Uncategorized

Daily Reflector on Berger’s tax plan: Not a serious attempt at reform

ReflectorThe Greenville Daily Reflector is the latest paper to offer the Senate leadership’s tax reform proposal less than glowing remarks. The editorial board writes in Tuesday’s paper:

‘Last week, N.C. Senate President Phil Berger formally announced his proposal for comprehensive tax reform, putting in writing many of the rumors swirling about such a plan. If approved, it would eliminate the personal income tax, corporate tax and business franchise fee in what the Eden Republican claimed would be the largest tax cut in state history.

To offset such a massive loss in revenue collection, the state would dramatically expand the scope of the sales tax to cover many more goods and services. It would include taxing prescription drugs and raising the tax on food from 2 percent to 7 percent here in Pitt County.

Analysis of the plan confirms that the end result would be a tax hike for a majority of state residents and a tax cut for only the wealthiest. In no small measure, the plan would shift the burden of funding state government from those atop the economic ladder to those at the bottom. What’s more, it is not revenue neutral and would therefore require significant spending reductions in a state that already pinching pennies for needs like schools and roads.

The state’s outdated tax structure does need reform and changes are likely to expand the sales tax to cover a greater share of services. However, the guiding principle should be constructing a system of fairness that serve North Carolina’s long term interest. That will not be achieved by raising the tax on food to cut the income rates for the richest citizens, especially if it comes at a cost of harming valuable state services. .

That is what leaders in the N.C. Senate propose and why that plan cannot be considered a serious starting point for debate.’

You can read the full editorial here.

One Comment


  1. Doug

    May 14, 2013 at 3:20 pm

    Well here you guys have an option so that progressives can pay as much as they want into the state coffers. I expect all you advocates of big government taking as much of people’s money as possible to sign up for your fair share! You can now give up to, and maybe beyond 100%

    http://www.wral.com/would-you-volunteer-to-pay-more-taxes-/12443225/

    Before you ask….I am not signing up. I already contribute my fair share plus more than 100%.

Check Also

The Week’s Top Five on NC Policy Watch

1. Another look at Cooper’s doggedly impressive start ...

Top Stories from NCPW

  • News
  • Commentary

With just a few hours left until the crossover deadline, the state of North Carolina’s environment i [...]

On Monday morning, there was only one way left to save the Court of Appeals and a few hours with whi [...]

The political compromise that repealed HB2 was enough for the NCAA and ACC, both of which have retur [...]

Conference comes a day after new report lauds benefits of same-day registration The new line-up for [...]

How many times do we have to say it? Well, it’s worth repeating – especially in the aftermath of rec [...]

As the national pundits weigh in on President Trump’s first 100 days in office and the General Assem [...]

How the General Assembly is spending “crossover week” and what it ought to be doing The last week of [...]

To casual observers, the recent controversy surrounding public school class-size mandates in grades [...]

Featured | Special Projects

Trump + North Carolina
In dozens of vitally important areas, policy decisions of the Trump administration are dramatically affecting and altering the lives of North Carolinians. This growing collection of stories summarizes and critiques many of the most important decisions and their impacts.
Read more


HB2 - The continuing controversy
Policy Watch’s comprehensive coverage of North Carolina’s sweeping anti-LGBT law.
Read more