Cole Says No to Amendment One
If the North Carolina General Assembly recommended a constitutional
amendment to expand state debt or to promote corporate welfare, such a
proposal would probably die before it even reached the ballot box. That's
why they chose to seek the same ends, while simply calling it Amendment
One.
"This is a completely innocuous, non-threatening, bland and highly
deceptive title," charges Christopher Cole, Libertarian candidate for
Lieutenant Governor. "I urge all North Carolinians to vote no on Amendment
One.
Amendment One would allow local municipalities to use "tax increment
financing," also called TIFs. "These are simply government issued bonds
that don't require voter approval," said Cole. They are used in several
states to finance economic development, with the bonds paid from the
resulting property taxes, rather than as a general obligation of the
issuing government unit.
"This is simply an expansion of corporate welfare," Cole charged. Not
only would new businesses demand TIFs to finance their investments, but
they would also hold the public budget hostage to their continuing
success.
"Why should taxpayers underwrite corporate expansion and profits?"
asked Cole. "This proposal will put a corporate gun to local
officials. 'Give us subsidies, or we'll stick you with useless bonds'. Not
only will that be a disaster for local government, but it will make
inefficient businesses into parasites on productive companies."
Cole also objects to Amendment One because there are inevitable tax
increases hidden behind supposed limited debt.
"As some of the subsidized businesses fail, the property tax income
will dry up, leaving the TIFs as a general obligation on the local
budget," he said. In addition, the tax burden on neighbors of such
businesses will necessarily increase, as the burden increases on roads,
police, fire, and other public services, while the increased tax income
disappears down the TIF money pit.
"Let businesses bear their own risks," Cole urged. "And let them
contribute to the tax base just like their neighbors."
Cole urges NC voters to say no to corporate welfare, decreased
accountability of government, and increasing taxes.
"Vote No on Amendment One," he said.
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