Great News for NC: Revenue Forecast Remains Strong Thanks to Conservative Policies
The General Assembly's Fiscal Research Division and the Governor’s Office of State Budget and Management on Monday announced a projected $6.2 billion revenue increase over the two fiscal years of the 2021-23 biennium. This is a 10.8% increase above what forecasters had previously expected.
Despite national headwinds and uncertainty from the Biden administration’s reckless policies that have led to runaway inflation and record high gas prices, North Carolina remains in a strong economic position thanks to the Republican-led General Assembly.
In response to the projected surplus, House Speaker Tim Moore (R-Cleveland) and Senate Leader Phil Berger (R-Rockingham) said, “Today’s forecast highlights the General Assembly’s winning formula of low taxes, reasonable regulations, and responsible spending. Our state continues to experience growth and record-breaking economic development coupled with regular revenue surpluses.
"While this is promising news, we must be cognizant of the national economy and the precarious position the Biden administration has put the American people in thanks to rising costs and runaway inflation. It is crucial that we continue on this track of responsible and disciplined spending in light of the potential for a recession as we begin the short session budget process."
The large increase in budget revenue occurred in conjunction with historic tax cuts and reform from the Republican-led General Assembly. Over the last decade, the Republican-led legislature has lowered the personal income tax, reduced the corporate tax, simplified the business franchise tax and drastically increased the standard tax deduction for working families.
While Governor Cooper and Democrats predicted the tax reductions would lead to a huge budget shortfall and fiscal crisis, it has actually led to record surpluses, savings and investments – helping ensure North Carolina is financially prepared for future economic downturns.