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BTC statement: Berger tax plan will harm working families

STATEMENT FROM THE N.C. BUDGET & TAX CENTER:

Senate tax proposal shifts burden from the rich to the poor

RALEIGH (May 7, 2013) — The Senate leadership has released a proposal that will harm working families and the broader economy.

By cutting income taxes and expanding the sales tax to more goods and services, the Senate leadership has pursued a shift in tax burden from the rich to the poor, not tax reform. The result is a plan that not only requires low-and middle-income families to pay more while the highest income families pay less, but also reduces the state’s ability to invest in a foundation for economic growth by cutting state revenues by $1 billion each year. That is equivalent to the entire community college system OR the combined budgets of the DHHS Divisions of Aging, Child Development, and Child Health and the Judicial Branch and NC Biotechnology Center.

 

5 Comments

  1. Doug

    May 7, 2013 at 3:53 pm

    First, there are not enough details to show that the tax receipts will decrease by one dollar yet. As I am asked…where are your sources…..you must have pulled that out of the air blah…blah…blah….

    Second, you conveniently fail to mention, from the news stories on the radio today, that the “needy” will have their income taxes shifted to 0%. You can’t get much better than that…especially when they estimate that the sales tax rate will not be different from current receipts.

  2. RJ

    May 7, 2013 at 4:06 pm

    derp derp derp derp derp…

  3. gregflynn

    May 7, 2013 at 7:41 pm

    The sales tax will apply to more goods and to services, including food and prescription drugs currently exempt.

  4. Doug

    May 7, 2013 at 8:21 pm

    Food is subject to a 2% sales tax for the local government use…..just for full disclosure.

    RJ, you sound like you play Battlefield 3….I think I have seen you derping around there.

  5. […] What little we know about the about Berger’s rough draft – that it slashes taxes on millionaires, further reduces essential state services and raises taxes on the working poor and some middle class families through higher sales taxes on groceries and many services — is quickly drawing scorn from across the political spectrum. […]