Surprise! Senate tax cuts favor the rich

The N.C. Budget and Tax Center will be releasing a full analysis of the Senate’s tax cut package next week, but, not surprisingly, the unfairness of the plan is already evident in preliminary findings.

According to their initial estimates, the average annual income tax cut for people in bottom quintile (i.e. the lowest 20% of incomes) will be $5. That’s right, five big ones baby!  Let’s grab a six pack of Schlitz and party!

Middle income folks will see a cut of a whopping $46 – enough to buy most of  a tank of gas.

And the wealthiest 1% of North Carolinians? Well, not that they’ll probably notice it either, but the  Senate income tax cuts alone will provide them with a cool $1,830 per year — enough to buy some of the lower priced jewelry at Newt and Callista Gingrich’s favorite store.

By the way,  the final “incidence” figures will almost certainly be even worse once  the BTC gets to adding in the cuts to business taxes in the Senate package.

7 Comments

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  2. Jeff

    May 27, 2011 at 12:18 pm

    Well, if you have a progressive income tax to begin with, you get progressive tax cuts.

  3. jlp75

    May 27, 2011 at 12:49 pm

    Well I think a better take away here would be that on an individual basis, these tax cuts are meaningless. With the average middle class person getting an extra $46, there is hardly any stimulation to the economy that will result from this. However, putting all this money together in the “pot” so to speak means a lot of money in the budget that could benefit the state and limit layoffs which will have a very negative effect to our state economy. It is all about how would this money do the most good for the citizens of the state and our economy as a whole. Even on the high end $1800 is chump change to a high income individual. If I were a business owner I would not care whether my customers worked for the private sector or the public sector as long as they brought their money to my business to spend. These very minor tax cuts will most likely not create jobs. Taking this money from the general fund will absolutely destroy many jobs.

  4. [...] View original post here: Surprise! Senate tax cuts favor the rich « The Progressive Pulse [...]

  5. [...] why the most recent round of proposed tax cuts for the wealthy being put forth in the NC Senate are unconscionable–as noted by NC Policy Watch, if [...]

  6. Pollytiques

    May 30, 2011 at 1:12 pm

    What ever happened to the plan to collect back taxes from the people that have been owing BIG amounts for years? I was trying to do a little research about this subject the other day and can’t find where any of it’s been collected. 2.1 million for one republican.

    My county tax almost doubled and if I don’t pay it by April every year, the county will start proceedings to sell my property.

    I sure would like to know about this with names of just who is responsible for it dragging on this long..the more I think of the injustice of this the angrier I get.

  7. nancy

    June 10, 2011 at 8:45 am

    NC has a huge problem by not offering tax cuts for retirees. Both SC and GA have done this.

    $1830 a year is small change to a wealthy person. At least the NC Senate’s tax cut package is a step in the right direction.