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North Carolina
Opinion by "Americans For Prosperity Foundation"
Grading Gov Easley
By Chris Neeley
Well, the Fiscal Policy Report Card is out on America’s Governors. Our governor, Mike Easley, did not do so well.
In fact, if Governor Easley were my daughter, he would be facing some serious counseling and a little less play time.
The Cato Institute gave Governor Easley a grade of 53 on Fiscal Policy. That’s right; the governor who claims he is fiscally responsible scored a 53 – out of a possible one hundred.
The Cato Report Card on the governors stated that Governor Easley was responsible for the largest income tax rate increase enacted by a senior governor, and among the nation’s highest tax hikers on the sales tax and gas tax.
Governor Easley also scored fifth worst in spending restraint among governors, with an average government spending increase of a little more than 8 percent.
Eight percent is twice the amount allowed by the Taxpayer’s Bill of Rights amendment, which the governor should support this year.
All in all, the Cato Institute said Governor Easley’s performance on fiscal policy issues was a “mediocre first term.” I think they let him off lightly – especially when you consider the budget the governor recently proposed.
As we mentioned last week, the governor has proposed a budget that increases government spending by more than 6 percent, increases debt by 34 percent and increases taxes by $1.7 billion.
The $1.7 billion in tax increases in combination with North Carolina’s already high corporate and personal income tax rates, high sales tax and gas tax will most assuredly cost our state more jobs and an opportunity to become a leader in the global economy of the 21st Century.
Of course, we know this to be true because for the past four years our state has suffered thousands of job losses due to Governor Easley’s tax hikes of 2001.
And if you don’t believe me, just listen to Governor Easley’s chief budget guru, Dan Gerlach, who recently said, “some companies looking to relocate or build new plants cross North Carolina off the list as a result of the personal income tax.”
Governor Easley is even quoted as saying, “Our top income tax is currently the highest in the Southeast, and we have to lower it to be competitive. There are examples where this has cost us ... as far as luring jobs into the state."
Let me get this straight…the governor’s budget guru and the governor say we are losing job opportunities in this state because of our highest-in-the-Southeast income tax. Yet in his latest budget, Governor Easley offers no meaningful reduction in the personal income tax rate.
By the way, the personal income tax rate is what most small businesses pay in this state – and they make up more than 80% of the jobs in North Carolina.
So who is looking out for them and us? Not Governor Easley.
By supporting tax increases of $1.7 billion Governor Easley is basically saying to everyone, “North Carolina is closed for business.”
It does not need to be that way.
If only the governor and the politicians in Raleigh would support a Taxpayer’s Bill of Rights amendment, we could limit the growth of government, prepare our state for future emergencies or economic downturns, and cut taxes.
By cutting taxes and limiting government growth we can create an attractive business climate that will help boost our state’s economy – meaning a better North Carolina for our children.
In the meantime, you and I must take action now and let our voices be heard so that real fiscal reforms can be implemented by the politicians down on Jones Street.
Go to AFPNC.ORG and sign our online petition asking Members of the General Assembly to oppose Governor Easley’s $1.7 billion in tax increases and support a Taxpayer’s Bill of Rights amendment for North Carolina.
Your support is crucial to the future of our state – and who knows – if we can get the governor to listen and take action – maybe – just maybe – we can help him improve his Report Card grade.
Mr. Neeley is Director of Americans for Prosperity of North Carolina (AFP-NC). AFP-NC is a non-partisan organization that promotes free market solutions to improve government. To learn more about AFP-NC go to www.afpnc.org.
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