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should establish a custom or, if necessary, pass a statute saying that for every new law enacted, one should be repealed, and for every new rule imposed, another rule has to go away.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.
Becki Gray (@beckigray) is vice president of outreach for the John Locke Foundation.