Anybody who has read this blog knows that I’m not happy with the Republicans running North Carolina. I think their policies are harmful to the institutions that have made the state a great place to live and made it one of the fastest growing states in the nation. I know they have embarrassed us in the eyes of the country. Today , though, I want to look at some of what they’ve gotten right, in principle if not in application.
First, the tax code needed reform. It’s been out of date for a couple of decades and Democrats should have fixed it but couldn’t muster the political will. As we’ve shifted to a more service based economy, we needed to start taxing more services. We took a bigger hit in lost revenue during the recession because we relied too heavily on income taxes. Sales taxes might be more regressive but they are more stable. My argument with the Republicans is that they should have left a progressive income tax in place and should be taxing more business services like lawyers and accountants.
Second, they’ve focused more on the struggling rural sector. Our cities are recovering from the Great Recession. Many of our rural areas have been in recession since the 1990s when trade agreements killed much of our manufacturing and changing attitudes toward smoking ended the days of big tobacco. The GOP correctly points out that too much of our incentive money has gone to urban areas that aren’t having trouble attracting business. Incentives should be in place to help lure industries to areas they otherwise might not go.
In addition, the sales tax distribution formula in the Senate budget will more fairly distribute revenue, especially if we are going to shift from reliance on income taxes to reliance on sales taxes. A lot of rural areas don’t have enough money for necessary improvements to schools, roads, water and sewer, and other infrastructure needs. Rural residents who don’t live in tourist areas tend to spend their money for a lot of necessities in larger, urban counties. With reliance on a point-of-sale system, poorer rural counties would be subsidizing wealthier urban ones.
Third, North Carolina’s Department of Transportation had for too long been a system of cronyism and political spoils. The changes that McCrory and company made may not be exactly right, but they are a step in the right direction. DOT has long history of scandals that involved DOT board members profiting off of road building projects. That system should have ended a long time ago.
Finally, the GOP has some ideas about education right but have gone about them exactly wrong–and probably for the wrong reasons. Our schools have become too burdened the tests without enough flexibility to suit the needs of a diverse student population. We need innovation in education and we need different types of schools.
However, we don’t need to cut funding for education. We need to drastically increase it. Charters could be a great tool but they need accountability and oversight because they should be more experimental. School reform should be geared toward helping students, not trying to impose free-market principles where they don’t belong.
Paying beginning teachers more is a step in the right direction but we should be paying all teachers more. We shouldn’t be satisfied with paying the national average. We should be paying among the highest wages in the nation so we can steal the best teachers from other states like they’ve been stealing from us. That’s the type of reform I want to see.
That’s about it. I probably won’t say much more nice about the GOP for awhile.
Thomas Mills is the founder and publisher of PoliticsNC.com. Before beginning PoliticsNC, Thomas spent twenty years as a political and public affairs consultant. Learn more >
Urban NC is not competing with rural NC for jobs and businesses. Urban NC is competing with other urban areas around the world. We need to do more for rural NC, definitely, but pitting it against urban areas is based on a false assumption that Sampson County and Wake County are in competition. We’re not. We should be working together.
Exactly. Those who imply that our metro areas “hurt” our rural areas are navel-gazing, small-minded, and not looking past NC borders. If our metro areas prosper and have the resources to attract businesses and families (and to help those less fortunate who always flock to urban areas), they can “lift all boats” in the state, including the rural counties. But taking sales tax revenues away from the metro counties that generate them is not the way to do it. I say it again: raise income taxes on the wealthy and corporations, and allocate revenues for job creation and development initiatives in rural areas.
“We needed to start taxing more services … we relied too heavily on income taxes… sales taxes … are more stable”? You as a claimed Democrat are jumping right on the Republican bandwagon of passing the tax burden to the poor and middle class, as outrageous income inequality continues to grow. We have our fair share of the mega-rich in NC who are not bearing their fair burdens, starting with McCrory’s sponsor Duke energy. In response to the Dan River catastrophe, the Republican state government penalized Duke a paltry fine of $90,000+ to prevent multimillion dollar lawsuits brought against them by other entities, and it was up to the feds to step in and make them pay a reasonable amount. Watch last Sunday’s “60 Minutes” program online. With a “they only want to cut off one of my legs” attitude by you and other wusses, and Heath Shuler’s going to work in DC at a million dollar salary for Duke after retiring from Congress so that he could “spend more time with his family” (cough, cough), it’s no wonder that voters do not see the Democratic party as having an alternative to offer.
