave of poverty. Meanwhile those at the top enjoy a ever growing inequality between the poor and middle class and the top earners. Instead of Adressing that problem with this midterm election, they just made a lot worse.
  3. Susan Sperry's avatar
    Susan Sperry
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    I did not see much of an increase in my paycheck, not significant enough to write home about. I would have rather had the state keep the few measly dollars and use it to pay for new txtbooks.<br /> As it stands it looks like we will 1 Billion in the hole by the end of the fiscal year. More and more programs will be cut along with the wealthy taxes.<br /> We are following the footsteps of Kansas.
  4. Susan Sperry's avatar
    Susan Sperry
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    Johnathan, those few measly dollars you saved will be needed for the upwards of 25% increase on homeowners insurance and increase in auto insurance. <br /> Socking it to the middle class.<br /> Your nightmare has just begun....
  5. Matthew Poston's avatar
    Matthew Poston
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    Johnathan. How much more meager can things get? As a educator, what else is there to cut? Lets cut more teachers, welfare programs, taxes for the wealthy, Medicaid, etc. I could continue but all those cuts widen the gap between the wealthy and the poor.
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