Friday Afternoon North Carolina Budget Fcuk up News

Although the economy grows in response to tax reductions
it is unlikely to grow so much that lost revenue is completely recovered
by the higher level of economic activity

Council of Economic Advisors

"...the 2013 cut to individual income tax rates is costing the state far more than originally projected.

[in 2013, North Carolina] ...cut income taxes from a three-tiered marginal system of 6 percent, 7 percent and 7.75 percent to a flat rate of 5.8 percent for 2014 tax year.

...the updated cost of the tax cut is $680 million for the current tax year.

That's $205 million, or 43 percent, higher than the original projection of  $475 million.

The cost for the 2015 tax year is also projected to be $200 million higher than original estimates – $890 million rather than $690 million.

Additional tax cuts are set to take effect Jan. 1.

...the revision is due to the fact that North Carolina wages have not grown as quickly as projected last year.

The Laffer Curve, anyone know what this says?

It says that at this point on the revenue curve
you will get exactly the same amount of revenue as at this point…

Does anyone know what Vice President Bush called this in 1980, anyone? 

Something-d-o-o economics, voodoo economics

Ferris Bueller’s Day Off

...the forecast does not account for corporate tax rate cuts.

...Republican leaders said last summer that lowering taxes would cause the economy to grow, helping more people find work and bringing in more revenue.

Why would some want others to believe
tax cuts pay for themselves?

They expressed confidence that the cost to the state would be actually be lower than initial projections.

Even by the standards of political boosterism
this is extraordinary

No serious economist believes…tax cuts will pay for themselves

The Economist

The unwelcome news comes as lawmakers continue to struggle to find agreement on teacher pay raises, funding for teaching assistants and cuts to Medicaid in the 2014-15 budget.

"...the tax scheme over the next five years will be ...nearly $900 million more than previously estimated," said Sen. Josh Stein, D-Wake...


There is no credible evidence
tax revenues…rise in the face of lower tax rates…

Every $1 trillion tax cut should lead to $830 billion more debt

N Gregory Mankiw
Chairman of President Bush's Council of Economic Advisors, 2003-2005

Has corruption of the political, capitalist and information systems
negatively influenced economic performance and consumer behavior
through legislation, budget appropriation, regulation and taxation
to benefit a few at the expense of many?

A government which robs Peter to pay Paul
can always depend on the support of Paul

George Bernard Shaw

Why do most who argue the relatively wealthy pay more taxes
than most as a percentage of income exclude Social Security, Medicare
 and other federal, state and local income, sales, property, toll road, license, permit,
communications entertainment, fuel, transportation and utility ect…taxes?

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