How are the mouth-breathers on the left handling the Republican electoral onslaught? By trying to scare Republicans into abandoning principles that have brought them — and the nation — incredible success over the last three decades. Take tax cuts, for example:
THAT is from a recent headline in The Politico — the bible of the DC establishment. Kansas Gov. Sam Brownback (R) got beat up with stories about projected revenue shortfalls for state government while he was trying to push through tax cuts. He ran for reelection this year and had a closer than expected victory. Of course, the media and the establishment pinned the closeness of the race on his determination to cut taxes. Look how RED Kansas is, we’re told.
(I have friends from Kansas who have enlightened me with stories about the squishy moderates who dominate the party out there. Kathleen Sebelius — of ObamaCare fame — got elected governor thanks in good part to RINOs back-stabbing a conservative GOP nominee for governor. Remember, this IS the state that gave us Pat Roberts, Bob Dole, and Nancy Landon Kassebaum.)
Here’s a pretty good rebuttal to the drive-by media-driven spin that tax cuts — like those in Kansas — are BAAAAAAAD. There is ALL KINDS of evidence out there showing that tax cuts produce an increase in revenues.
They tried the same trick against Ronald Reagan in the 1980s. Reagan got his cuts through, but the Democrat-dominated Congress was not interested in cutting back spending. Despite all that, those tax cuts are credited with significant but partial responsibility for producing the economic boom we saw in the 80s and 90s.
They failed to smear Reagan. They failed to get Brownback. Now, the SAME nonsense is being geared up in our state capital. The N&O has belly-ached about a multi-million dollar revenue shortfall. Blinkin’ Chris just about burst a blood vessel spewing similar bovine defecation on NC Spin this weekend.
In this Charlotte Observer piece, you get a lot of hysterical spin about the “shortfall” supplemented by some more defecation-spewing from a Democrat hack, and then some input from someone who actually has a bit of credibility on financial matters in the public and private sector:
Through two months of this fiscal year, revenues coming into state coffers are about $50 million short of state budget projections and $200 million lower than the same two months in 2013.
But the state’s newly installed budget director, Lee Roberts, said it’s too early in the fiscal year, which began July 1, to make sound projections on how revenues will look when lawmakers return to Raleigh in January.
A report from the Office of the State Controller shows state revenues decreased by more than $200 million in July and August when compared to the same period in 2013. Tax revenues decreased by $134 million, or 4.6 percent, while nontax revenues, such as judicial and other fees, decreased by $66.1 million, or 35 percent, according to the report.
The sharpest decline came in personal income tax receipts, down nearly $226 million, or 13.5 percent, over the same period last year. The decrease is likely the result of income tax cuts made by the General Assembly, along with federal tax changes and other factors. Franchise tax receipts also dropped, while corporate income and sales tax revenues increased in those two months over the same period in 2013.
Roberts acknowledged that state tax revenues are lower than last year through two months.
“We had comprehensive tax reform that was designed to save taxpayers money,” he said.
But, Roberts noted, comparing revenue totals to the previous year isn’t especially meaningful, given that the state budget reflects the projected effects of state and federal tax changes.
Revenues for the first two months are about $50 million shy of current year budget projections, he said. The state received about $2.91 billion in revenue through August, compared with $2.96 billion budgeted for the two months. That means revenue is about 1.7 percent behind projections. Such numbers, two months into the fiscal year, “just don’t tell us anything one way or another,” Roberts said.
Roberts countered that forecasting revenues over a full fiscal year after two months is “impossible.” He said July and August are historically two of the slowest months for receipts and that September would be the first month the state would receive quarterly estimated tax payments from taxpayers.
Asked whether he was worried about revenue, Roberts said he didn’t have enough data to say one way or another. “If we are materially short, then we’ll have to start thinking about what that means for spending,” he said.
So, Blinkin’ Chris and his comrades babbling about tax cuts killing our economy and hurting state government really don’t have enough info to be making such assertions? *What a shock.*
More spending, less cash is a recipe for disaster. (Some of you may have learned that already during the recently-completed Christmas shopping orgy. ) The *conservative revolution* in Raleigh needs to follow through with some belt-tightening and spending cuts — to go along with those tax cuts — so we don’t get into a real mess.
North Carolina Republicans need to recognize that the Left is telegraphing its meme for 2016 — “fiscal responsibility.” *Yeah, this is the same crowd that brought us inflation, stagnation and The $2 million intern. *
Raleigh Republicans have a real chance to sell the idea of limited, smaller government to the people. Back up the tax cutting with smart, sensible spending reforms. (Cutting taxes, but piling on new regulations and more spending defeats the purpose.) Put more money back into people’s hands so they can make the smartest, most appropriate choices for their own families and futures.