Let’s compare North Carolina’s economic growth under high tax policies and low tax policies.
Between 2000 and 2010, Democrat Governors Mike Easley and Bev Perdue had a hammerlock on state government with a solid Democrat Legislature. Just during Mike Easley’s 8 years, state spending soared by 52% with at least 5 major tax increases to fuel the spending.
Did it help North Carolina’s economy? Nope. During the high tax years, North Carolina’s per capita income growth was 20% below the national average and 45% below the Southeast region average. Not a good record. A record of economic stagnation.
Beginning in 2011, a new conservative majority in the Legislature , now joined with a reformed minded Governor, have balanced the budget by controlling spending instead of raising taxes. And the sky high taxes of Easley and Perdue have been reversed with across the board income, business and sales tax reduction.
So what is the result of the change? North Carolina is creating jobs 25% faster than the national average and per capita income is growing 12% faster than the national and regional averages.
Under conservative reform policies, our economy is doing better than the nation and the region in job creation and income growth. North Carolina has gone from lagging the nation to leading.
So how can we make the economic change for the better a permanent change for the better? Lock in conservative reforms with a Taxpayer Protection Act in the Constitution to limit spending increases to no more than inflation plus population growth.
The State Senate has passed the Taxpayer Protection Act to limit spending and keep our economy on the right track.
No state will ever enjoy a true economic boom until Washington gets cleaned out. But North Carolina has gone from one of the worst to one of the best with conservative reform policies of fiscal restraint and tax cuts. Now, passing the Taxpayer Protection Act can put fiscal responsibility into the Constitution and clip the wings of politicians for good.
Voters who want to make positive change permanent will be watching in March to see how their Representatives pledge to vote on the Taxpayer Protection Act.