Commentary

Graph documents amazing scale of U.S. Senate’s proposed giveaway to the rich

New from the experts at the N.C. Budget and Tax Center:

Upcoming Senate budget resolution vote paves way for windfall for wealthiest, destabilization of NC budget

This week, the U.S. Senate will vote on a budget resolution that will allow them to fast track tax changes that are likely to primarily benefit the wealthiest taxpayers and profitable corporations.

The tax plan framework released by President Trump and leaders in Congress will not provide an equal tax cut to all taxpayers in North Carolina. Recent analysis by the Institute on Taxation and Economic Policy found that 57.6 percent of the tax cut would go to the richest 1 percent of taxpayers in North Carolina. These taxpayers would receive an average annual tax cut of $50,440 a year. This is roughly equivalent to the annual income of the median household in North Carolina as of 2016.

In contrast, both the middle income group and the poorest in our state would receive a smaller share of the tax cut compared to the wealthiest. The poorest in our state, those with an average annual income of about $13,000, would only receive 1.7 percent of the tax cut, which would be equivalent to $80. Meanwhile, the middle income group, with an average income of $45,000, would receive 12.2 percent of the tax cut, which would be equivalent to $550.

Due to the loss of revenue from these lopsided tax cuts, the Senate is likely to follow the House’s budget resolution, which proposes $5 trillion over 10 years in cuts to health care, food assistance and other public services. State policymakers will have to decide whether or how to deliver these services with limited options given the additional tax cuts already scheduled to take effect at the state level on Jan. 1, 2019.

Check Also

The best editorial of the weekend

In case you missed it, the Greensboro News ...

Top Stories from NCPW

  • News
  • Commentary

Numerous questions remain, however, about the treatment of dozens of other trans inmates Kanautica Z [...]

The Trump Administration’s new public charge rule will do more to keep families separated than it wi [...]

GIBSONVILLE -- The tobacco fields near East Guilford High School are reminders of times bygone when [...]

They clutter the gutters and girdle the turtles. They snag in the trees and float in the seas.  Plas [...]

Thirty-two seconds. That’s how long it took for the madman responsible for the carnage in Dayton, Oh [...]

It can’t have escaped many folks’ notice – even those, bless their hearts, for whom the really big n [...]

Today we wait. We wait for the judges, who retired to their chambers weeks ago in the Common Cause v [...]

There was a fascinating exchange regarding North Carolina’s ongoing budget stalemate last week at a [...]