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The general assemble can actually bring more money in by lowering taxes. Think of it this way. If the state raised taxes to 100% how much revenue would the state bring in? Zero, because nobody would do anything productive if their take-home is nothing. Conversely if the state sets the tax rate to 0% the revenue it collects will also be zero. By plotting all possible tax rates on a curve you can see that there are 2 tax rates that will yield the exact same revenue to the state, except for the one point where the state can collect maximum revenue. This is the point we should be trying to get to. See the Laffer curve: Laffer curve - Wikipedia, the free encyclopedia
I’m saying we were to the right of the maximum revenue point where if we lower the tax rates we get closer to maximizing tax revenue. Are we at the maximum revenue point now? We won’t know for another year or so.
My overall point is, higher taxes does not mean higher pay for teachers and state workers.
OMG the Laffer (LAUGHER) curb has been discredited for 40+ years now. It is a theoretical POS that doesn't take the non-payers into account, as well as the differences in income, disposable, non disposable.
But the biggest laugh is that Laffer does not understand that DEMAND is what drives business, not excess Capital, Only when people have money to buy stuff, does the demand go up, jobs are created, and wages increase, and then and only then does more tax money come in.
When rich people have extra money, but there is no demand for the stores they own from the 99% have nots, they do not just sit around and say, "well, we have $40 million extra, lets hire a bunch of folks." It just does not work that way.
Try a better source than Wiki next time.
Crap, I sat by a hot girl in economics and fantasized about her repeatedly, and still figured out the fraud, both intellectual and financial, of Laffer. I think even Ronald Reagan eventually dumped it.
the solution is obvious. Slash government handouts.
We don't see eye to eye (politically) very much, but you are spot on.
If the people of this state knew how much money was being handed out to the lazy and uneducated they would probably vomit.
Medicare, drug treatment programs, family counseling... this list goes on and on and people abuse the programs to the EXTREME. And that goes for the providers too, most of whom I consider to be legalized crooks.
But my own party considers the abuse as an obligation of the people. Meanwhile, smart and capable kids go into extreme debt to Uncle Sam when they get a college degree. Yeah, we are pretty much screwed at every corner.
We don't see eye to eye (politically) very much, but you are spot on.
If the people of this state knew how much money was being handed out to the lazy and uneducated they would probably vomit.
Medicare, drug treatment programs, family counseling... this list goes on and on and people abuse the programs to the EXTREME. And that goes for the providers too, most of whom I consider to be legalized crooks.
But my own party considers the abuse as an obligation of the people. Meanwhile, smart and capable kids go into extreme debt to Uncle Sam when they get a college degree. Yeah, we are pretty much screwed at every corner.
If he does, anyone with a child better homeschool or move. Teachers will be leaving en masse. Doesn't help that nobody is enrolling as an education major in NC colleges/universities anymore. They'll either have to pay to keep the teachers they have or pay even more to brainwash...I mean, convince people into relocating here.
Location: The place where the road & the sky collide
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Quote:
Originally Posted by netbrad
Maybe we should raid the education lottery fund like Perdue did? That was acceptable for a budget shortfall right? 'Cuz Democrats? Also I got a tax break (and I bet you did too) but I am not a billionaire. John Edwards and the other millionaires at ProgressNC got a break too but they aren't Republicans so they get a pass. Oh, and Soros money in NC politics is OK but not Pope's.
That about covers it right?
I said that this would happen & it did. All anyone has to know is what happened to NJ when Christie Whitman passed her big deal tax cut. The wealthy get windfalls & the rest do get a tax cut which is, basically, peanuts.
A correction is in order. A 3% error will only compound over time. Fix it during the next leg. session.
I used to work in the budget division of a large area of the state, and actually 3% is considered very accurate, considering all of the wild hair expenses that can crop up.
"It's not realistic to assume that teachers and state employees will never receive another pay increase, that the number of students in our schools and colleges will not increase as the state's population increases or that our state buildings and technology infrastructure will never need repair or update"
This is not a "Disaster" by the legislature, it's a plan.
1. First and foremost, destroy public education by starving it of resources and then blame them for failure in order to divert more public money to private (mostly church run) schools that will teach children "the truth" instead of science.
2. Crumble the infrastructure so you can sell it off for profitization. This way the costs of these services can then be paid for on a pay to play basis. This is a much preferred funding model for the super rich who resent "paying more than their fair share" despite the fact that they get rich by making more than their fair share and almost always on the backs of people making much less than their fair share.
3. Starving the state government will "prove" that big government can't work and ultimately push more and more costs to local communities which with either thrive or crash because of it.
4. When local communities have to raise property taxes, sales taxes, users fees, etc. to make ends meet, these same neo-cons will be outraged towards "liberals raising their taxes" so that they can then pursue the very same agenda at the local level in their respective communities.
5. Following this strategy to its logical conclusion will result in a society of financial winners and losers with a lot of people treading water in quicksand.
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