Why North Carolina Got The Highest Grade On Cato's Fiscal Report Card | Eastern NC Now

    Publisher's note: The author of this post is Nicole Kaeding, who is a budget analyst at the Cato Institute. This article was posted on Carolina Journal, John Hood Publisher.

    In less than two years, North Carolina's governor and legislature have helped to revive the state's economy. The economy is growing and adding jobs, improving the well-being of North Carolina residents.

    Governor Pat McCrory took office in January of 2013, joining a Republican legislature. For the first time since Reconstruction, North Carolina's executive and legislative branches were controlled by Republicans, and they had a large mandate for reform. In 2011, the state's economy grew at an anemic 0.3 percent. It was well below the national rate of 1.6 percent and one of the lowest in the Southeast. The state's growth lagged many of its peers in 2012 as well. Individuals wanted change.

    The new government took action to repair the state. The biggest item on the agenda was tax reform. McCrory and the legislature's plan passed one of the most impressive tax reform packages in any state in years.

    In totality, this package puts North Carolina on a pro-growth trajectory with a low, broad tax structure. The reforms will vault North Carolina from 44th to 17th in the Tax Foundation's State Business Tax Climate Index. All told, these tax cuts reduced the burden of taxation on North Carolina residents by $700 million annually, or 3 percent of state tax revenues.

    For his efforts, Governor Pat McCrory received an "A" in the Cato Institute's newest edition of its "Fiscal Policy Report Card on America's Governors." The report card assigns grades of "A" to "F" to the nation's governors based on their efforts to restrain government and cut spending. McCrory tied for the highest score of any governor.

    Under the leadership of Governor McCrory and the state legislature, North Carolina is poised for economic success. Limiting the growth of spending and passing tax reform is putting the state on a path of fiscal responsibility.

    Read it all here.