Archives

NC Budget and Tax Center

Proponents of the Joint Tax Plan claim that all taxpayers will benefit from cutting the personal income tax rate. During debate on the tax plan on yesterday, opponents highlighted analysis provided by Fiscal Research that confirmed that some taxpayers would indeed see their income taxes increase under the tax plan. Below are additional examples of taxpayers who would see their income taxes increase.

 

Slide1

NC Budget and Tax Center

Despite the claims that North Carolina needs to cut taxes and shift the tax load on to middle-class and low-income taxpayers to remain competitive, such an approach will actually undermine the competitiveness that our state has achieved. If we look across a range of metrics on outcomes for North Carolinians, businesses and the economy, North Carolina is indeed competitive. 

Tax rates are not the sole factor that drives the state’s economy nor does it make or break the reputation of North Carolina as a desired place to raise a family and operate a business. Below are four examples, among many, that highlight areas in which North Carolina has made positive progress. Read More

NC Budget and Tax Center

The newest (5th version) of the Senate tax plan is said to be a modified version that addresses various concerns in early versions of the plan. Nevertheless, the bill maintains its core elements – huge tax cuts for the wealthy and profitable corporations and significant revenue loss – and returns to expanding the sales tax to more goods and services (though not as comprehensive as one of the earliest versions) in an effort to reduce the revenue loss slightly from the prior $1.3 billion to now nearly $1 billion.

The repeated claim made by Senator Berger and proponents that all taxpayers would see an income tax cut under the modified tax plan is simply not true. Cutting the personal income tax rate may appear to benefit all taxpayers but it doesn’t and the tax plan has many other moving parts that will shift the tax load to low- and middle-income taxpayers. For example, by eliminating the personal exemption allowance, the state EITC, and the additional standard deduction allowance for seniors, many taxpayers fare worse under the newest Senate plan compared to current tax laws.

Below are examples of particular taxpayer profiles in which the taxpayer would pay more in income taxes under the newest Senate plan. Read More

Uncategorized

Members of the League of Women Voters of the Piedmont Triad sent a letter (LWV letter) to Gov. Pat McCrory to dispute his characterization of Moral Monday protesters as “outside agitators.” In fact, “pillars of their community” is a more apt description of the LWVPT. Below is their letter:

June 19, 2013

Dear Governor McCrory:

We are concerned that you and the members of the General Assembly are assuming that the Moral Monday participants are from outside North Carolina and that we are simply agitators. We are neither.

We are members of the League of Women Voters of the Piedmont Triad (LWVPT), a nonpartisan organization with 165 members. We reside in the heart of North Carolina, and we are participants in Moral Mondays. We are thoughtful, intelligent women and men, many with advanced degrees, and all with a wide range of knowledge, business skills, professional abilities, and vast experience as community volunteers. Read More

NC Budget and Tax Center

The latest Senate tax plan continues to provide large tax cuts to the wealthiest taxpayers and profitable corporations, while shifting more of the overall tax load to middle-class families and reducing revenue for schools, health care and other services by nearly $1 billion each year when fully implemented. Yesterday, Senator Berger released the Senate’s latest tax plan after a week of negotiations behind closed doors with the House. While Senators state that many of the criticisms of their earlier bill have been addressed, the loss of revenue remains high.

In order to bring down the overall cost of the bill – from $1.3 billion to just under $1 billion under the new tax plan – the Senate plan shifts the tax load to the bottom 80 percent of taxpayers, who on average will see their taxes increase. This tax shift is a result of the combined impact of expanding the sales tax base to more goods and services, the loss of the personal exemption and the cap on itemized deductions. By contrast, the top 1 percent will see their taxes cut on average by nearly $11,000, with 56 percent of the total net tax going to the richest taxpayers.

 Senate 5thed Chart

The Senate tax plan fails to address the state’s upside-down tax system and actually makes it worse by skewing it even more in favor of the wealthy and profitable corporations. The significant reduction in revenue means further cuts to public education, health care, and public safety in the years ahead. A tax plan that shifts the tax load to low- and middle-income families is not a plan that promotes economic opportunity for all North Carolinians.