Fitzsimon File

The taxing gubernatorial campaign

Wednesday, October 1st, 2008

By Chris Fitzsimon

The last 34 days of the most hotly contested gubernatorial campaign in a generation isn't going to be pretty if the last few days are any indication. Lieutenant Governor Beverly Perdue complained recently that Charlotte Mayor Pat McCrory has been "whining" about crime, and she made the remarks at an appearance in Charlotte, McCrory's hometown.

A recent Associated Press story about the campaign said McCrory "argues Perdue is part of the reason people don't trust their government to efficiently build roads and provide other services."

A whiner versus a politician who is part of the corrupt establishment? That's what the candidates want us to believe about each other and it is likely the rhetoric will go downhill from there.

Just as troubling is the fact that the candidates to be running for office in a parallel universe where things are very different than they are in North Carolina in 2008.

McCrory has signed the absurd no new tax pledge as part of his campaign, as he pointed out in the September issue of NC Magazine published by the North Carolina Chamber. Legislative leaders are now saying privately that the state will face a shortfall next year that could approach $2 billion, roughly ten percent of the state's operating budget.

More than 75 percent of that budget funds education and human services, areas that would have to be cut significantly if the next governor is not willing to considering raising new revenue. McCrory also wants to end the transfer from the Highway Trust Fund to the General Fund—that adds another $145 million to the shortfall.

He also says he wants to reduce the state personal income tax, corporate tax, and eliminate the estate tax, though at least he doesn't put a timetable on those plans. McCrory pledges more funding for the state court system to lock more people up and keep them behind bars longer, which means building new prisons and jails.

It's not clear where that money would come from unless we are talking about cuts of 15 percent to education and child care and mental health, except McCrory has recognized that the mental health system may need more resources, not less.  So maybe cuts in education and other human services would be 17 percent or more.

McCrory could not present a balanced budget to the General Assembly without tax increases unless he was willing to propose devastating budget cuts. And despite his no tax pledge to appeal to the hard right of his party, McCrory has supported tax increases before, most notably the local sales tax increase in Charlotte that pays for the light rail system in the city.

Perdue spends a lot time in the parallel universe too. She told the Chamber that she is committed to "decreasing the tax burden on small businesses," though it is not clear by how much.

She continues to push her proposal to provide free community college tuition to every qualified student and expand health coverage for children and low-income parents, certainly worthy ideas but proposals that seem wildly unrealistic in light of a $2 billion budget hole and a commitment to lower taxes on small businesses.

Somebody needs to mention to Perdue and McCrory that this is 2008, not 2004. The state budget picture has changed a little in the last year and they might have heard that things aren't going too swimmingly with the national economy either.

Enough with the talk about whining and claims of ties to corruption. And it's time to ease up on the pledges not to raise taxes and the promises to cut them while increasing funding for other state programs. We can add and subtract and know that doesn't make sense.

Come back to reality and tell us what you will really do if you are elected. 

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