Well, that was a truly meandering comment. That wagon train goes from no more specific sales taxes on the poor and middle class (missing Thomas’ point entirely), to income inequality and the mega-rich not doing their fair share, to Duke Energy coal ash (……er….well… not sure if you are for or against the utility actions, or McCrory’s actions on Duke’s behalf), to that “cutting off one of my legs attitude” remark (huh?), to Shuler becoming a DC lobbyist (something that every politician –lib or con– seems to ultimately become nowadays), to a slam of the Dems. Gotta sit down; my head’s still spinning….
These kinds of discussions are so much more helpful than the daily news programs – just read somewhere that news is more than reporting violence. Thanks to all for input.
I applied naively for a seat on the Aviation Task Force. It was announced as if there was an application process when in reality insiders were on a list and that was that.
The Connect doesn’t connect. Prosperity Zones, and places out, left out? It looks and feels like that.
Fear of interest rates and an extra Referendum? That is well designed to have only yours at the polls. -Sometime in November? Well at least you won’t need the new ID.
And it has to be a Bond. What is that about how it has to be a Bond because NC can borrow money? If the plan is so good why not taxes paying for it? Bonds work to make those with money get paid to loan the state money. They get what they want far as boondoggle gifts for their construction companies, plus return on the bonds instead of paying taxes.
Counties with Local Community Airports are more prosperous than those without. No mention of airports in connect. Landlocked out of the way rural communities without airports are not desirable since it can take awhile to get there on back roads, repaved or not.
The High Point Furniture Showrooms were perfect for soap operas. Therein the showrooms were standing sets I could make shows up for.
“We don’t want that kind of business because we’re Christian.”
Replacement for tobacco is marijuana.
It is more about what people in power think, what they believe is the right way to make a living than what they have to work with.
When the tourists and the filmmakers come the locals like to look at them, take their money, and encourage them to leave.
As I pointed out, filmmakers won’t even think about NC unless there are bribes.
“Second, they’ve focused more on the struggling rural sector. Our cities are recovering from the Great Recession. Many of our rural areas have been in recession since the 1990s when trade agreements killed much of our manufacturing and changing attitudes toward smoking ended the days of big tobacco. The GOP correctly points out that too much of our incentive money has gone to urban areas that aren’t having trouble attracting business. Incentives should be in place to help lure industries to areas they otherwise might not go.”
Pointing out something compared to actually doing something are vastly different approaches. Politicians are always pointing out while backboned individuals, regardless of their station in life, actually get things (timely, common sense, cost worthy, prudent and efficient) done.
The redistribution of money from urban to rural areas is nothing more than a blind panacea. Especially with the ongoing acrimony over the use of incentive money in the NCGA.
Thomas, you know that full well.
I agree with your first point especially that “Republicans….. should have left a progressive income tax in place and should be taxing more business services like lawyers and accountants.” I could add a whole string of other services that should be sales-taxed, too, but I do not support sales-taxing veterinary services and car repair, as the GOP will soon likely do. Taxing those services is, IMO, much too regressive. The less-well-off among us have companion animals (that they want to care for) and use older vehicles to get to their jobs (and can’t afford new vehicles). They will get hit especially hard by the new sales taxes coming soon. What was the NCGOP thinking when they chose those two services to get sales-taxed and not other services in the new budget bill??
I disagree on point #2. Keep the current sales tax allocation system. Our metro areas are growing, have more people in need of public assistance programs than the rurals counties combined, and, in a way, are the places that businesses look to locate in and/or expand in. If metro areas are generating sales tax income, let them keep it and use it—they have real needs as they drive the state’s economy forward. No doubt rural counties need help, too. So why can’t other state resources (e.g., income tax revenues) be channeled to help rural areas? (BTW, I am looking for an answer to that question, if there is one, that goes beyond the fact that the ideology-driven GOP is striving to drive down state revenues, so as to continue to starve/undermine government programs).
I am with you on point #3 and #4.
back handed compliments…
I have long thought the sales tax distribution should probably be 50/50 to point of sale/population. Allows for added infrastructure, public safety, etc of urbans, but also allows for rural counties to get some help. i would not be surprised if the proposal now winds up somewhere near that ratio; say about mid August. . . 🙂
When Democrats return to power in NC (however long that may take), I hope they learn from the complacency that helped cost them the majority. I agree with pretty much all of your points here, especially on education.
Great post. I really appreciate your ability to be objective, despite radical conservative antics in Raleigh.