The path to prosperity: Spending cuts, no income tax and free-market schools | Eastern North Carolina Now

    Publisher's note: This post, by Bob Luddy, was originally published in the Budget & Taxes section of Civitas's online edition, and also was published in the News & Observer..

    Our state has been suffering with high unemployment and sluggish economic growth since the 2008 financial crisis primarily because of an inadequate educational system, high taxes and poor investments by state government.

    It is instructive to remember that North Carolina, devastated in 1880 from the post Civil War era, emerged in 1900 as one of the strongest economies in the South after investments by individuals and farmers created the textile and furniture industries.

    With a new governor and pro-growth leadership in the General Assembly, we now have the opportunity to reinvigorate North Carolina's economy by making bold but sensible policy changes.

    Entrepreneurial small businesses are the state's primary job creators, but we must develop the best possible environment to encourage new business investment.

    To make North Carolina the leading job creator in the country, we must:

    • Eliminate all state income taxes. An income-tax-free state will attract investment capital and high-growth entrepreneurs. Private-sector investment is critical to the growth of our economy and job creation. Reducing taxes allows families and small business entrepreneurs to efficiently allocate capital, which will grow our economy and jobs.

    • Offer school scholarships to promote choice and market-based educations. Many education reforms will be discussed this year, but nothing would improve student achievement more than market-based education. About 55 percent of the state budget is spent on education. Family-based choice would save billions of dollars and dramatically improve educational opportunities.

    • Although it might be controversial, we should consider privatizing many functions of the UNC system to make it more efficient with a goal of reduced dependence on taxpayer dollars. Students, based on means testing, would be provided with scholarships to attend public or private schools from kindergarten through college, transforming our primary and secondary schools from below average to the best in the nation. Helpfully, the charter school cap of 100 has been lifted and, this year alone, the state has applications for 161 new charters.

    • Reduce spending and unfriendly business taxes. This will allow the private sector to invest and create jobs. Agencies should become more efficient, and each year the continuing budget should be reduced by 5 percent annually. Since 2008, most businesses and families have cut their budgets and reduced debt. Now it is time for our state and local governments to make the cuts necessary so that our economy can grow and produce jobs.

    • Eliminate economic development incentives and all special programs with estimated savings in the hundreds of millions of dollar. These programs are not needed in a market economy with the elimination of income taxes. All businesses will have equal incentive to invest.

    Our state budget is riddled with special interests, government interventions and seemingly good ideas that cannot be executed well by government. The free market can and will provide the solutions when left unfettered. The state must return to its traditional role, which includes ensuring public safety and a strong jurisprudence system. North Carolina is one of the most diverse and beautiful states in the country. With the leadership of our new governor and the General Assembly implementing the right policies, we can be a model for economic prosperity.

    Bob Luddy is founder and president of CaptiveAire Systems, Inc. and a Job Creators Alliance member. He is also chairman of the Civitas Institute's Board of Directors.
Go Back


Leave a Guest Comment

Your Name or Alias
Your Email Address ( your email address will not be published)
Enter Your Comment ( no code or urls allowed, text only please )




Plant Closing: Weir Oil and Gas Shuttering Plant A Business Perspective, Business, Your Economy Famed Economist: NC Can Get Ahead of the Curve


HbAD0

Latest Your Economy

Nestlé, the largest food and drink company in the world, raised prices by a collective 9.8% in the first three months of the year as inflationary pressures increased input costs for the business.
Get ready to see higher electricity bills if the North Carolina Utilities Commission approves a requested price hike by Duke Energy Progress.
We live in times when technology is becoming increasingly important and significantly transforming how people work. Of course, when you're bringing your work into the online realm, you need to be aware of the dangers it can bring to your data.
Members of the Senate Agriculture Committee discussed the collapse of cryptocurrency exchange FTX in a Thursday hearing, during which a top regulator acknowledged that he met with former CEO Sam Bankman-Fried on multiple occasions.
Progressives across the country are working tirelessly to rewrite the history on school reopenings, claiming that it was a bipartisan effort. The reality is far different, and, in fact, progressive leaders fought to keep schools closed.
A recent survey reported massive school staffing shortages in North Carolina in August. That’s roughly 11,000 vacancies, which would impact the quality of education students receive.
RX Industries, of South Carolina, has announced the completion of its expansion in Beaufort County (SC).
Today, the U.S. Department of Education released the 2022 National Assessment of Educational Progress (NAEP) Long-Term Trend results.

HbAD1

Progressives have sought to use public schools to advance their social and political agenda for nearly a century
It has begun, and it will be a process, but know this NOW: Beaufort County Now (BCN), created by Symbiotic Networks (SNI), has evolved to a point that this online publication's most natural progression is to transition into Eastern NC NOW (ENC NOW).
N.C.'s congressional delegation urge the Biden Administration to locate the $1 billion Advanced Research Projects Agency for Health facility in the state.
America is finally waking up to the fact that poisonous, divisive ideas are proliferating in public education, from pre-K to graduate school. The question is how to push back against such ideas.
As a project manager, you are always striving to grow and prove yourself to your colleagues and superiors.
Entrepreneurs experience mental health issues that often go unnoticed. Recent studies have indicated that the majority of people in business are sleep-deprived and overworked.

HbAD2

 
Back to Top