NC Budget and Tax Center

Telling the FULL story on tax proposals

Here’s the full story on the House tax plan: It will increase taxes for middle- and low-income households while giving a large tax cut to the wealthy. The bottom ninety-five percent of taxpayers would see their taxes go up, on average, under the bill version that will be heard in House Appropriations today.

Those who focus only on the income tax changes and say this is a tax cut for everyone are ignoring how the sales tax changes – a major part of this tax plan – will hurt average families. Those who are using data from the Fiscal Research division to extrapolate that the majority will see a tax cut are also mistaken. These claims only obscure the harmful impact of this tax plan on the majority of North Carolinians.

The House tax plan does provide an income tax cut to taxpayers across the income spectrum, but that’s not the whole story and still 27% of all taxpayers would see an income tax increase. The greatest cut goes to the top: More than third of the income tax cut goes to the richest 1 percent. But as all North Carolinians know, we don’t just pay income taxes; we also pay sales tax. That’s why we must look at income and sales tax changes in order to evaluate whether the House tax plans are good for our state.

The House tax plan expands the services that are subject to the sales tax. Because they spend a greater share of their income on taxable goods and services to meet their basic needs, middle- and low-income families will pay more of their income in sales taxes than the wealthy. In the House plan, the expansion of the sales tax is, on average, enough to cancel out the income tax cut, on average, for the bottom 95 percent of taxpayers. Read more

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Expert responds to regressive House tax plan

Alexandra Sirota, Director of the North Carolina Budget and Tax Center and the state’s leading independent tax policy expert issued the following brief statement this morning after the House Finance Committee debated and approved legislation to overhaul North Carolina’s tax code:

“This tax plan will provide the wealthiest North Carolinians a tax cut while middle-class and low-income taxpayers pay more.

The only amendment accepted makes things worse — adding $525 million to the price tag and bringing the revenue loss each year to nearly a $1 billion.  Without this vital revenue, North Carolina can’t  make needed investments in our economy, our children’s education, the health of our seniors and the safety of our communities.”  

Click here for a fact sheet with more information on the legislation (HB 998).

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Blowhard lobbyist for corporations and the rich in town to promote tax increases on average North Carolinians

Grover NorquistHow low have things sunk in the Raleigh policy debate? This low: A front group for corporations and greedy billionaires is bringing a has-been Washington lobbyist to town to promote higher taxes on poor and middle class North Carolinians and some are calling it a “tax reform” event.

Grover Norquist is about “reforming” tax policy in the same way that Rush Limbaugh is  about “reforming” American political discourse. Norquist is a well-funded bully who has done much to ruin the well-being of the Republic. His most infamous quote — that he wants to shrink government down to the size at which it can be “drowned in the bathtub” bespeaks the hatred and violent underpinnings of his noxious, greed-is-good “philosophy.”  

Norquist will confirm the dishonesty and hypocrisy that lies at the heart of his work today when Read more

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Berger’s Louisiana tax plan

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