NC Budget and Tax Center, Uncategorized

As state lawmakers negotiate behind closed doors on a final budget deal, North Carolinians came together on Twitter to have their say on the smart investments that will best move the state forward. North Carolinians know that if we want to build a more inclusive and prosperous state for everyone, the state budget is key to getting there. Securing that goal, however, requires state lawmakers to pursue fiscal policies that enable North Carolina to reinvest and rebuild in the foundations of a strong economy.

Better choices are available than the ones that the Senate and House leadership are pursuing. That’s why every day North Carolinians and representatives from advocacy groups participated in a Twitter Chat, using the #MyNCBudget hashtag. Participants quickly pointed out that further tax cuts—as proposed in both the House and Senate budgets—would hamper the state’s ability to realize their vision for investments that benefit children, families, and communities across the state. They urged lawmakers to reinvest in early childhood education, K-12 and higher education, healthy communities, justice programs, living-wage policies, and a lot more.

There were so many strong voices that the conversation was trending in the Raleigh market. You can check out the conversation on Twitter at #MyNCBudget. Below is a preview of the discussion. Read More


Voting rightsBob Geary  has put together the compelling reasons for folks to head to Winston-Salem Monday for the march and rally for voting rights on the first day of the federal court trial of the voter suppression law passed by the General Assembly in 2013.

Geary reminds us that the law includes more than 50 pages of voting impediments, not just the photo ID provision that has received the most publicity, the provision that lawmakers softened recently in a panic before the trial started.

What remains of HB 589? It reduces the number of early-voting days from 17 to 10. (In the 2012 elections, 70 percent of black voters came early, compared to 52 percent of whites.) It eliminates same-day registration and voting during the early voting period. (Blacks, who are 22 percent of the voting population, were 34 percent of the same-day registrant-voters.) And if you vote in the wrong precinct—say, because you moved—none of your votes count, even for president.

One upshot is that people who come to an early-voting site and aren’t properly registered will be too late to get properly registered in time to vote on Election Day. North Carolina, in the top 12 states for voter turnout since same-day registration began in 2008, may sink back to the bottom.

Learn more about the march and the courts case at www.july13marchforvotingrights.org.




Legislators hoping to enjoy a few days of R&R this week may find a less than warm homecoming from local educators in their districts. The Wilmington Star News writes in a Tuesday editorial:

Education cutsTeachers, it seems as if some North Carolina legislators really want you to move to another state.

The state Senate’s budget plan would eliminate retiree health-care benefits for teachers (and any other state employees) hired after Jan. 1. 2016.

It’s not hard to see why: Health-care benefits for old people can be expensive.

On the other hand, teachers — especially North Carolina teachers — endure years of pay far lower than they could get in the private sector. Part of the trade-off is that they can expect generous — well, comfortable, well, adequate — pensions and benefits to tide them through their golden years.

Not any more, if the Senate has its way. A lot of the incentive for sticking with the public school system would be knocked away.

Officials in the state employees’ association complain that the state has been adding surcharges and other fees to its health plan for years. The increase, more than $1,300 per year for a typical state employee, active or retired — more than wipes out any pay increase that teachers and others have received in many years.

Teachers aren’t eligible for full health benefits as retirees until they’ve served for 20 years.

This comes on top of a Senate proposal to eliminate 8,500 teachers’ assistant positions across the state. The cuts supposedly would pay for around 2,000 new teacher positions to reduce class size.

In fact, eliminating those positions — more than one-third of the teachers’ assistants in the state — would cause problems in the classroom.
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Rep. Jacqueline Schaffer

Rep. Jacqueline Schaffer

Should anyone in North Carolina be able to buy a handgun without undergoing any criminal background check? Apparently Rep. Jacqueline Schaffer thinks so.

The latest version of her bill to loosen North Carolina’s gun laws includes a provision that would repeal the requirement that handgun purchasers pass a background check. That provision was in the original bill she introduced, but she took it out of a version that passed a committee last week.

The latest version of the bill that will be heard before the House Appropriations Committee Wednesday morning has the absurd provision back in it, allowing virtually anyone who wants to buy handgun to get one with no background check at all.

The public clearly does not like this idea, as 87 percent of likely voters say they support background checks for all handgun sales.

The bill has plenty of other troubling provisions, like reducing the penalty for bringing a hidden and loaded handgun into a bar that explicitly bans them and restricting a medical professional’s ability to talk about firearms with patients—a proposal that the healthcare community is actively opposing as an infringement on the doctor patient relationship.

Schaffer doesn’t want doctors talking about guns and she doesn’t want sheriffs to be able to screen people who want to buy them either.  Anything goes when it come to guns. That seems to the plan. Never mind public safety.


State lawmakers constantly claim that they are looking out for average North Carolinians. However, actions speak louder than words and proposed tax changes that the state Senate aims to enact is a good example. The tax changes would further shift the tax responsibility to low- and middle-income taxpayers and away from the wealthy and profitable corporations.

As part of the proposed tax changes, the Senate would target cash-strapped homeowners by requiring them to pay state income tax on mortgage debt forgiven by lenders, even though no actual cash is provided to the homeowners. Another proposed tax provision would no longer allow students and families to deduct expenses for tuition and related expenses such as course textbooks, supplies, and equipment.

These two proposed tax changes were excluded from the House version of the bill; however, the Senate has not budged and has kept these tax changes in its package of proposed tax law changes. Consequently, while many North Carolinians continue to await their Carolina Comeback amid an uneven recovery and a steady increase in the cost of a college education, state policymakers are essentially saying “tough luck”.

In contrast, the same Senate bill includes a tax break for businesses that fall on bad luck. The proposed tax change would allow businesses that experience economic losses (e.g. they don’t make a profit), potentially as far back as 30 years, to carry forward those losses to reduce profits generated in the years ahead. Rather than ensuring that profitable corporations pay their fair share, this tax change does the opposite.

The disturbing reality is that North Carolina’s tax system favors the wealthy and profitable corporations at the expense of average North Carolinians. Whereas distressed North Carolina homeowners who were preyed upon by unethical lenders are punished as a result of receiving much-needed consumer relief, profitable corporations are provided tax breaks in the event they fall on hard times.

Such tax changes contribute to the making of North Carolina’s upside-down tax system, which work to shift the tax responsibility to low- and middle-income taxpayers and away from the wealthy and profitable corporations.