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.