NC Budget and Tax Center

Settling between bad and worse

With the tax negotiations well underway and an apparent offer from the House on the table, the debate over whether to adopt a bad tax plan or a worse tax plan will continue this week.  Both plans not only fail to fix the problems with our tax code but they would make the tax code even more favorable to wealthy taxpayers and profitable corporations at the expense of middle-class and low-income taxpayers. Both would also result in significant revenue losses that would put at risk public services that North Carolinians value and that matter to our economic stability and long-term growth.False Choices in Tax Plans _FINAL

The latest developments in the negotiations only serve to confirm these concerns.  It appears that the House is moving closer to the Senate on some of the provisions which means the revenue loss for the House plan will grow to $769 million.  Rather than look to find responsible ways to balance those changes or reject the income tax reductions, it appears that policymakers are just looking to slap something together in the waning days of the session.  This is certainly not the way to remake the tax code for the next century.

One Comment

  1. Doug

    June 25, 2013 at 1:18 pm

    Really the only thing wrong with the new tax code overall is the version that taxes food and medicine. Reconcile to the version that excludes those items and NC will be coming into a more flexible taxation scheme. While I don’t necesarily favor a sales tax, at least this will lower taxes overall for most people, and according to Policy Watch numbers only increase the bottom 20% taxes by at the most $37 per year.

    And, lest you forget, progressives were advocates of exactly this type of scheme. Here is just one progressive “think” tank’s view on broadening the sales tax base to modernize taxation. It is truly baffling to hear the uproar from progressives when the early ’00”s were full of talk on raising sales taxes. You guys must just be mad that the people you guys deem “rich” are not being soaked quite as much.
    http://www.bettersouth.org/wp-content/uploads/2006/06/Idea-2.pdf

    And just for your information, the progressive regimes in power up until 2010 or so did not exactly have the greatest record either. The NC section on pg 82 of this presentation show how ….”regressive” you guys had let it become. Maybe you guys need to clean up your own house as your actions are contrary to your words.
    http://www.itepnet.org/whopays3.pdf