Senate leaders and their supporters at the conservative, D.C.-based Tax Foundation argue that the state’s revenue collections are a sign that North Carolina can cut income taxes again for the wealthy and profitable corporations. We can’t expect to continue to compete and deliver a better quality of life to North Carolinians if we continue the march to zero income tax.
The state’s Fiscal Research Division has conservatively estimated $680 million in rising costs over the next fiscal year due to increased enrollment in public schools and universities, rising health care costs and requirements to pay down debt and match federal dollars for rebuilding Eastern North Carolina. This figure does not include the investments with bipartisan support that are required to protect children in the foster care system, expand access to job training (especially in rural communities), increasing slots in early childhood programs, and fully addressing the housing, small business and agricultural damage of Hurricane Matthew.
Cutting taxes again to the tune of $1 billion in a way that primarily benefits the state’s wealthiest and profitable corporations is fiscally irresponsible in the face of these identified needs. It fails to consider as well the unknown costs of a federal budget that contemplates at least $340 million in cuts to federal grants for North Carolina. Read more