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CPAC Statement on North Carolina Budget Negotiation

Today the Conservative Political Action Coalition (CPAC) sent the following statement to the North Carolina Legislature urging a clean tax cut:

 

As the impact of “Bidenomics” continues to harm individuals, working families, and small business, a proposal is being floated in North Carolina to reduce the state income tax and instead raise revenue through cannabis legalization and gambling expansion. We urge legislators in Raleigh to slow the process down to allow for greater transparency and input from North Carolinians. 

 

To be clear, CPAC strongly supports reducing tax burdens on working Americans and small businesses. Broad-based tax cuts would be welcomed to offset the pain caused by President Biden’s economic policies, the cost of which is estimated to be $433 a month on average for every family. However, linking tax cuts to either drug legalization or gambling expansion requires careful scrutinyPolicymakers must ensure that the collateral impacts of either policy are outweighed by the economic benefits of a tax cut. 

 

Fundamentally, however, we refuse to buy into the Left’s argument that cutting state income taxes requires revenue increases elsewhere. Such an approach assumes a static economic model, when even high school economics students understand revenues from organic growth can replace those lost to tax cuts. Even if economic growth does not fully “pay for” tax cuts, policymakers should first look to shrinking government to balance the books. 

 

Whether it is expanding gambling or legalizing drugs, the North Carolina legislature owes it to the voters to fully understand the consequences of such policies for families and businesses. Decisions on complex issues like drug legalization and gambling should be removed from the discussion of tax relief. They should be made in the light of day, with both an informed citizenry and experts at the table. 

 

With only a short time left in the legislative session, CPAC urges you to pass a clean tax cut without special-interest legislative riders masquerading as revenue drivers. In the event a budget is rushed through the legislature that includes drug legalization or gambling expansion, we would recommend to our colleagues at the CPAC Foundation’s Center for Legislative Accountability(Ratings) that they score a ‘yes’ vote negatively.

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