As usual, causality is somewhat in doubt here. But this comparison to Kansas is interesting:
That’s because the broad tax cuts were coupled with rollbacks in corporate-welfare giveaways and measures designed to restrain the growth of spending spending. Overall, spending will increase just 3 percent this fiscal year, which is below the 3.8 percent combined growth of inflation and population.
In other words, North Carolina legislators showed the nation how to successfully implement tax cuts that grow the economy without destroying the state budget. This is a sharp contrast to everyone’s favorite tax-cut boogeyman, Kansas. There, after the passage of dramatic tax cuts in 2012, total state spending increased almost every year. Between the budget years of 2010 and 2018, Kansas lawmakers increased expenditures by almost 25 percent, from $5.3 billion to $6.6 billion. And even in the face of declining revenues, the legislature failed to rein in spending. You don’t have to be an economist to understand how this would lead to a budget crisis.