Government needs tax revenue, but officials need to remember that excessive tax rates can stunt the economic growth that produces that revenue.
Taxes are the primary source of income for the state of North Carolina," writes Sarah Curry, John Locke Foundation director of fiscal studies. Personal and corporate income taxes make up half the state's total revenue.
"With over 90 percent of the state's income coming from tax revenue, it is a major component not only of government, but of our state's economy," she writes. But she cautions that, while necessary, taxes can become overly burdensome, and in many cases stifle the state's economy by making work and investment more expensive.