NC Budget and Tax Center

Statement from Alexandra Sirota, Budget and Tax Center Director on the Tax Deal

This is a bad deal  for North Carolinians.  What the Governor and Legislature agreed on won’t support job creation  and it will drain resources needed to bolster our economy.

It puts at risk the ability to educate our children, care for our elders, keep our communities safe and support businesses, while failing to fix the problems with the state’s tax code. And, it gets rid of policies that work such as the Earned Income Tax Credit.

This is not a historic day for North Carolina; tax reform hasn’t been achieved.  Instead, we’ve been handed a plan that will tarnish our state’s reputation as a leader in the South, a place where people want to live and businesses want to grow.

It is very likely that as a result of this failure to pursue real, comprehensive tax reform, state sales taxes and local property taxes will go up in the future.   That’s what happened in every other Southern state that has personal and corporate income taxes that can’t keep up with growing public needs.

Our state cannot be competitive nationally or internationally with this reckless approach. It undermines the education of our workforce and support for research and innovation.  The prospects of an ongoing race to the bottom for North Carolina now are all too real.

7 Comments

  1. Pat

    July 15, 2013 at 6:41 pm

    The overt pandering to corporate interests, while totally ignoring the actual residents of NC and a good bit of common sense, astounds me. Do these morons actually believe that the only news source that Tarheels consult is Fux News? I sincerely hope that the Tea Party halfwits who elected these folks are happy with their decision. As for the rest of us, the next election can’t come soon enough. Gerrymandering or not, these corporate whores have got to go.

  2. melanie

    July 15, 2013 at 8:30 pm

    “REVENUE:

    The plan is projected to result in $86.6 million less in state revenues during the 2013-14 fiscal year and $437.8 million less in 2014-15 compared to revenue levels if no tax changes were made. The amount extends to more than $600 million annually through mid-2018. Local governments combined would receive $14.6 million in additional revenue in 2013-14 and $36.2 million in 2014-15.
    ” Tel me how it makes sense to be fiscally responsible and whimper about how much harm deficits do so you respond by decreasing your revenue? I know the whole trickle down nonsense but in the last 40 years that trickle down has been their mantra all it’s done is blown up deficits, wiped out working wages & benefits for most, and cut social services to the bone. Just because you say it’ll work, how many decades of failure have to pass before people see it doesn’t and quit voting for it.

    Also, part of the plan is going to have us start to pay tax on service contracts – think of all the small shop labor guys out there who hopefully pay their taxes on the monies they earn but now they have to figure out how to include taxes, collect them, pay them, do the paperwork.. wowie.

  3. melanie

    July 15, 2013 at 8:30 pm

    “REVENUE:

    The plan is projected to result in $86.6 million less in state revenues during the 2013-14 fiscal year and $437.8 million less in 2014-15 compared to revenue levels if no tax changes were made. The amount extends to more than $600 million annually through mid-2018. Local governments combined would receive $14.6 million in additional revenue in 2013-14 and $36.2 million in 2014-15.
    ” Tel me how it makes sense to be fiscally responsible and whimper about how much harm deficits do so you respond by decreasing your revenue? I know the whole trickle down nonsense but in the last 40 years that trickle down has been their mantra all it’s done is blown up deficits, wiped out working wages & benefits for most, and cut social services to the bone. Just because you say it’ll work, how many decades of failure have to pass before people see it doesn’t and quit voting for it.

    Also, part of the plan is going to have us start to pay tax on service contracts – think of all the small shop labor guys out there who hopefully pay their taxes on the monies they earn but now they have to figure out how to include taxes, collect them, pay them, do the paperwork.. wowie.

  4. Stan

    July 15, 2013 at 9:41 pm

    Of course i’s a bad deal…for the poor and middle classes. It was designed with that in mind. Only the wealthy and large businesses will be happy. Again, that’s by design. Revenues will go down so the GOP can say “we don’t have the monies” and keep strangling public education and infrastructure and social welfare programs.

  5. Alex

    July 16, 2013 at 8:17 am

    What have the Obama “trickle-up” policies done for us Melanie ? They’ve made the rich richer, and the poor poorer,wiping out much of the middle class along the way, and creating more deficits in 4 years than most of the presidents before him. What’s great about that ?

  6. ML

    July 16, 2013 at 1:12 pm

    What have the Obama “trickle-up” policies done? First I’d be clear not to call them trickle-up or Obama’s policy since Congress controls the purse and the Fed controls the monetary policy but if we’re throwing the blame on Obama then I’d have to mention the record surplus for last month. The policies that made the rich richer and poor poorer can be directly attributed to the Reagan and Bush regressive tax cuts.

  7. Chris

    July 16, 2013 at 10:55 pm

    @Alex you mean like stabilizing the economy debacle the trickle down mess caused.