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.

Check Also

Twelve more big policy changes buried in the N.C. Senate budget

There are a lot of issues with the ...

Top Stories from NCPW

  • News
  • Commentary

A bill to limit local regulation of small cell towers is moving to a full House vote, despite concer [...]

The U.S. Supreme Court ruled Monday that the North Carolina GOP drew unconstitutionally racially ger [...]

As the N.C. House puts together its budget this week, the same thought is on the minds of representa [...]

The most shameful thing about the disastrous budget passed by the Senate two weeks ago is not the vi [...]

Court setbacks, public opinion, progressive activism and Trump bode ill for NC conservatives Profess [...]

So, the question as always comes down to one of vision. The elected chieftains who decide how much m [...]

2.8 billion---amount in dollars of needs in communities across the state for rebuilding efforts from [...]

Featured | Special Projects

Trump + North Carolina
In dozens of vitally important areas, policy decisions of the Trump administration are dramatically affecting and altering the lives of North Carolinians. This growing collection of stories summarizes and critiques many of the most important decisions and their impacts.
Read more


HB2 - The continuing controversy
Policy Watch’s comprehensive coverage of North Carolina’s sweeping anti-LGBT law.
Read more