This new Civitas article discusses more reasons why North Carolina needs a Taxpayer Bill of Rights (TABOR). In short, long-term state budget trends look like a roller coaster: long, dramatic climbs followed by sudden drops. When times are good and revenue is flowing, state lawmakers aggressively expand the state budget. Then when recession hits, panic sets in as their ramped-up spending commitments become unsustainable. This panic typically results in massive tax hikes.
A more sensible alternative would include a TABOR, which would slow the budgetary growth during the good economic years and instead set more money aside in a rainy day fund to better absorb the shortfalls that accompany cyclical recessions.
Its time to ditch the wild up and down swings, and instead opt for a smoother ride that doesn’t leave taxpayers with whiplash.