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STATEMENT FROM THE N.C. BUDGET & TAX CENTER:

Senate tax proposal shifts burden from the rich to the poor

RALEIGH (May 7, 2013) — The Senate leadership has released a proposal that will harm working families and the broader economy.

By cutting income taxes and expanding the sales tax to more goods and services, the Senate leadership has pursued a shift in tax burden from the rich to the poor, not tax reform. The result is a plan that not only requires low-and middle-income families to pay more while the highest income families pay less, but also reduces the state’s ability to invest in a foundation for economic growth by cutting state revenues by $1 billion each year. That is equivalent to the entire community college system OR the combined budgets of the DHHS Divisions of Aging, Child Development, and Child Health and the Judicial Branch and NC Biotechnology Center.

 

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Bobby JindalMaybe it’s no coincidence that Senator Phil Berger’s new plan to cut taxes at the top, reduce public services and raise taxes on the working poor appears to have a lot in common with Louisiana Governor Bobby Jindal’s failed tax plan. It turns out the new and schnazzy website Berger unveiled today was produced by a conservative Louisiana ad firm – Innovative Advertising LLC.

As you can see by clicking here, the website domain www.nctaxcut.com is registered to: Read More

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The wonks at the Budget and Tax Center are out with a new report — “Cutting corporate income taxes won’t be an economic boon for North Carolina” — that ought to be a “must read” for state government leaders.

It lists three top reasons for not cutting corporate taxes:

  1. Corporate income tax cuts don’t pay for themselves and put key investments at risk.
  2. A very small share of corporations would benefit.
  3. Corporations are unlikely to expand or relocate because of state income tax cuts

It’s a quick, too-the-point read that you should check out too. Click here to do so.

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April 15Suggested readings for Tax Day 2013:

Joseph Stiglitz in the New York Times on “A Tax System Stacked Against the 99 Percent,”

Travis Waldron at Think Progress on “Five Ways the Tax Code Subsidizes the Wealthiest Americans,”

David Cay Johnston on the fast-shrinking budget of our national tax police, and, of course,

our own recent series – “Profiles in corporate tax avoidance” featuring profiles of Duke Energy, Merck & Co. and International Paper.

 

 

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In the third installment in our three-part series on corporate tax avoiders with strong connections to North Carolina, NC Policy Watch has released a profile of International Paper, Co.

Here are some of the fast and disturbing facts on the giant multi-national (the largest company of its kind in the world) that owns 18 separate facilities in North Carolina:

  • Total assets $27 billion
  • 2008-2012 profits combined: $2.8 Billion
  • Net 2008-12 federal tax rate: 2.6% (the offical corporate tax rate is 35%)
  • 2008-2012 federal taxes paid: $74 million (if paid at the 35% rate, this figure would have been $980 million)
  • Five-year compensation of CEO John Faraci (as of April 2012):  $49.3 million

Read more about International Paper (as well as two other large tax avoiders — Duke Energy and Merck & Co.) by clicking here.