The Senate budget fails to fully invest recovering revenues into the foundations of economic growth—our schools, courts, parks and public health systems. Instead, the Senate will immediately reduce available revenues by $217 million ($770 million total over the next two years) through an ill-advised series of tax cuts that primarily benefit the richest North Carolinians and profitable corporations. These tax cuts are not reform nor will they deliver the jobs or economic growth that have been promised.
And over time, if the Senate’s flawed tax proposals are adopted, there will be far greater cuts to public investment. That is because the tax plan fully phased in will reduce revenues by an estimated $1 billion or more, or the equivalent of the annual community college system budget, by 2016. Since that won’t be accounted for in the current biennial budget, it is incumbent on us all to ask where the Senate will find the cuts in the future before the tax plan is adopted and the budget too.