The tax plan passed by Senate Republicans is an expensive giveaway to major corporations and wealthy households that offers little or nothing to most families and ultimately hurts many. The plan will end health care for millions of Americans, raise premiums, and increase deficits, which will in turn be used to justify dangerous cuts that will threaten working families. It is no surprise that this is the most unpopular tax legislation in three decades.
This was just the first step in a two-step agenda that will seek deep budget cuts that would further hurt low- and middle-income people by targeting everything from nutrition assistance for families to education, Medicaid, and infrastructure. And because proposals to cut federal spending almost always involve shifting costs down to state and local governments, this agenda will put even more pressure on North Carolina’s budget, with cuts to state services with widely shared benefits—such as schools, roads, parks, and libraries—likely to follow.
Because of our own flawed experiment with trickle-down economics, our state is challenged to even sustain current service levels for the growing population. Further cuts to federal funds to deliver services in North Carolina—used in the final budget for priorities like NC pre-K and infrastructure—should lead to a suspension of scheduled tax cuts in the state in January 2019.
The whole North Carolina delegation should commit now to stand against budget cuts that would further hurt everyday Americans and North Carolinians. The General Assembly should follow suit and commit to planning for the cost shift likely to leave even more needs unmet in the future.
For more on the impact of the final tax plan on North Carolina, see the following analysis by ITEP: