For more than a century, North Carolinians have pooled their resources to invest in great achievements, including a statewide K-12 system, the oldest public university system in the country, transportation infrastructure and a lot more. Taxes matter for the economy and society that we all enjoy so how the state government raises the billions of dollars that fuel the state budget is very important.
And, the ability of the state tax system to grow with the economy and keep up with the cost of public services and the changing needs of the population is critical. Yet, this continues to be a missing part of the debate over the impact of tax plans under consideration
Senate and House leadership say that their plans merely slow the rate of state spending to around 3 percent and 4.5 percent, respectively, compared to the long-run average of 4.8 percent. A 1.5 percentage point drop and a .3 percentage point drop in the revenue growth rate sound innocuous at first glance, but further analysis shows just how devastating this would be. Read More