Is the legislature already raising our taxes?

Posted by David N. Bass at 09:47 AM

Those who have followed state and federal government for any length of time will recognize the following scenario.

A state agency asks for a budget increase of 10 percent. The legislature gives it a 5 percent increase. Bureaucrats in the agency then claim that the legislature has cut their budget by 5 percent, even though in reality the legislature has increased their budget by 5 percent. So, somehow, an increase becomes a cut.

I was reminded of that fallacious logic by a vote in the N.C. House yesterday approving a measure that prevents the gas tax from falling to 27.9 cents next month (the current rate is 29.9 cents). The House voted to make that rate a minimum, suggesting that further hikes are down the pike.

But the real point is this -- if a budget increase of 5 percent for a state agency can be viewed as a budget cut, because the agency didn't get everything it wanted, then maybe not lowering the gas tax can be viewed as a tax increase, because I would much rather pay 2 cents less per gallon.

Something to ponder.

HT: Jon Ham

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