NC Budget and Tax Center

Tax plan foregoes investments that would benefit all North Carolinians

This month, taxpayers receiving their paychecks are seeing changes in their take-home pay.  Some will see more, some less since the tax plan passed last year delivers income tax cuts depending on individual taxpayer circumstances.

The benefits from the new tax law will accrue primarily to the wealthiest taxpayers and profitable corporations. In total, the tax plan passed last year reduces revenue by nearly $525 million over the next two years. The foregone investments for our communities that will result from these tax cuts will impact us all.

Consider what could have been done to improve the classroom experience of our students in K-12 public schools if policymakers hadn’t chosen to cut taxes for the wealthy and profitable corporations. These dollars could have been used to provide a package of investments in public education such as:

  • Keeping 1 in 5 teacher assistant jobs in FY15
  • Doubling current funding for textbooks in FY15
  • Keeping the Teaching Fellows program in FY15
  • Protecting salary supplement for teachers with master’s degrees in FY15
  • Providing a 2 percent salary increase for teachers in FY15

As more students enter our public schools, educators are increasingly being asked to do more with less. Our public schools have seen state funding cut in critical areas that evidence shows promote student success – classroom teachers, teacher assistants, and instructional support, for example.

As a result of state funding cuts to K-12 education, classroom size has increased, students are learning from outdated textbooks, and instructional supplies are in short supply. The average teacher salary for North Carolina educators has fallen to 46st among states in recent years and many teachers spend money out of their own pockets to ensure they have needed classroom supplies.

North Carolinians have long recognized the importance of education as a pathway to increased opportunity for individuals and a more competitive state economy. However, leadership in the General Assembly has taken a change of course that began before passage of the new tax laws last year. The tax plan only accelerates our pace down that misdirected path.

5 Comments

  1. Tim Peck

    January 17, 2014 at 3:50 pm

    “the tax plan passed last year reduces revenue by nearly $525 million”

    What about the ‘tax dividend’?

  2. LayintheSmakDown

    January 17, 2014 at 5:37 pm

    The tax plans forego spending you would like to see, but lets the people themselves invest as they see fit.

  3. ora uhuru

    January 18, 2014 at 8:29 pm

    North Carolina has always been behind the times. The state will suffer for these stupid acts. No well meaning corporation will move to this if our education continues to spiral down to the bottom of the barrel. Politicians you can be this stupid!!

  4. Alan

    January 20, 2014 at 3:59 pm

    Ora,

    Bottom of the barrel is what they’re aiming for. A neo-fascist Nirvana is what they would liek to see. I concur 100% that no self respecting corporation would move here, as the long term prospects of a GOP controlled state mean dark days ahead of us.

  5. LayintheSmakDown

    January 21, 2014 at 6:18 pm

    Alan/ML/ and Ora
    Then why is NC increasingly on the top of lists of people migrating to? It is because we are becoming a state that looks to progress with favorable tax structures that have effective education regardless of this spending measure. As we have seen through past progressive (in the socialist communist meaning of the word, not progress in the traditional sense) schemes to throw more money at all forms of government programs, it just does not work. We have now switched to a new regime that actually looks for results not just more requests for money.