Red Dawn Underway in North Carolina
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  • Thirdsyphon

    Legislation like this is why 78% of North Carolinians support mandatory drug testing for the General Assembly.

    Ordinary NC citizens are going to feel the pinch of the higher sales taxes in this plan immediately, and every single day. Very few of them will be greatly mollified by the news that their belt-tightening was necessary in order to cut the state’s top marginal tax rates on corporations and the wealthy.

    Unless these policies work better than their proponents have any right to expect, I predict that North Carolina’s Republicans are heading for a very grim Election Day in November.

    • Corlyss

      I guess that means that you think Texas is a fiscal failure then?

      • Thirdsyphon

        Texas is surfing the wave of an oil and gas boom. Unless you’re going to claim that North Carolina will be able to conjure a Kuwaiti-sized oil reserve up from the ground with its new tax policies, I’m not sure how your argument here connects to much of anything.

        • f1b0nacc1

          Funny thing…most of the growth in the economy of Texas during the past decade is NOT oil and gas related, but rather in telecom and manufacturing. Yes, low energy prices help (why wouldn’t they), but they are policy results, not due to a hydrocarbon production boom.
          Look, there are perfectly viable arguments to be made in favor of higher taxes (I don’t buy them, but at least they are intellecutally defensible), but the fact is that if you tax job-creating enterprises, you are likely to end up with fewer jobs in the long run. Texas, for example, has very high sales taxes (a regressive tax), but has made the choice to impose these as a way to allow them to lighten the tax burden on businesses that generate more jobs. They got the jobs (which benefits everyone), at the cost of the higher sales taxes. One can reasonably disagree with the value of this approach, but it clearly works.
          I suggest that if the same result is obtained in NC, the GOP will prosper. If it isn’t, they won’t…

          • Thirdsyphon

            This approach clearly worked in Texas, and I still maintain that the oil and gas boom has more than a little bit to do with it. Petrochemicals aren’t just used for energy- they’re the source material for plastics which makes ready access to them a crucial advantage in manufacturing. Texas shares its low-tax, low-regulation, low-spending model with a lot of other red states (including, now, North Carolina). . . but not all of those states have prospered, so I don’t think that model of governance is what’s fueling all the growth in Texas. But we’ll soon enough see who’s right. North Carolina has given the rest of us a chance to see what Texas-style policies can accomplish in the absence of vast natural resources. And we all owe it to ourselves and to the people of North Carolina to watch and take note of the results.

          • f1b0nacc1

            Bravo…a reasonable and rational dissent!
            We can agree to disagree, and see what the future will bring…I look forward to seeing the results in 2-3 years…

        • Corlyss

          Texas, the home of no income tax, low corp. taxes, low business regulations, and a red hot economy, has been pulling in businesses from the blighted Blue states with dizzying speed. The have great job growth. Their position on taxes and regulation has something to do with their success. NC seeks to replicate it.

  • Corlyss

    “their reform measures seem to divide electorates everywhere they appear”

    As well they might. Everyone loves tax cuts. Nobody likes having subsidies taken away from them. The two approaches have to occur in tandem.

    • Thirdsyphon

      The problem is that they *do* occur in tandem, just not to the same people. The wealthy get to keep their subsidies for things like oil and gas and farming, while only the middle class and the poor are asked to sacrifice their own subsidies like food stamps and medicare. Meanwhile, in North Carolina, the “other side” of the bargain is that middle class and poor see their effective tax rate increase while the tax burden on the wealthy goes down.
      Is it any wonder that a significant fraction of voters might have a problem with this agenda?

      • Corlyss

        You’re looking only at the downside without considering any upside.

  • Thirdsyphon

    Incidentally, I love that on a day that includes this post, the headline “THIS IS WHAT CLASS WARFARE LOOKS LIKE” was reserved for a piece about how hard it’s getting to put on a spontaneous clambake in Southern California.

    • f1b0nacc1

      Considering that it was ultra-wealthy property owners manipulating regulations to keep working class proles off ‘their’ beaches, I think it was altogether appropriate…
      What, the only people who get to have clambakes in Southern CA are the rich?

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