Senate leaders announced they will continue on the path to ruin for North Carolina by pushing forward another series of income tax rate cuts this year that will primarily benefit the wealthy and profitable corporations.
Instead, by lowering the income tax rates on corporate profits and income, the proposal continues to lock in the already significant breaks to the wealthy and profitable corporations. To date, North Carolina’s millionaires have received an average tax break of $15,000 since 2013 while the state’s poorest households are carrying a heavier tax load.
North Carolina’s profitable corporations contribute the lowest amount in the country to ensuring that the infrastructure, workforce development and education that they benefit from is effective and efficient. Under this proposal, the state will continue to ask little of large multi-state corporations and underfund the foundations of a strong economy for our state.
The proposed changes to the standard deduction and child tax credit are ineffective to offset the already greater share of income paid in state and local taxes by the lowest income taxpayers in North Carolina. And the resulting pressure on local governments to raise property taxes and on future state lawmakers to raise sales tax to make up the losses from these tax breaks for the wealthy will make it difficult to invest in opportunity for all.
It is important for all North Carolinians to see the full plan of the North Carolina Senate. We must ask what will be eliminated from our communities to pay for these tax breaks. We must ask who they will ask to pay more.
The proposal passed earlier this week to lock in a low and arbitrary income tax rate that primarily benefits the wealthy is part of the effort to eliminate the income tax entirely and push the tax load onto middle- and low-income taxpayers. Not only is this not a pathway to prosperity, this is another step backward for North Carolina.