Legislators must improve the environment for job creation and a strong state economy, but they must not directly create jobs by growing government or by handing out direct incentives. Government growth and distributed wealth do not lead to a stable and prosperous economy; history is our witness.
The environment for job creation only thrives with a low tax burden. Low taxes at the gas pump, low personal income tax, and low corporate income tax.
Lowering the tax burden requires government to focus on its constitutional responsibilities and essential roles.
Once government has the proper perspective of its role, then spending can be cut from those areas outside of the government's responsibility. This approach will lead to the ability to lower the tax burden for all citizens of this State and initiate economic growth.
The current tax structure works to penalize productivity and choke economic growth. As a result, I am open to a serious discussion on North Carolina Tax Reform. It is not only important to lower the overall tax burden but to do so in a way that is economically sound. Legislators must consider the psychology of the free market when rewriting the tax code and strive to promote and not hamper the will to produce, invest, and hire. Tax Reform in North Carolina would put this State in the driver's seat to a strong economy.
A strong economy only exists with proper and limited regulation. North Carolina has a serious problem with unnecessary regulation. State regulations and the regulatory process which you have to follow to work in North Carolina have grown to oppressive levels. Regulations are constantly growing and changing as regulatory policy evolves both inside and outside of State Statute Law.
A balance has to be achieved between economic growth and regulatory protection. As it currently stands, the regulatory red tape in this State is so thick that even in a better economy, I am confident that North Carolina will still be restricted from growth due to unnecessary regulation. The Regulatory Reform Act passed last session was a good first step in reigning back regulation but this State needs to continue along the path of regulation reform.
Further Reading: Jobs & The Economy
In regard to the state of our economy and the current job situation in North Carolina, there is no question that we need to reflect back on the past, learn from the missteps, and correct the course. A majority of the leaders of this country, and of this State, have lost perspective of the proper bounds of government and the sanctity of the free market. Government intervention inside the free enterprise system is extremely harmful; while limited government oversight and protection of private property outside the free market is essential. This important distinction is imperative to the economic prosperity of our nation, North Carolina, and the individual. Most of what we groan about in this economic environment is simply due to government intervention in the free enterprise system.
The solution is simple and effective; government must get out of the way and be put back into its proper place. Government has a role, but a limited one. Even when the intention is good, government that grows beyond its proper role becomes oppressive and harmful to the citizens it represents.
Government intrusion inside the free market must be eliminated. This restraint will result in truly free trade, where government intervention does not distort the market and create economic uncertainty.
Direct government incentives are an example of the harmful role government plays inside the free market. Direct incentives mean that government takes public money from the pockets of taxpayers and puts it in the hands of private companies, granting unfair advantages to those companies who "create the most jobs" and stacking the deck against other business fairly striving for growth. The answer to incentives is for legislators to "create the environment for growth", not "create jobs", by funding the essential role of state government and reducing the tax burden for all to unleash the power of pure capitalism.
Government must be limited to its essential roles outside the market. There is a role for government to play: to present a fair and sound playing field for economic prosperity. The government must create and administer fair rules for the game to be played, but it must not participate in the game.
Regulation is needed to a degree, but this State has a significant problem with "unnecessary regulation". There is no doubt that over regulation is one of the major reasons for economic misery in this State, and until our regulatory agencies are scaled back to their essential roles, economic growth will be limited.
The economic environment will be prosperous again once the tax burden is reduced and over regulation is reigned in. Not only will our current residents prosper, but our State will become attractive to other investors without the need to bribe them to North Carolina with dollars confiscated from tax payers. There is a solution to economic growth, but that solution is just not the government.