Post by Logan on Jan 17, 2016 2:22:39 GMT -6
Well, what about that? Arthur Laffer was right about supply-side economics: Cut taxes, spur the economy and tax revenue goes up.
That, at least, is the story North Carolina’s Republican leaders will tell in this election year. They cut personal and corporate income taxes, and General Fund receipts for the first six months of the 2016 fiscal year (July to December) have increased by $588 million or 6.1 percent over the same period a year ago.
But that is only part of the story. The tax changes approved by the Republican-led General Assembly and Republican Gov. Pat McCrory also expanded the sales tax. What’s driving the revenue increase is more people working – largely an effect of the national economic recovery – and people paying more in state sales tax.
The other story that the revenue numbers tell isn’t about a revenue surge. It’s about a shift in the tax burden. To see the shift, it helps to compare not year over year, but this fiscal year to the 2013 fiscal year, a year before the tax changes took hold.
Continue reading at www.newsobserver.com/opinion/editorials/article55101605.html#storylink=hpdigest .
That, at least, is the story North Carolina’s Republican leaders will tell in this election year. They cut personal and corporate income taxes, and General Fund receipts for the first six months of the 2016 fiscal year (July to December) have increased by $588 million or 6.1 percent over the same period a year ago.
But that is only part of the story. The tax changes approved by the Republican-led General Assembly and Republican Gov. Pat McCrory also expanded the sales tax. What’s driving the revenue increase is more people working – largely an effect of the national economic recovery – and people paying more in state sales tax.
The other story that the revenue numbers tell isn’t about a revenue surge. It’s about a shift in the tax burden. To see the shift, it helps to compare not year over year, but this fiscal year to the 2013 fiscal year, a year before the tax changes took hold.
Continue reading at www.newsobserver.com/opinion/editorials/article55101605.html#storylink=hpdigest .