Alexandra Sirota: Ineffective cuts

The June 26 business article “Groups criticize Senate budget” demonstrated how the deep cuts in state taxes threaten North Carolina’s ability to attract and nurture companies offering the jobs of the future.

At the same time that industry groups wish for tax cuts, they also lament the loss of public support for innovation. This shows what a blunt, ineffective instrument tax cuts are as a strategy to create jobs and build a strong economy.

In other words, they can’t have it both ways.

The tax cuts in the Senate budget will cost $1 billion when fully implemented. The resulting reduced support for the Biotech Center, R&D, small business assistance and public colleges the Senate budget proposes is just the beginning of the price to be paid. At stake are the foundations of a strong economy: public schools, transportation and the efficiency of the courts, to name just a few.

Innovative entrepreneurs and companies with the potential to deliver high growth and high wages are important to North Carolina. But instead of making sure we have the resources to invest to support growth, the state is abandoning the commitment that made North Carolina a leader.

This story was originally published July 2, 2015 at 5:17 PM with the headline "Alexandra Sirota: Ineffective cuts."