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The Republicans who run the North Carolina General Assembly follow the same sober, mature approach to spending North Carolina tax dollars that our 30th President, Calvin Coolidge, did in Washington from 1923 to 1928.
We should be grateful.
North Carolina currently has nearly $ 4.13 billion in so-called “overcollections” flowing into state coffers, which is expected excess tax revenue due to stronger than expected economic growth during the period. COVID pandemic. When the state budget was vetoed, budgets returned to the levels of the previous year, which also helped build up unallocated reserve funds.
When combined with over $ 1 billion in the “rainy day fund,” North Carolina is in much better economic and fiscal health than many other states that have not been run as efficiently. , despite the economic upheaval caused by the COVID pandemic.
The formula for success in North Carolina led by Republicans who have controlled the NCGA since 2011 closely follows the plan laid out by President Coolidge, who was elevated to president when Warren G. Harding died of a heart attack. He followed his New England flint leanings and implemented traditional Republican principles that were sadly forgotten in Washington and the great blue states across the country.
Coolidge’s formula for success was simple: eliminate unnecessary and redundant spending first, then cut taxes second, which no Republican has done in Washington since 2001. His parsimonious approach to government is not even in the air. the same planetary system as the Biden / Socialist Democrat plan. exponentially increasing spending, increasing taxes and debt at the same time, which is the biggest dice roll America has ever seen under a president, including President Obama.
Once Coolidge and the Republicans restrained government spending, the economy grew on its own due to the tax cuts and generated more tax revenue than expected. Coolidge’s formula included further budget cuts each following year, which allowed more money to be spent in the private sector, which generated more economic growth and subsequent excess tax revenue to Washington. Coolidge and the Republican Congress passed annual tax cuts to continue the upward cycle of additional tax revenue due to economic growth, more budget cuts, and other tax cuts each following year.
Under Coolidge’s leadership, the federal budget was in surplus every year from 1924 to 1928. The top tax rate was cut in half to 25% and federal spending was cut by more than 40%. The federal debt has been repaid by more than 30%. Unemployment for all Americans hit a record low of 1.8% under Coolidge.
Since 2011, Republicans who controlled the North Carolina General Assembly have followed similar traditional Republican policies. They established a flat tax rate, now reduced to 5.25%, for individuals, and reduced corporate tax rates by almost 70%, which allowed more than $ 2 billion to remain with its rightful owners, the taxpayers of North Carolina.
With increased economic growth, they repaid $ 3 billion in unemployment insurance loans to the federal government, which had accrued under former Gov. Beverly Perdue, in less than two years. More than $ 1.4 billion in direct disaster assistance has flowed directly into reserve funds for victims of losses from Hurricanes Florence and Dorian.
With more than $ 4 billion in reserve, the North Carolina General Assembly could continue the cycle of suds, flushes, budget cuts, and tax cuts that President Coolidge enacted from 1924 to 1928 to bring about rapid economic growth and prosperity in North Carolina for decades to come.
Republican leaders in the NCGA are expected to use this cushion in the reserve fund to continue lowering income tax rates and possibly eliminating personal and corporate tax rates. North Carolina would become an economic nuclear reactor for the 21st century, while Texas and Florida are already on the cusp of zero-tax states.
Treasury Secretary Janet Yellen calls on countries around the world to raise corporate taxes to match the higher rates President Biden wants to install and avoid “the race to the bottom,” as she called the rates lower.
Silent Cal would argue precisely the opposite. North Carolina should continue to follow suit.
