Right policies, right path
Published February 13, 2014
By Becki Gray
by Becki Gray, John Locke Foundation and NC SPIN panelist, February 13, 2014.
Ideas drive public policy. During the last couple of years, North Carolina has begun to implement sound ideas to reform taxes, transportation, regulation, energy, education, Medicaid, and more. Good policy leads to more economic freedom, and that leads North Carolina in the right direction.
Despite what you’ve heard from the Left, the average household in every income group will pay lower state taxes in 2014. With the 2013 tax cuts, every North Carolinian’s personal tax rate goes down and is flat — 5.8 percent in 2014; 5.75 percent in 2015. Low- and middle-income households get a $300 million tax cut.
Under most tax reforms, special breaks are eliminated and overall rates are lowered. We got a good start on that in 2013. But more can be done. Savings and investment should be encouraged and should be tax-free activities.
Children are human capital, and costs associated with building that capital (raising children) should be tax-free as well. The more we invest effectively in our children, the more productive they will be as adults. We should expand the per-child tax credit.
Here are some other ideas that can keep North Carolina on the right path:
• We have too many rules. In addition to 20 volumes of North Carolina laws, there are more than 20,000 rules in the N.C. Administrative Code. The General Assembly should establish a custom or, if necessary, pass a statute saying that for every new law enacted, one should be repealed, and for every new rule imposed, another rule has to go away.
• We also need a “Rule Hotline” letting individuals and businesses give rulemakers feedback on how a particular rule is working. With so many rules currently in place, sometimes the only way to keep track is for those directly affected by the rule to speak up.
• Energy prices are regressive. Those who make less money pay a greater percentage of their income in energy costs. Shouldn’t we offer the lowest-cost and most efficient energy rather than giving taxpayer-funded breaks to some — primarily to renewables like wind and solar? Forcing expensive energy costs harms low-income consumers the most.
• We can pay teachers more, but they should be rewarded for their performance. Principals ought to be able to manage their staff, identify without bias who brings the most value to students, and let teacher pay reflect results in the classroom. Local flexibility would allow each district, each school to manage specific needs.
• Charter schools and vouchers give families flexibility and choice to find what works best for them. Competition also will improve district schools, helping all students.
• Common Core may be OK for the rest of the country, but our kids deserve something better that’s tailored to our needs. Our kids should get the highest standards, the richest curriculum, and total accountability. Common won’t do; we need a Carolina Core or nothing.
• Medicaid needs to be reformed because it is a wasteful, inefficient, ineffective delivery service for health care to 20 percent of North Carolina’s population — our most needy — poor, disabled, and young. Health outcomes are terrible and are declining. Unforeseen cost overruns lead to consistent budget problems, crowding out other needs. Medicaid is 17 percent of our state budget and the fastest-growing part of the budget. Reform is critical; expansion is irresponsible.
• State government should privatize services if the private market can offer lower cost and better service. Which ones? If you can find it in the yellow pages, government probably ought not be doing it.
• Redistricting for congressional and legislative election districts should be taken out of the hands of the legislature. Rules should be implemented, and an independent commission should assume responsibility for drawing the districts. It was a good idea when Democrats were in charge; it’s a good idea now that Republicans are in charge.
Neither likes it when the other draws the maps. Forming an independent commission now would be an insurance policy against partisan gamesmanship in 2021.
• Some rights are important enough to warrant protection in the state constitution. The right to work, a Taxpayer Bill of Rights, and additional eminent domain protections should be added to our constitution rather than in a statute that could be changed at the whim of a legislature.
February 13, 2014 at 10:40 am
Alan Ferguson says:
Ms. Gray:
I disagree with nearly everything you said, but there's not sufficient space here to chat about it. So let me just address your very last point, suggesting additional constitutional protections against eminent domain.
The Republican party has now essentially run the state for going on four years. Collectively, it regularly blasted the Democrats for frustrating its efforts at further restricting eminent domain. And yet in the last session of the legislature, with the Judicial, Executive and Legislative branches of government in its control, once again a proposal to allow the public to vote on the matter died a quiet but sure death in the legislature. Can you explain what happened here?
And why is this particularly notable? Because, more than any other you highlighted here, the Republican turning away from this issue illustrates the real motive behind its support of your theories. It is in power in Raleigh to carry the water for the Chamber of Commerce element of the population. The economic development mafia there are frightened that a tightening of eminent domain to specifically forbid a taking for ED purposes with get out of hand. The kind of crony-capitalism upon which they thrive(which your organization formerly railed against before the Republican Party took power in North Carolina) might become much more difficult without ready access to the incentives and assorted ED slush-funds, which your group also formerly complained about when that patronage was controlled by the wicked Democrats.
No, like your and the legislature's attacks on free public education (which is mandated by our Constitution), the Republican unwillingness to restrict eminent domain shines a light on the real purpose of the policies you favor--to make the state a better, happier, and safer place for the wealthy and the well-placed among us.
February 13, 2014 at 7:44 pm
Norm Kelly says:
Tighter restrictions on, better definition of, more openness about eminent domain should be the first thing on the list. What's the major difference between the US and MOST other countries in the world? Private property rights. (of course, the rule of law has always been high on the list as well. but since his high holiness was anointed it seems the rule of law is less important. perhaps if he didn't spend so much time high...) Private property rights are absolutely critical to freedom. There should be a constitutional amendment in this state to protect private property owners from over reach by government and idiotic, bogus, anti-Constitutional decisions from the Supreme Court. When the Supreme Court ignores the national Constitution, it's important that our state Constitution have the right wording to protect our citizens. It matters, but not as much, what other states do and how they treat private property rights. But why shouldn't our state lead the country on this issue? Why should we follow? Why not get it done now?
Overall, the content of this post is right on the money. If it can be found in the yellow pages, the state ought not be in that business. Let's start with the ABC fiasco. For what reason did the Republicans pass on selling off these stores? For what reason can anyone continue to justify the state being in the alcohol sales business? For what reason can anyone continue to justify the state preventing private business competition? What does the state gain by continuing to be in this business?
Education competition is also a big one to take on. Big education is too comfortable. The education establishment needs some competition to get it back on track. When families get to choose the school they go to, when the parents get to pick the school that fits their child's education needs best, the result will be a better education system for ALL students. What's the most important agenda items on big educations list? Teacher pay. Smaller class sizes. More money. More teacher aids. More money. More supplies. Unlimited resources for new/ever changing technology. More money. Oh, and fewer tests for the kids so the teachers can concentrate on teaching. More money. What would happen to the education establishment if they had real/actual competition? Chances are excellent that big education would change their priority list. I expect more money would remain on the list, but educating kids would certainly move up the list.
