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Phil BergerThe experts at the N.C. Budget and Tax Center will be out with more detailed analyses in the hours and days to come, but here are some preliminary takes on state Senate President Phil Berger’s big tax plan announcement/opening salvo in his race for the 2014 GOP U.S. Senate nomination:

#1 – Same ol’, same ol’ – This is what we had to wait more than four months for? After all the delays and big promises, all Berger and his aides could come up with was a plan to slash the state’s most progressive taxes (i.e. the personal income tax, the  corporate income tax and the inheritance tax) and raise more money from the tax that hits poor and middle class people the hardest — the sales tax. Oh, and since the plan won’t bring in the revenue necessary to keep government going at its already underfunded levels, the plan also contemplates lots more spending cuts to essential services. No wonder these guys are championing bills to raise class sizes and cut pre-K!

#2 – Perverting a good ideaRead More

In Kansas, tax reform isn’t exactly playing out the way some lawmakers had hoped.  The state that Grover Norquist once called “the starter gun for tax competition” has passed a series of income tax cuts over the past year with the stated goal of eventually eliminating income taxes altogether in the near future.  This “race to zero” is well underway in several states with conservative governors and legislatures.  Here’s a quick look at how that’s working out so far for Kansas:

A $2.5B budget shortfall

The Kansas Legislative Research Department is projecting a $2.5 billion revenue hole through 2018 because the legislature has yet to figure out an effective way to replace lost revenues as a result of the income tax cuts.

A threatened credit rating

Last month, a state court ruled that the Kansas legislature was breaking the law by underfunding public schools as a result of the income tax cuts, which prompted Moody’s Investors Service to warn of a negative credit risk for the state.

Less funding for public services

Concerns over the state’s credit rating aren’t the only thing that should give Kansans pause.  By starving public schools and other services critical to economic success, the state is jeopardizing future growth. Read More

If you haven’t read it yet, be sure to check out today’s edition of the Fitzsimon File. In it, Chris looks at the good, bad and ugly aspects of some of House Speaker Thom Tillis’ recent tax talk. 

He notes that Tillis is actually right about broadening the base of the sales tax, but, he also notes, Tillis is way out in right-wing fringe land when it comes to the income tax.

This is from a story in the Davidson County Dispatch from last week that helped prompt Chris’s column: Read More