– Leah Byers
State Treasurer Dale Folwell announced today that North Carolina received AAA bond ratings from all three major bond rating agencies. North Carolina is one of only 13 states with that distinction.
This is important news for North Carolina taxpayers because the high bond ratings allow the state to borrow money at lower interest rates. The rating agencies cited North Carolina’s strong economy and conservative fiscal management as justifications for the continued high ratings, according to the treasurer’s statement.
These recent ratings are especially significant because they were issued after the General Assembly approved a series of constitutional amendments that will come before voters this November. If approved, one amendment would lower the state’s income tax cap to 7 percent from its current level of 10 percent.
Critics of that amendment insisted that lowering the cap would have a negative impact on the state’s bond ratings.
Today’s confirmed AAA ratings from all three major agencies are indication enough that they do not believe lowering the cap would have a negative impact on the state’s financial health. But one agency, S&P Global Ratings, even went as far as to clearly state that they “… do not expect voter approval of the reduction to have a rating impact.”
Lowering the tax cap is needed and has widespread support among North Carolina voters. The Left clearly does not want to limit the capacity for big government taxation policies, but it looks like one of their major arguments against lowering the tax cap just fell flat.