Whose Laffing now? The N.C. state budget surplus is projected to be on the order of $1.1billion. From a memorandum by the Fiscal Research Division of the N.C. Dept. of Revenue:
The estimated revenue surplus for the current year has risen from $875.0 million to $1, 135.1 million, an increase of $260.1 million over the February forecast.
There is no need for the temporary taxes to remain. In fact, the Laffer Curve has been proven correct time-and-again — that is, cutting taxes from a certain point increases state revenues, which is probably why the quarter-percent tax cut of Dec. 1 has helped to return this surplus. Let’s not forget the President’s tax cuts, which have reduced the deficit and fueled the economy. (Say what you like about Bush. On this he did something right, here.)