Uncategorized

BTC: McCrory needs to get specific on taxes

STATEMENT FROM THE BUDGET & TAX CENTER:
McCrory needs to get specific on tax reform

RALEIGH (February 18, 2013) – Governor McCrory didn’t provide specifics for how he would realize his vision for North Carolina this evening.  And while his vision for North Carolina — a high quality of life for all, revitalized communities and infrastructure,  globally competitive businesses — is admirable, whether we get there will depend on how policymakers pursue that vision.

The devil certainly will be in the details.

In no policy area is that more clear than the debate over tax reform. Governor McCrory provided only high-level comments about his tax plan, signaling that he would lower tax rates, close loopholes, and maintain the current level of revenue the state collects.  The Governor explicitly voiced his commitment to ensuring that the state can support quality education, sound infrastructure, and community safety and well being — the true foundation for economic growth. Yet the question remains: will it be possible?

Basic math tells us that he will either need to close a significant number of loopholes or shift to other tax sources if he hopes to lower rates and achieve revenue neutrality. Set aside for a moment that revenue neutrality would keep in place an already diminished baseline, more than 11 percent below pre-recession levels. The plans already on the table tell us that legislators are planning to rely on the sales tax to support their income tax reductions or eliminations.  As such, these plans would shift the tax load to hardworking North Carolinians while providing tax cuts to the wealthy. Over time, this approach would also erode the state’s ability to fulfill the Governor’s commitment to support schools and infrastructure.

North Carolina needs to rebuild after the Great Recession and the cuts that have been made to the key investments that are the foundation of a strong economy.  Yet, the facts and historical evidence make clear that tax cuts or elimination of tax sources 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 and will only serve to widen the income gap and undercut economic security for families and our state.

We look forward to hearing more specifics from Governor McCrory. We look forward to an approach that will deliver on our shared vision for an even better North Carolina.

FOR MORE INFORMATION, CONTACT: Alexandra Forter Sirota, Budget & Tax Center Director, alexandra@ncjustice.org; Jeff Shaw, jeff@ncjustice.org, 503.551.3615 (cell).

 

 

One Comment


  1. Alex

    February 19, 2013 at 9:53 am

    I believe if you check , the states with the lowest state income taxes also have the lowest overall tax burden per citizen.

Check Also

Mark Johnson’s hometown newspaper: State courts must reject his bid for unchecked power in education

This morning’s lead editorial in the Winston-Salem Journal ...

Top Stories from NCPW

  • News
  • Commentary

This story has been updated with comments from Jim Womack, who did not respond earlier to questions. [...]

For the 18 months, Gary Brown has been traveling through northeastern North Carolina like an itinera [...]

It will be at least another month before state Superintendent Mark Johnson can take over at the helm [...]

Eric Hall, in the midst of a rainy drive to rural Robeson County to pitch North Carolina’s ambitious [...]

The latest effort in Washington to repeal and not actually replace the Affordable Care Act has a dif [...]

Conservative group “reviewing” bigoted attacks; funding from major NC corporations implicated Nearly [...]

5---number of days since Senators Bill Cassidy and Lindsey Graham unveiled a new proposal to repeal [...]

The post The stench of hate speech appeared first on NC Policy Watch. [...]

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