NC Budget and Tax Center

Statement on Senate’s Tentative Approval of Latest Tax Plan

The tax cuts the Senate passed today would put our schools, public safety and other vital investments in North Carolina’s future at risk, while giving the state’s wealthiest residents and profitable corporations a substantial tax break.   Despite misleading claims to the contrary, this plan  would sharply curtail future revenues —by almost $1 billion annually, according to estimates by the General Assembly’s own Fiscal Research Division. Such a loss would make it more difficult for the state to recover from the already damaging cuts that have been made to education and other services over the course of the Great Recession and recovery.  To try to make the math add up, the Senate proposal would also raise taxes on middle-class and low-income  taxpayers.  This is not a recipe for economic competitiveness or growth.  North Carolinians and our state’s reputation for innovation will suffer if it becomes reality.

For our analysis of the plan, see here.

3 Comments

  1. Doug

    July 2, 2013 at 5:37 pm

    Definitely large flaws with your analysis. The beginning assumption is that the current tax code is a good baseline…..hardly. That is just the first flaw….

  2. Jack

    July 3, 2013 at 10:28 am

    The flaw in the “baseline” that the GOP see is that the wealthy and corporations pay to much and others don’t yet pay enough taxes.

    The apologetics offered up by those mesmerized by the GOP’s draconian abuse of the people of NC comes from those who believe they are insulated from the actions of their abusers.

  3. Doug Gibson

    July 7, 2013 at 10:21 am

    For those just tuning in, NC Policy Watch and the NC Budget and Tax Center spilled gallons of ink before 2011 on how the North Carolina tax code needed to be reformed. And then the GOP took control, and since then legislators been working hard to make our revenue system even worse. So when someone at the BTC uses our current tax code as a baseline, it’s not because they endorse it.