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From our colleagues at the N.C. Budget and Tax Center:

Jared bernsteinGet your tickets today for a conversation about what’s next for North Carolina’s economy

What will it take for North Carolina’s economy to work for everyone not just a few? The state’s economy is recovering along with the nation but there are troubling signs that the expansion is not reaching many in North Carolina.

Join us for a special keynote address and conversation with national policy expert Jared Bernstein.

From Recovery to Prosperity: What North Carolina Needs to Build an Economy for All

January 21st at 11:30 am
McKimmon Center at NC State University
1101 Gorman Street, Raleigh, NC

Individual Tickets $20
Student Tickets $10

Jared Bernstein, Senior Fellow at the Center on Budget and Policy Priorities, will share his research on the state of the economy, insights into North Carolina’s performance relative to the nation and policy ideas that will improve employment outcomes and support broad economic well-being across the state.

The Budget & Tax Center will also offer a brief presentation on how we can ensure opportunity and prosperity are broadly shared among all North Carolinians.

It’s clear that a new approach to our economy is needed. Median incomes and wages continue to fall, costs for the basics are rising and many of the pathways out of poverty or protections for people struggling have been eroded due to tax cuts and flawed policy choices at the state level. Beyond the rhetoric, the facts on the ground demonstrate that North Carolina has not connected all communities and provided opportunities for everyone to be successful in the economy.

BUY TICKETS TODAY!

Table sponsorships are also available. Contact Alexandra Sirota at 919-861-1468 or alexandra@ncjustice.org to find out more.

Commentary

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In case you missed it, be sure to check out today’s second installment in our new special report: “Altered State: How 5 years of conservative rule have redefined North Carolina.” “Public investment falls, tax responsibility shifts” is written by Alexandra Sirota of the North Carolina Budget and Tax Center and it documents the amazing shift that has occurred in how North Carolina funds government — a shift that has been engineered by the state’s conservative political leadership. Here’s the opening:

“Public investments are essential building blocks of long-term economic growth and shared prosperity. Decades ago, North Carolina diverged from its Southern neighbors by investing in good roads, quality public schools and universities and early childhood programs.

Since the official recovery began in 2009 — when rebuilding from the Great Recession would have been possible — state lawmakers have turned away from that tradition, choosing to sharply limit public spending in favor of tax cuts. Overall, state support for services in the 2016 fiscal year will be nearly a full percentage point below historic investment levels as a share of the economy.

"State spending as part of the economy — measured by state personal income — has consistently fallen in the past few years."— "A Summary of the Fiscal Year 2015–2017 Budget," BTC Reports, October 2014 (Source: N.C. Budget & Tax Center)

“State spending as part of the economy — measured by state personal income — has consistently fallen in the past few years.”— “A Summary of the Fiscal Year 2015–2017 Budget,” BTC Reports, October 2014 (Source: N.C. Budget & Tax Center)

In fact, state spending as a share of the economy — measured by state personal income — has fallen every year since 2009. The new budget continues this trend, and caps off the only period in more than four decades in which state spending declined as a part of the economy for more than five straight years.

The tax code has been radically transformed since 2010 in a way that makes adequate funding 0f core public services more difficult.

Click here to read the entire essay. And be sure to check back at the Altered State website tomorrow morning and each day through December 21. We’ll be rolling out new stories over the next two and a half weeks on everything from taxes to public education to environmental protection.

Commentary

In case you missed it, the good folks at the N.C. Budget and Tax Center have prepared a nice contribution for your Thanksgiving potluck — a series of talking points to help you converse with your less-well-informed dinner companions. Enjoy!

Here are some key facts to throw out there as you pass the gravy boat and say “yes, please” to a second – or third – piece of pecan pie.

WHEN THEY SAY: “We need to attract more businesses to relocate here if we want North Carolina to grow. Cutting taxes, regulations, and unemployment insurance and not expanding Medicaid is the best way to do that.”

YOU SAY: First of all, it’s really people like you and me, consumers, who create jobs. Businesses hire when they see a demand for their products, so job creation really starts with making sure we earn a good living and feel secure enough to spend.

