Uncategorized

State Senate doesn’t budge: Proposed tax changes reward businesses, punish average taxpayers

State lawmakers constantly claim that they are looking out for average North Carolinians. However, actions speak louder than words and proposed tax changes that the state Senate aims to enact is a good example. The tax changes would further shift the tax responsibility to low- and middle-income taxpayers and away from the wealthy and profitable corporations.

As part of the proposed tax changes, the Senate would target cash-strapped homeowners by requiring them to pay state income tax on mortgage debt forgiven by lenders, even though no actual cash is provided to the homeowners. Another proposed tax provision would no longer allow students and families to deduct expenses for tuition and related expenses such as course textbooks, supplies, and equipment.

These two proposed tax changes were excluded from the House version of the bill; however, the Senate has not budged and has kept these tax changes in its package of proposed tax law changes. Consequently, while many North Carolinians continue to await their Carolina Comeback amid an uneven recovery and a steady increase in the cost of a college education, state policymakers are essentially saying “tough luck”.

In contrast, the same Senate bill includes a tax break for businesses that fall on bad luck. The proposed tax change would allow businesses that experience economic losses (e.g. they don’t make a profit), potentially as far back as 30 years, to carry forward those losses to reduce profits generated in the years ahead. Rather than ensuring that profitable corporations pay their fair share, this tax change does the opposite.

The disturbing reality is that North Carolina’s tax system favors the wealthy and profitable corporations at the expense of average North Carolinians. Whereas distressed North Carolina homeowners who were preyed upon by unethical lenders are punished as a result of receiving much-needed consumer relief, profitable corporations are provided tax breaks in the event they fall on hard times.

Such tax changes contribute to the making of North Carolina’s upside-down tax system, which work to shift the tax responsibility to low- and middle-income taxpayers and away from the wealthy and profitable corporations.

2 Comments


  1. Cheryl

    March 19, 2015 at 5:59 pm

    Is anyone really surprised by this? Berger and co. believe they own our state.

  2. LayintheSmakDown

    March 21, 2015 at 10:06 am

    I would hardly say the “average” taxpayer is participating in a mortgage forgiveness program. More hysteria by a progresso.

Check Also

New budget a roadmap full of potholes and an unclear destination

A new BTC report highlights how the new ...

State and Federal COVID-19 policy updates

Top Stories from NCPW

  • News
  • Commentary

A confidential letter delivered to the State Board of Education alleges that the school management f [...]

Historic congressional hearing examines the pandemic's disparate racial and ethnic impacts WASH [...]

At the end of an hour-long question-and-answer session with UNC-Chapel Hill Chancellor Kevin Guskiew [...]

North Carolina House lawmakers will consider an elections bill today that would provide temporary fu [...]

It needs to be acknowledged at the very outset of this column that there is, of course, no way that [...]

It has been eight days since Minneapolis resident George Floyd, a Black man, was killed by Derek Cha [...]

The post Tarred Heel. appeared first on NC Policy Watch. [...]

Yesterday – the 75th Memorial Day since the end of World War II (and the first in more than century [...]