Did you see the new estimates on the cost of the 2013 budget?? It’s 43% higher than before, according to the Fiscal Research Division of the NC General Assembly in a memo last Thursday, 7/24/14.
The 2013 state tax cuts for the 2014 year – personal income tax cuts alone – will cost 43% over earlier estimates! Earlier estimates put the cost of NC’s tax giveaways that mostly benefit the wealthy and corporations at nearly half a billion dollars ($475 million, to be exact). New estimates from the NCGA say the actual cuts will be $680 million dollars just in 2014! $205 million dollars MORE than earlier estimates!
And it will get worse if this money hemorrhaging isn’t stopped! The cost for the 2015 tax year is also projected to be $200 million higher than original estimates for 2015 – $890 million rather than $690 million. Additional tax cuts are set to take effect Jan. 1, 2015.
And it could be worse! The WRAL article, State Tax Cut Costs Ballooning, 7/25/14, said, “According to the memo, the forecast does not account for corporate tax rate cuts. ”
But the NCGA is still in session on the budget, and they still have time and opportunity to stop the bleeding of money! They can prevent the additional tax cuts from going into effect on Jan 1, 2015, and G-d hopes that they realize they have cut too much and way too fast, and reverse some of the damage they have done for 2014.
Our lawmakers are still in Raleigh – discussing what they need to cut – the jobs of Teaching Assistants, and Medicaid coverage for the elderly, blind and disabled are still on the table. They need to recognize the disaster they created, with the revelation from NCGA analysts that it is so much worse with 43% more losses in state income. NC needs to change course RIGHT NOW!
President, NC National Organization for Women