Author

Falling Behind in NC, NC Budget and Tax Center

Lawmakers let the state Earned Income Tax Credit expire at the end of 2013, making North Carolina the first state in nearly 30 years to eliminate this proven anti-poverty tool. The state EITC helps promote shared economic prosperity for all North Carolinians. It goes only to working people with modest incomes, offering extra support to pay for basic necessities.

In a new video from the series “North Carolina: First in Flight from the EITC,” Heather Partridge talks about how the state EITC has helped her family. Heather lives with her husband and three daughters in Gibsonville, where she works at Hardee’s and earns $7.55 an hour – just barely above the state minimum wage of $7.25. In past years, the EITC has helped Heather pay for everyday goods for her children as well as pay off debt.  Read More

Uncategorized

Last week, the U.S. Department of Justice and U.S. Department of Education issued new guidelines that outline the legal responsibility of schools to enroll all students, regardless of a child’s or parent’s immigration status. It’s an important step in ensuring the right of every child to a public education, and fortunately is one that will be carried out here in North Carolina as well.

On May 12, State Superintendent June Atkinson sent a letter to all North Carolina school districts, reminding them of the policies that prohibit the schools from denying or delaying enrollment for students.

The letter reads:

School districts, whether through registration, student information verification, or other data collection, may not require Social Security numbers, may not ask questions regarding or evidence of immigration status, or for any other documentation that is not required in order to register or enroll in school.

Read More

Uncategorized

As we reflect on the 50 years since President Johnson waged a “War on Poverty,” it is important to also examine our public policy response to the more recent economic downturn that pushed many more Americans into poverty. The historic job loss of the Great Recession created a hardship deeper and more widespread than any previous modern recession, and recalled for many the Great Depression.

Yet policymakers’ response to growing poverty and countless struggling families across the U.S. was largely opposite that of the lessons learned from previous downturns.  Instead of pursuing robust stimulus spending to support struggling families or supporting job creation directly, policymakers opted for austerity.

Austerity is largely a term used to refer to European responses to the Great Recession but the American response took much the same tact. Policymakers dismantled investments in tools that have proven they can ameliorate families’ struggles for their most basic needs and maintain economic activity while the private sector recovers.  Austerity came to the United States in the form of lower-than-needed stimulus spending and spending cuts. Most recently, sequestration reduced government spending dramatically at a time when demand for services is high and the private sector has only reluctantly created jobs.

Read More

Uncategorized

The tax plan that North Carolina’s Senate leaders unveiled yesterday should not be mistaken for tax reform. It is, in reality, a plan to gut North Carolina’s schools, public colleges and universities, infrastructure, and other key state investments that promote long-run prosperity.

The plan’s massive tax cuts, which would mainly benefit large corporations and the wealthy, would cost the state $1.3 billion each year once fully in place, roughly the entire annual budget for North Carolina’s community colleges. Blowing such a massive hole in the budget would jeopardize the quality public schools, nationally-recognized public university system, and other assets that have attracted businesses — and jobs — to the state in industries like financial services and scientific research.

Other states that considered similar proposals this year backed off in part because of the reality that huge tax cuts for the wealthy must be paid for with untenable reductions in funding for schools and other state services, tax hikes on others, or both. The North Carolina Senate’s plan ignores that reality and opts instead for wishful thinking.

Claims that the Senate plan will cause North Carolina’s economy to boom are simply empty promises. Any boost from cutting income taxes will be canceled out by the spending cuts or tax increases the state will be forced to adopt to balance its budget.

Elimination of the corporate income tax is largely a giveaway to multistate corporations that — rather than creating jobs — will likely stick the savings in an out-of-state bank or use it to pay higher dividends to stockholders, most of whom don’t live in North Carolina.

The plan’s personal income tax cuts won’t likely create jobs, either. Most small businesses would get a tax cut so small that it wouldn’t even cover one worker’s salary. Plus, small businesses rely on state education, roads, and other services that would degrade year after year under this plan.

To ensure a bright economic future, North Carolina should focus on strengthening the K-12 and higher education systems that have set the state apart in the past but faced deep cuts in recent years due to the recession. Blowing a huge hole in the state budget would make that crucial task much harder. North Carolina has nothing to gain and much to lose from the Senate’s misguided plan.

Uncategorized

REBUILDNC-1-FINAL1-1024x727In light of the inauspicious start to the New Year at the General Assembly – where proposals are already being considered that could be harmful to thousands of North Carolinians – Together NC is kicking off 2013 with a new social media campaign, urging the state’s newly elected legislators to help begin rebuilding North Carolina.

In the aptly named #RebuildNC campaign, Together NC will post on Twitter and Facebook about how North Carolina’s leaders must stop tearing down, underfunding, and underserving the state’s critical public investments

The campaign – with tweets and Facebook posts in the form of graphics, educational links, and quizzes – will lead up to the official inaugural events next weekend. Take a few minutes over these next 10 days to follow Together NC’s activity, re-tweet and share content from the Together NC social media accounts on your organization’s pages and your personal pages.

It’s time North Carolina’s lawmakers stop tearing down public investments – and start building them up instead. Make a simple New Year’s resolution to help guide lawmakers back to policies that will help #RebuildNC.