So, I've been going through the Fitz files and found a great Election Year Myths post. The tax myths that caught my eye below the fold, you really must read this.
p.s. I really tried to find a photo of him, but he seems elusive...like a ninja.
Myth number one. The 2006 General Assembly spent all of the $2.4 billion budget surplus. This one comes to us from many Republicans, including Pittenger who repeated the claim in his newsletter Wednesday.
The General Assembly did not spend all of the surplus. The Budget and Tax Center reports that almost $550 was set aside for savings, including $323 to the state’s Rainy Day Fund. Another $388 million was used to pay for tax cuts, including a ¼ percent reduction in the state sales tax and the income tax rate on the state’s wealthiest taxpayers. That is almost $900 million that was either saved or returned in tax reductions.
Myth number two. Tax rates in North Carolina are hurting economic development. Pittenger said this too, but he is far from the only one. In fact, this myth has taken on a life of its own and is repeated across the state by legislators of both parties and corporate lobbyists.
Just last week, Forbes.com rated North Carolina as the third best state for business in the nation and the best in the Southeast in terms of the cost of doing business. Repeat after me, tax rates are not hurting economic development.