In case you have ever wondered what the State of North Carolina does when there is a budget surplus, you need wonder no more. We have already seen it before and are about to see it again. The state is projecting a $1 billion dollar surplus yet again. That means that the taxpayers are being over taxed by $1 billion each year.
Common sense would dictate that the state could lower the tax rate to cover the cost of government. Is that going to happen? Of course not. The state is instead going to RAISE taxes. The John William Pope Civitas Institute has a report out about the cost of government. There are some key points in the report.
1. There is "an alarming trend of rapid growth in state government spending. General Fund expenditures are up 7.6 percent from FY2006-07 and 41 percent since FY2002-03."
2. "In spite of another budget surplus in excess of $1 billion, the House budget extends these [temporary]taxes enacted in 2001" a THIRD time.
3. "This year's version of the House budget also includes more than $94 million in new "hidden" costs for North Carolina's citizens in the form of:
· Fee increases, most notably on the insurance industry
· Corporate welfare, i.e. economic development
· Targeted tax breaks"
4. "The House budget includes a number of fee increases that will impact hard working North Carolinians. The total price tag of these is roughly $28 million"
Who pays for all of these increases? WE do. Here we are with continued, unnecessary taxes and we are going to have an increase in spending, plus even more taxes. Each surplus year, we never get our tax money refunded. We don't even use the overage to pay down government debt. Instead, we get higher taxes and increased spending. Make no mistake. Legislators in Raleigh are just as bad as those in the federal government and want to spend just as badly. Productive citizens pay the price.