Report documents Great Tax Shift; new NC code produces worst-of-all-worlds results

ff-8292013It’s depressing as hell, but everyone who cares about North Carolina public policy should make this new report by the N.C. Budget and Tax Center’s Cedric Johnson: “Who Pays in 2014″ a part of their Tax Day reading list.

As Johnson reports:

“Changes are coming to who pays taxes in North Carolina, and the news is not good for middle- and low-income taxpayers. This tax season marks the final year taxpayers will file their income taxes under the state’s old tax code and by next year it will be apparent to many taxpayers that the tax plan has not just reduced available dollars for investing in core public services, but also has increased the tax load for many.

The tax plan passed by lawmakers last year shifts the responsibility of paying for public investments to middle- and low- income taxpayers and provides tax cuts to profitable corporations and wealthy taxpayers. Despite evidence showing no clear relationship between tax cuts and positive state-level economic performance, North Carolina lawmakers paid for these massive tax cuts for the wealthy by shifting the tax load onto middle- and low-income taxpayers, making the state’s already upside down tax system worse.

North Carolina’s new tax code results in taxpayers at the lowest end of the income spectrum, with income of $17,000 or less, paying around 9.5 percent of their annual income in total state and local taxes while taxpayers at the upper end, with income of $345,000 or more, pay about 5.5 percent of their annual income in total state and local taxes.”

Read the entire report by clicking here.

10 Comments

  1. LayintheSmakDown

    April 14, 2014 at 6:19 pm

    I am paying more, and I will put it to the fact that the fair share is finally making it down to the right level. It is a fact that you have to have more paying in to make the system work (for some reason libs like to tout that fact with Obamacare, but not with taxes), so to keep the rich government perks and continually expand government as you wish, you gotta get more paying in.

  2. Alan

    April 14, 2014 at 6:47 pm

    If President Cheney and his empty suit hadn’t crashed the economy, we’d have plenty of people paying in.

  3. ML

    April 15, 2014 at 11:26 am

    LSD, the way you play mental gymnastics is profound and fun to see on display. Sounds like you’re in an abusive relationship and they have all the upper-hand now. Raising taxes is good or bad? Can’t keep it straight huh? Take a minute and call master pope then get back to us…

  4. LayintheSmakDown

    April 15, 2014 at 6:05 pm

    And if Barry had not made strides to crash the economy even more then we might be out of this mess. By the way, the real cause of the housing bubble can actually be traced back to Clinton and the CRA, so your straw man of Bush/Cheney holds no water.

  5. LayintheSmakDown

    April 15, 2014 at 6:07 pm

    ML/(Alan?) I am just sayin I am on the losing end, but ok with paying if I have to. Unfortunately the increase is going down the useless socialist succubus toilet of Medicaid rather than to worthy causes like transportation or teacher pay.

  6. Jack

    April 16, 2014 at 9:40 am

    So it is okay for the average American to pay more taxes as long as the rich and powerful pay less? When the GOP campaigned that they wanted “big government” out of our pockets they weren’t talking to the average American they were talking to the rich and powerful. So now that the GOP has shifted the full tax burden to the average American the it is saying it is okay for big government to be in our pockets. Again, the GOP used their free speech money to convince people to go against their best interest.

  7. LayintheSmakDown

    April 16, 2014 at 5:57 pm

    Jack, it is a fact of life that taxes are going to have to come from where the most people are, and where the perks are being spend. You could take 100% of the income the rich make and barely dent the spending that has been set up by the cradle to grave welfare state.

    And yes, the GOP needs to get rid of the spending. Just look at Medicaid which takes up billions of dollars and runs deficits of hundreds of millions….or the bloated top heavy schools that would spend every dollar of GDP in NC and still ask for more….or how about when the NCGA has to take hundreds of millions from the transportation fund each year to fund perks. But oh no…when it comes to cutting any of the perks the progresso’s here are gnashing teeth and throwing a hissy fit with tears galore.

  8. John Pollock

    April 17, 2014 at 11:21 am

    This is not about president cheyney. This is about Art Pope and his hand picked crony for NC governor Pat McCrory.

  9. ML

    April 17, 2014 at 1:07 pm

    Sorry LSD it is too painful to watch you squirm around this thing you’ve fabricated in your mind. So when Obama extended your tax cuts minus the %1 that was bad but whe the nc GOP cuts taxes on the 1% but raises them for everyone else including yourself that is good? But you forget had it not been for those GOP tax increases on yourself and decreases for the rich we’d have money to spend on your more worthy causes. You are full of it, maybe take a mental sit down so you can reformat your beliefs so that you aren’t a hypocritical puppet. I have my own ideas that are grounded in reality, please find some of your own so I might enjoy not having to school you daily… Drops the mic and walks away.

  10. ML

    April 17, 2014 at 1:11 pm

    BTW LSD THERE IS NO UNFORTUNATE TAX INCREASE GOING DOWN ANY TOILET.

    Taxes were decreased, at least that what you and the GOP said? Right? Get you Shiz together LSD you’re useless.