Uncategorized

Budget and Tax Center Statement on the Senate’s Tax Agenda for 2013

Yesterday, Senator Berger confirmed speculation and shared more details about the Senate  plan to overhaul the state’s tax code as well as his vision for establishing North Carolina’s reputation as a leader among states.  The two cannot be reconciled.

In proposing to pursue elimination or significant cuts to personal and corporate income taxes, the Senate leadership is adopting the worst and most extreme policy options other states have to offer. This proposal will also compromise North Carolina’s ability to build a foundation for economic growth.  Without more than half of the state’s overall revenue that these taxes provide, North Carolina will not be able to invest in educating our workforce, supporting infrastructure critical to thriving businesses, or protecting the safety and well-being of communities.  And if his tax proposal were to include a shift to rely on the sales tax, as has been suggested in the Civitas/ Laffer study that serves as their template, the middle class would bear a heavy load for the investments that we all enjoy while the wealthy receive a tax break.

Certainly, North Carolina needs to rebuild after the Great Recession and the subsequent policy decisions that cut the key investments that are the foundation of a strong economy.  Yet, the facts and historical evidence make clear that this is no way to effectively create the jobs the state needs or spur economic growth.  Tax cuts are unlikely to encourage hiring by small businesses or change the investment decisions of wealthy households. Tax cuts will only serve to widen the income gap and undercut economic security for families and our state.

There are better policy options available to fix what is wrong with the state’s tax code, rebuild our communities, and strengthen our economy.  These policies would ensure that we can build on past investments and orient our state towards the demands of the 21st century economy.  North Carolina does indeed need to recommit to being an economic competitor among states, but this will require leadership that is forward-thinking and based on common-sense policies not extreme, disproven ones.

One Comment


  1. Carolina Cannabis Coalition

    January 17, 2013 at 5:25 pm

    what about ‘sin’ taxes?

Check Also

Now is the time to rebalance the state’s unemployment insurance system

New research from The Century Foundation released today ...

Top Stories from NCPW

  • News
  • Commentary

Historical commission member weighs in on monuments, free speech Valerie Johnson is the Mott Disting [...]

The Gardner farm in Wade, population 567, in Cumberland County has been in the family for more than [...]

North Carolina’s former public school superintendent June Atkinson says the state’s new K-12 leader [...]

157 – days since the state budget bill became law containing a provision that makes it more difficul [...]

The solid citizens of Johnston County, N.C. – in a fateful quirk of geography – for several years ha [...]

Why North Carolina’s coal ash and mental health crises have a lot in common Two of the biggest stori [...]

The post Tax Cuts & Jobs Act for the 1% appeared first on NC Policy Watch. [...]

Tax “reform” is on the front burner in Washington this holiday season and, as many knowledgeable obs [...]

Featured | Special Projects

NC Budget 2017
The maze of the NC Budget is complex. Follow the stories to follow the money.
Read more


NC Redistricting 2017
New map, new districts, new lawmakers. Here’s what you need to know about gerrymandering in NC.
Read more