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.
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.