Wall St. Journal Praises NC’s Budget Deal

“North Carolina ranks tenth on the Tax Foundation’s 2021 state business tax climate index, and these reforms will make it even more competitive.”

Raleigh, N.C. — In an editorial published yesterday, the Wall Street Journal praised North Carolina’s budget deal.

Below are excerpts. Read the full editorial here.

A Tax Cut for the Tarheel State

Democratic Gov. Roy Cooper heeds the message from Virginia.

Democrats in Washington are ignoring the party’s November election defeats, but the impact has been more salutary in the states. The latest example is North Carolina, where last week Democratic Gov. Roy Cooper signed a significant tax cut for individuals and business.

. . .

States are flush with revenue from strong nominal GDP growth and the deluge of federal largesse. North Carolina has an unreserved cash balance of $8.55 billion, and legislators are wisely returning some of it to taxpayers. Most states are making the mistake of building in new structural spending burdens that will be difficult to shrink in the next recession.

. . .

Republicans won an increase in eligibility and funding for Opportunity Scholarship Program grants that will give parents more educational options for their children. The deal increases the maximum scholarship to [more than] $5,200 from $4,200, and families that earn 175% above the income threshold to qualify for a free school lunch will be eligible. It had been 150%.

The North Carolina budget is an example of bipartisan compromise that would be possible in Washington if President Biden tried to govern as he campaigned instead of bowing to the left at every turn. But the GOP victories in Virginia and beyond are already paying dividends around the country.