Tax Cuts Sets State Up for Deficits Again

The Republican Senate Majority is proposing $900 million in tax cuts, and reference the lack of tax cuts for sixteen years. We will remind people those who fail to appreciate history are doomed to repeat it. In 2000, when tax cuts were instituted, removal of the upper tier income tax, realignment of Commercial and Industrial taxes our state faced a decade of structural deficits.

The use of the tobacco endowment to balance the state budget is a huge injustice we will never be able to recoup. Tax cuts are less revenue pure and simple in budgeting it is can a revenue expenditure. Tax cuts pick winners and losers and create structure holes in the budget.

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