RALEIGH – The powerful House Rules committee approved and passed out Senate Bill 75 on Wednesday, moving the state closer to offering voters a say on capping the state income tax.
If passed, the proposal will result in a referendum being presented to voters via ballots in the general election on whether or not to add an amendment to the N.C. Constitution that caps the state income tax at 5.5 Percent.
Last year’s rate was 5.499 percent, and, after the passage of the budget bill, will be dropping to 5.25 percent for 2018 tax year.
Right on cue, the Democrat Rage Machine revved up to blast Republicans for their irresponsibility in letting taxpayers of all incomes keep more of their own money.
— Robert Howard (@RobertWHoward) June 20, 2018
Robert Howard is the communications director for the N.C. Democratic Party. The Democrats are fueled by the ability to raise taxes, apparently.
While there are always unintended consequences to government actions, Howard and the Democrats really don’t care about those. That is demonstrated quite clearly in the Democrats’ history of unsustainable spending levels, draining reserves, and racking up debt.
There has been plenty of thought and weighing of the possible consequences of a tax rate cap. Revenue disruptions, credit worthiness, and more have all been raised and addressed. Rating agencies have given the Old North State repeated AAA credit ratings even as Republicans dropped tax rates again and again. The treasury has enjoyed year after year of revenue surpluses, and the ‘Rainy-Day Fund’ is at a record level. All while the tax rate is actually lower than the suggested cap.
And guess what? There is already a constitutional cap on income tax rates in place at 10 percent.
The N.C. Treasurer’s office, led by the venerable Republican reformer Dale Folwell, has expressed that they are NOT opposed to this cap and DO NOT believe the new lower cap will affect the AAA credit rating.
What Democrats do care about are the intended consequences – they won’t be able to raise taxes, even on those evil rich people, should they ever return to power.
And the Left’s return to power on Jones Street is still a fantasy, primarily because their policies are so unpopular and their politics are hyperbolic reenactments of Chicken Little.
According to recent polls, 66 percent of North Carolinians support such a rate cap.