The tax deal authored by Gov. McCrory and legislative leaders may be on the way to becoming law, but it is being greeted with great skepticism by folks in the know.
“This is not reform. This is not revising the tax code to plug holes and ensure fairness and create a system whereby there is reliable revenue from one year to the next. This is simply cutting taxes for the people most able to pay them and pandering to the business lobby. The governor also continues to hype the notion that, by cutting taxes,North Carolina will signal it is “open for business” and be more competitive with neighboring states.”
“Gov. Pat McCrory and legislative leaders should have the guts to call their tax plan what it is: A $600 million annual tax cut, not tax reform. You may like or dislike a tax cut, but don’t confuse it with the fundamental reform that North Carolina has needed for more than a decade.”
“Let’s first be clear about one thing the tax plan announced Monday, and which as expected sailed through its first steps of legislative approval Tuesday, is not. It is not tax reform, at least not the sweeping overhaul of our creaking tax code the governor and the legislative leadership set out to deliver and which has eluded proponents for years.”
As the Star-News noted:
“As for the state, the belt-tightening that has squeezed the schools and other state-funded services and sent state workers to the unemployment rolls will continue. The compromise would reduce state revenue $500 million next year compared with leaving tax rates alone, and $2.4 billion over five years.
Critics including the liberal-leaning N.C. Budget and Tax Center are right to worry about the potential consequences of this plan, especially for lower-income and middle-income residents. Among the concerns cited by the center’s director, Alexandra Sirota, are that it might lead to future increases in sales and local property taxes over time. “