Like most in North Carolina, my family has been preparing for Hurricane Florence. I’ve got everything from glow sticks, to glow in the dark pajamas to peanut butter and crackers. This blog was difficult to write this week only because my thoughts are on the storm. My favorite history teacher told me that there are only a few rules or axioms in history. One is that war costs money. I think we should declare our own axiom of history, natural disasters cost money.
While federal dollars play a role in disaster relief, there are still road repairs and other costs that are handled by the state. For the most part, this is handled by a rainy day fund. However, what happens to that rainy day fund if we cut North Carolina taxes through the new amendment? I’m not an economist, but without taxes exactly how do we pay for significant expenses?
Hurricane Matthew cost North Carolina approximately 4.8 billion dollars. Federal help was slow and not sufficient. Our own state legislature had to allocate disaster relief. This means we had to spend our rainy day fund. That in itself is fine. That is what the fund is there for in the first place. However, how do we replenish it with a tax cap?
Renee I’m sure will have a very deep analysis of all the amendments. However, while the threat of Hurricane Florence is emanate take a moment and think. Think how the tax cap will hurt North Carolina and potential disaster relief efforts if it is passed. The tax cap amendment is just plain bad economics.
On a more personal note, we here outside the cone of uncertainty are thinking of those who are not. Share a loaf of bread or a bottle of water. Be kind to one another and be safe.