Notice what is going on here. The drive to “reform” the North Carolina tax system is being turned into a drive to simply hike taxes. Part and parcel of that move can be seen in state Sen. Dan Clodfelter’s (D-Meck.) erroneous claim that the current state tax system is “broken.”
How can a system be broken that for most of the past decade threw off billions more each year in revenue? As ever, revenue was not the problem, spending by Clodfelter and his General Assembly cohorts was out-of-control. Spending outpaced both population growth and inflation in recent years.
Yes, general fund revenues are projected to contract about 12 percent this year, to around $18.5 billion. When the economy contracts, this must happen when your tax system targets wealth, income, and economic activity. Clodfelter and crew are just stamping their feet and wishing it weren’t so, but adults know better.
But here is the kicker. That contracted, “broken” revenue number is still over $2 billion more than the state general fund got waaayy back in…2005-06. Yet Raleigh is acting like it is the end of the world.
Given that mindset, no tax system can keep up. Hence the none-too-veiled call for tax hikes to keep the spending spree going — until it is the backs of taxpayers that finally snap.
Look at us now, senator.
