In case you missed it, the good folks at the N.C. Budget and Tax Center have prepared a nice contribution for your Thanksgiving potluck — a series of talking points to help you converse with your less-well-informed dinner companions. Enjoy!

Here are some key facts to throw out there as you pass the gravy boat and say “yes, please” to a second – or third – piece of pecan pie.

WHEN THEY SAY: “We need to attract more businesses to relocate here if we want North Carolina to grow. Cutting taxes, regulations, and unemployment insurance and not expanding Medicaid is the best way to do that.”

YOU SAY: First of all, it’s really people like you and me, consumers, who create jobs. Businesses hire when they see a demand for their products, so job creation really starts with making sure we earn a good living and feel secure enough to spend.

Even if we’re talking about where large companies choose to invest, state taxes just aren’t that big of a deal. You have to turn a profit before you pay taxes, so that’s what companies are thinking about first and foremost. Most companies look for educated workers, a good transportation system, and a place that their employees want to live before they think about taxes.

If North Carolina is going to do better, we need to focus on policies that will make everyone feel more economically secure.

WANT TO READ MORE? BTC Policy Basic: The Reality of Tax Cuts

WHEN THEY SAY: “The Carolina Comeback is real! Clearly these policies are working.”

YOU SAY: (Stage directions optional): The Carolina Comeback sounds nice but it’s not the reality for most North Carolinians and communities in our state.

First off, it’s a U.S. comeback, nothing special to North Carolina. We went into the recession as a country, and the recovery has happened nationwide. Read More


More evidence is mounting everyday that the investment-killer known as TABOR would be disastrous for North Carolina.

Now, NC Women United has compiled a tremendous list of reasons that TABOR will jeopardize the future of NC’s women and families. By imposing artificial spending limits that aren’t related to economic reality, we will miss the chance to build prosperity for everyone in North Carolina. A quick excerpt:

As you may imagine, that is a recipe for a state that will eventually fail all of its citizens, particularly its most vulnerable. This legislation has been introduced in 30 states, and only one – Colorado – has ever fully accepted it and implemented it. And that went so well, the citizens of CO voted to get rid of key pieces of it. …

The state provides a lot of services to everyone; that’s its job.  In particular, it provides services to the most vulnerable citizens that can’t get their needs met in the private market. The for-profit market stays away from certain services – like domestic and sexual violence crisis services, and services to assist the homeless and those experiencing food insecurity –  because there is no real opportunity to make a profit from those services (and also the nature of for-profit business means those businesses may feel more vested in making sure there is a continued need for the product they are selling rather than for solving a social problem). This is why we have a balance between public and private enterprise. TABOR legislation plays on the widespread misunderstanding the public has about how government is funded, and what services the government actually provides to us all (see this chart for an example of the services that may be left out with TABOR in place). These services help not just individuals, but also businesses, who make use of the investments we make in our common good – education, infrastructure, a thriving middle class – to sustain their organizations.


A preliminary analysis of the Governor’s proposed budget by the experts at the N.C. Budget and Tax Center reports that: 

“The proposal was thin on the details for how and who would fund the spending priorities that were laid out.  The one revenue change supported by the Governor was the repeal of the state estate tax, a move that would result in the loss of $52 million.  Last year, just 23 multi-million dollar estates paid the state estate tax.  Because there was no significant change in availability, the budget is able to expand investments in certain areas by relying on spending cuts in other areas, tuition and fee increases, and the modest improvement in revenue collections to date. Below is a helpful graph to put the Governor’s proposal in perspective relative to what is needed to maintain current service levels or reach pre-recession levels.” Read More

NC Budget and Tax Center

Across North Carolina and the nation at large, we’re seeing a fundamental policy debate playing itself out, which boiled down to its essence asks a single, critical question: Do government benefits promote dependency among those who receive those benefits, or do they promote personal responsibility and a common baseline opportunity for all Americans?

The big picture answer is that everyone benefits from our government’s spending on things like schools, roads, public health.  But the narrower part of this debate focuses on entitlement spending who receives it and what is required in exchange for these supports.  As a recent study makes clear, over 90% of entitlement spending benefits like Medicare, Social Security, and SNAP go to Americans who are either working, paying into the system, have paid into the system in the past, or have disabilities.  This spending provides a critical support that promotes the ideal that we’re all in this together.

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