- The Progressive Pulse - http://pulse.ncpolicywatch.org -

House Finance Committee tweaks House tax plan, raises budget hole to $864.4 million

Members of the House Finance Committee yesterday made the House tax plan even more expensive, as just noted [1] by my colleague.

The committee removed the $25,000 cap on the amount taxpayers can deduct for charitable contributions, mortgage interest, and local property taxes. The tax plan still means significant tax cuts for the top 5 percent, and it would further slash investments in things that help our economy, like our neighborhood schools and world-class universities.

The committee changes would reduce revenues by $525 million per year, bringing the total cost of the House tax plan to $864.4 million per year once fully implemented.

No area of the state budget would be unharmed by the revised House Tax plan. After several years of budget cuts that have taken an enormous toll on the state’s investments in education, safety, and healthcare, North Carolina must start rebuilding the foundation of our state economy, but the House tax would do just the opposite.

To put the cost of the House’s tax plan in perspective, the cost of the House tax plan could pay for every single one of the following investments in children, families, and communities:

North Carolina cannot afford tax breaks for profitable corporations and wealthy individuals—especially ones based on disproven economic theories [2]—when the cost is teacher layoffs, ever-growing waiting lists for pre-kindergarten programs, and the dismantling of public policies that serve as a lifeline for vulnerable families. There are better options.