Tag: Legislature

Louisiana Governor “parks” unpopular tax plan

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May 15, 2013 at 10:15 amCategory:NC Budget and Tax Center

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This is the third of a three-part blog series presenting voices from other states that have unsuccessfully pursued versions of comprehensive tax “reform”. (See Part 1 and Part 2)

Commentary provided by Jan Moller, Director of the Louisiana Budget Project in Baton Rouge, LA.

Louisiana Budget Project

Louisiana is a conservative state with a very conservative governor who, until recently, was one of the most popular in the country.

But when Gov. Bobby Jindal unveiled a “revenue neutral” plan to eliminate Louisiana’s individual and corporate income taxes this year, something extraordinary happened: the people of Louisiana stood up, and the governor backed down. Less than three months after the plan was announced, the governor admitted defeat and said he was “parking” his package of bills. A week later, the chairman of the House tax-writing committee said any efforts to scrap the income tax were dead for the year. Read More…

Double-standard in defining poverty could limit educational opportunities for some

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May 14, 2013 at 3:36 pmCategory:NC Budget and Tax Center | Poverty and Policy Matters

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Education is perhaps the most promising public investment for promoting long-term economic prosperity. That’s why providing low-income children access to preschool and providing a high-quality education to all students in North Carolina’s public schools is vital to our state’s future.

Yet, policymakers have introduced education bills that inconsistently define “poverty” and “at-risk” in ways that would reduce access to early learning for low-income 4-year olds and divert needed public school funding to private schools. Read More…

Georgia’s failed tax reform effort holds a warning for North Carolina

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May 9, 2013 at 1:06 pmCategory:NC Budget and Tax Center | Uncategorized

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This is the first of a four-part blog series presenting voices from other states that have unsuccessfully pursued versions of comprehensive tax “reform.”

gbpi

Commentary provided by Alan Essig, Executive Director of the Georgia Budget and Policy Institute in Atlanta, GA.

As North Carolina considers major tax reform, it’s useful to take a look at a similar effort in Georgia a few years ago, because what started out as a plan to overhaul the state’s tax system in a responsible way that preserved important state investments quickly devolved into a proposal that put ideology and politics above the welfare of Georgians.

The core of Georgia’s problem was similar to what you are now seeing in North Carolina: the pursuit of drastic income tax cuts paired with a failure to replace this with another revenue source makes it impossible for a state to provide the services that people and businesses depend on every day, like roads, schools, and safe communities. Georgia wisely chose to reject such a proposal in 2011, just as North Carolina should this year. Read More…

Eliminating estate tax provides tax cut to North Carolina’s wealthiest individuals

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May 8, 2013 at 4:30 pmCategory:NC Budget and Tax Center

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Comprehensive tax reform remains vague and “short on details” as the 2013 legislative session is beyond its halfway point. Nevertheless, stand-alone bills continue to make their way through the legislative process that would provide tax cuts to the state’s wealthiest individuals. Policymakers have just voted in the House to eliminate the estate tax and both the Senate leadership and the Governor have stated their commitment to do the same.

Proponents of eliminating the estate tax argue that the tax punishes small businesses and small farms in North Carolina. Evidence shows this claim to be false. The estate tax applies to a small number of taxpayers in North Carolina – less than one percent. For tax year 2011, only 23 North Carolina tax filers were subject to the estate tax, according to the North Carolina Department of Revenue. The reality is that the overwhelming majority of small businesses and small farms will not a pay an estate tax while heirs of the wealthiest estates in the state will. Read More…

Forecasting today’s legislative lowlights

May 2, 2013 at 11:08 amCategory:Uncategorized

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LegislatureAnother day on Jones Street, another day of rolling back the 20th Century. Here are just some of the regressive proposals on tap for today along with the names they ought ot be known by:

The Predatory Lending Protection and Expansion Act — The Senate will vote on this proposal to jack up interest rates and fees on consumer finance loans at a time of record low interest rates.

The Erosion of NC’s Commitment to Public Education Act — The Senate will also take up this proposal to create a separate authority to (sort of) oversee charter schools. The new conservative head of the State Board of Education called the proposal unconstitutional this morning. Read More…