When it comes to building prosperity in North Carolina, the House has sets its sights even lower than the Governor’s already limited budget.
The House decision to use an arbitrary, flawed formula to determine spending won’t meet the needs of communities and families across the state.
The phase-in over the next three years of another poorly targeted tax cut represents yet another gimmick. The increase in the standard deduction is not an effective way for policymakers to address the upside down tax code. More than half of taxpayers who make more than $95,000 a year get a tax cut under such a proposal. North Carolina would be better off with a state Earned Income Tax Cut that helps people who work hard for low pay. An EITC wouldn’t cut taxes for people making over $95,000 a year, and it would help those who work and earn under $35,000. And since the budget proposed doesn’t account for the full cost of this tax change, it is impossible to know what will need to be cut or where taxes will need to be raised to make up for the lost revenue to communities and the state.
In pursuing more tax cuts over investment, the House is undercutting the foundations of a strong economy. The House budget will not meet the needs of North Carolina, such as improving classroom experiences for every child, revitalizing the main streets of every community and promoting the health and well-being of families and seniors. It is time for policymakers to get serious about the unmet needs in North Carolina and pursue public investment over tax cuts that benefit the rich at the expense of everyone else.