Even if we’re talking about where large companies choose to invest, state taxes just aren’t that big of a deal. You have to turn a profit before you pay taxes, so that’s what companies are thinking about first and foremost. Most companies look for educated workers, a good transportation system, and a place that their employees want to live before they think about taxes.

If North Carolina is going to do better, we need to focus on policies that will make everyone feel more economically secure.

WANT TO READ MORE? BTC Policy Basic: The Reality of Tax Cuts

WHEN THEY SAY: “The Carolina Comeback is real! Clearly these policies are working.”

YOU SAY: (Stage directions optional): The Carolina Comeback sounds nice but it’s not the reality for most North Carolinians and communities in our state.

First off, it’s a U.S. comeback, nothing special to North Carolina. We went into the recession as a country, and the recovery has happened nationwide. Read More

Commentary

In case you missed it, the latest edition of the Justice Center’s “Prosperity Watch” has some less-than-encourgaing news about the “Carolina Comeback”:

With wages stagnating, the price of many necessities soars

Getting by is getting harder in North Carolina. The cost of some basic necessities are growing faster than wages in North Carolina, catching households that have to spend the bulk of their income on things like food and housing in a tightening vice. When families don’t earn enough to make ends meet, they can’t buy goods and services that provide jobs for other North Carolinians, so the entire economy slows down.

Inflation has been low over the last year or so, with some economists arguing that this should blunt concerns over wage stagnation. From the end of 2007 through July of this year, the cost of all goods and services that the average household purchases increased by 12.6%, while wages increased by almost the same amount. However, as can be seen above, the cost of essential needs like food and shelter has actually outpaced many other types of consumer goods. The price of shelter increased by 14.5% from December 2007 to mid-2015, and the cost of food went up almost 20% during that same period, growth that outpaces wages in both instances.

The practical effect of these trends is that families living in poverty are feeling the squeeze more than the average household. It should come as no surprise that low-income families are forced to spend a larger share of their income on basic necessities than their more prosperous neighbors.

For example, households in the bottom fifth of income spend 16% of their outlays on food, compared to 11% for the top income group. Households at the bottom of the income distribution spend over 40% of their budget on housing, while the top group comes in around 30%. The real world consequence of this is that poorer families have seen the cost of what they have to spend their money on go up much faster than middle of high income families.

High-level economic data can often shield the most economically vulnerable from view, masking the daily challenges that arise when wages don’t keep up with the growing costs of the basics.  Before anyone declares victory in North Carolina, we need to see wage growth that allows working people, and the economy, to make progress.

Commentary

Budget see sawAs a one-time civics teacher, my job was to explain to 8th graders how our government works. On one level, it was simple: people vote for leaders who will represent them. The leaders make decisions on their behalf.

But, of course, that wasn’t the whole story. I usually stumbled through the part about politics and special interests. I labored to explain out how our tax system has grown increasingly regressive, shifting the responsibility off of large corporations and onto the pocketbooks of their parents. Inequality is an ugly reality, but a reality nonetheless.

North Carolinians understand the inequality that exists in our economy. They also understand how to fix it. On Wednesday, North Carolinians from across the state delivered a petition calling on lawmakers to listen to them – and not the American Legislative Exchange Council (ALEC) – when it comes to budget and tax choices. The petition, which included more than 6,000 signatures (and which was accompanied by a sign-on letter from 17 organizations representing tens of thousands of individuals) calls for an equitable and adequate tax system that keeps North Carolina strong.

As legislators continue to work on a final budget, many North Carolinians are concerned that their leaders will ignore their voices and instead choose to listen to ALEC. ALEC, a national arch-conservative group funded by large corporations, has designed many of the policies, such as tax cuts, low investments for protecting our communities, and giveaways to big corporations, that have moved North Carolina backwards. Indeed, as the post below notes, many lawmakers left Raleigh early this week to attend ALEC’s annual conference in San Diego.

At a press conference announcing the delivery of the petition, Tazra Mitchell, a policy analyst with the Budget & Tax Center, explained, “The disproven theory that corporate tax cuts help our economy move forward is economic snake oil that ALEC sells to state legislators around the country … These policies are a prescription for poor results that hinder the ability of our state to set up a foundation for future growth.”

After Mitchell’s remarks, more than a dozen North Carolinas spoke out on why they felt investments are critical to a strong and equitable economy. Some examples: Read More