NC Budget and Tax Center

State lawmakers have introduced House Bill 117 (HB 117) that pushes for more tax cuts that benefit corporations, even as the state faces an ongoing revenue shortfall resulting from the tax plan passed in 2013.

State lawmakers would like to change an arcane tax provision that determines the amount of state income taxes paid by corporations. The state’s current tax system uses a formula that considers a corporation’s property, payroll, and sales in North Carolina. However, the tax change – referred to as single sales factor (SSF) apportionment formula – would only consider the sales component for certain corporations.

Proponents of this tax change claim that it will boost capital investment in the state and create more jobs. However, as BTC has highlighted before, this claim is not supported by real-world evidence. What will happen, however, is a further reduction in revenue available for public investments and services that businesses depend and rely on.

Here’s a quick recap on why North Carolina should not shift to a SSF apportionment formula: Read More

News

*** Editor’s note: Policy Watch reporter Sarah Ovaska was at today’s meeting at UNC-Charlotte where the Board of Governors made their decision. She will have a full story on today’s developments and reaction coming-up this afternoon on the Progressive Pulse.***

 

‘I have no words to match the gratitude I feel for the astonishing support the Poverty Center has Gene Nicholreceived, in recent weeks, from thousands across North Carolina and the nation. Students, faculty, alumni, engaged citizens, activists, social services providers, political, religious and institutional leaders, and perhaps most movingly, Tar Heels living at or below the edge of poverty have raised their voices and banners in protest. Whether pressing for research on economic justice, or, more broadly, for university-defining traditions of academic freedom, their words and actions have seared my heart and, not infrequently, moistened my eyes. They are not to be forgotten.’

Commentary

UNCNC Policy Watch reporter Sarah Ovaska is on the scene in Charlotte today so be sure to follow her tweets at @SarahOvaska as the UNC Board of Governors takes up multiple major controversies. Meanwhile, if you’d like to get a better handle on what the board ought to be doing today, be sure to read these two pieces:

#1 is NC Council of Churches contributor Steve Ford’s excellent essay which was posted on the main Policy Watch site on Wednesday: “UNC Board of Governors should reject recommendation to close poverty center.” To quote:

“The Board of Governors committee that now calls for abolishing the poverty center may have done its perceived bidding. The full board, however, would do well to acknowledge the reality that Gene Nichol as a tenured law professor won’t easily be silenced. The board’s wise play would be to show some healthy independence from legislative pressure and to extend the center’s lease on life, in full recognition of how it helps the university system carry out its public service mission.”

#2 is the lead editorial in today’s Charlotte Observer: “Tough times for UNC system.” As the Observer rightfully notes: Read More

Commentary

Both the Greensboro News & Record and Raleigh’s News & Observer take Senator Thom Tillis to task this morning for his “‘no” vote in the Senate Judiciary Committee yesterday on the confirmation of Attorney General nominee (and North Carolina native) Loretta Lynch.

Lynch’s one-time hometown paper, the News & Record pus it this way:

tillis-newsandrecord“Thom Tillis said it was his most difficult decision in 45 days as a U.S. senator to oppose Greensboro native Loretta Lynch’s confirmation as attorney general.

It didn’t seem hard for him at all. While he made condescending comments about Lynch’s family ‘beaming with pride’ at her confirmation hearing last month, noting ‘she was raised right,’ he was clearly against her from the start….

Lynch was ‘raised right’ in Greensboro and Durham. She was raised in a family that participated in the civil rights movement in the 1950s and 1960s. It is disappointing but not surprising, given his record as a state legislator, that Tillis has little appreciation for those experiences and how they would shape Lynch’s views today.

Republican Sens. Lindsey Graham of South Carolina, Orrin Hatch of Utah and Jeff Flake of Arizona joined Judiciary Committee Democrats in voting for Lynch’s confirmation. The favorable vote of 12-8 will move the nomination to the Senate floor. It’s a shame that Tillis, Lynch’s home-state senator, couldn’t join those 12.”

And here’s the N&O – which blasted Richard Burr as well:

“Beyond being wrongheaded about the confirmation process, Tillis and Burr are simply classless in standing against Lynch. Read More

NC Budget and Tax Center

New analysis from the Economic Policy Institute on the performance of wages across the distribution in 2014 finds that with few exceptions inflation-adjusted wages fell or stagnated for most groups. This isn’t anything new as there has been a long-term trend of wage stagnation that has meant the majority of workers are struggling to make ends meet even as they are contributing to grow the economy.

What is new and important from this analysis is what happened for wage earners at the bottom end of the wage scale. Workers in the 10th percentile saw their wages increase on an hourly basis by 11 cents or by 1.3 percent. The authors attribute this increase to the series of state-level minimum wage increases that have occurred in states in 2014 and which have bene proven to lift wages particularly for those at the bottom of the wage distribution. It turns out that nearly half of the country’s workforce lived in states where the minimum wage was increased in 2014.

For those states that haven’t raised the minimum wage, here is some further evidence of the real benefit of doing so. As the report author notes:

The great news in this story is that policy can actually affect the labor market. And, it is imperative that we use all the policy levers at our disposal to help rejuvenate the economy to create jobs and build stronger income growth for the 99%.

To read the full report, click here.