Here we go again.
Governor Cooper’s spendaholic Democrats are touting a Fiscal study claiming the conservative reform majorities’ tax cuts will produce billions in budget shortfalls (Oops – like the ones these same Democrats used to run up). This old song is as worn out as an old Donnie and Marie 45.
Because remember when the reliably wrong Ned Barnett at the News & Observer was wailing about budget deficits because of Republican tax cuts? We suggested Ned put crow on his July 4th menu when the growing economy generated higher tax collections, as more people found more jobs.
Back in FY 2014, Fiscal Research made long term revenue projections like the ones the Democrats are complaining about now. But it turned out, after Republicans cut taxes, revenues ran $2 billion ahead of what Fiscal Research had predicted. Once again, the chicken littles were wrong as a stronger economy brought in more tax revenue.
Today, Janet Yellen and the Federal Reserve are worried they may never reach their 2% inflation target. But Democrats want to increase spending up to 5% a year. That would be over twice the rate of inflation.
Who says politicians need to increase their spending faster than the wages of the taxpayers paying the bill?
According to the Democrats, everything will collapse unless spending and bureaucracy grow 20% in the next five years, amounting to $4.6 billion more in government’s annual burden on our economy. Well, we don’t recall Moses bringing that Commandment down from Mount Sinai.
Tax cuts for families and businesses are the best way to expand our economy and create more jobs. That’s why the conservative majority is making the first $20,000 of family income tax free.
And even with that tax reduction, revenue still grows $3.6 billion under Fiscal Research’s static assumptions, plenty of money for necessary budget increases, but not for the budget busting the greedy left covets.
It really is “the economy stupid”, in James Carville’s famous words.
The spendaholics didn’t understand that tax cuts mean higher revenues when they cried wolf before. And they still don’t get it.