Archives

NC Budget and Tax Center

Last year state leaders passed a tax plan that will overwhelmingly benefit the wealthy and profitable corporations. The plan does little to rid the tax code of costly tax loopholes, it makes the state’s upside-down tax system even worse, and it reduces annual revenue by more than $650 million once all the new tax changes are in place.

As Gov. McCrory and state leaders try and “find’ revenue to provide a modest pay raise to only a portion of North Carolina’s public school teachers, more tax cuts for profitable corporations look to be on the horizon.

This week BTC released a policy brief that highlights an arcane tax policy change proposed by members of the NC General Assembly’s Revenue Laws Committees. This tax change – referred to as a single sales factor (SSF) apportionment formula – would only consider the sales component in determining the amount of state income taxes paid by corporations. The state’s current tax system uses a formula that considers a corporation’s property, payroll, and sales in North Carolina.

This tax change would provide a tax cut to only certain corporations, with no guarantee of job creation or a boost in economic growth for the state and would reduce revenue available for public investments by $90 million for FY 2015. This revenue loss would be in addition to the massive annual revenue loss under the tax plan passed last year. Read More

Uncategorized

Pat McCrory 4Maybe it’s the ongoing game of musical chairs in Gov. Pat McCrory’s communications staff or maybe it’s just the man himself, but whatever it is, the Governor’s public pronouncements continue to be peppered with admissions and allegations that bespeak a remarkable degree of obliviousness to the facts and the implications of his administration’s policies.

Yesterday morning’s announcement on raising teacher pay for new teachers featured a classic example. As the Governor began his remarks on his proposal and attempted to lay out the groundwork for it, he made the following rather amazing (and, one has to note, grammatically-challenged) admission:

“Today sadly, the starting teacher pay in North Carolina makes only $30,800. You know, that’s not even enough to raise a family or to pay off student loans, which this new generation of teachers are having to borrow money to go to college at this point in time. How do we expect someone to pay back that loan at that starting salary?”

While the Guv deserves an “attaboy” for making such a statement (yes, teachers make too little and government should do something about it!) he deserves nothing but a big “what the heck?!” for the stunning hypocrisy and lack of awareness it shows with respect to so many of his other policies. Read More

NC Budget and Tax Center

When it comes to educating our children, the public is pretty clear in understanding you get what you pay for.

In a recent poll released by High Point University, 72% of respondents said they would favor a tax increase to raise teacher pay in North Carolina to the national average. These results are similar to a Public Policy Polling survey conducted in November which revealed that 68% of North Carolinians opposed cutting funding for public schools to provide taxpayers a tax cut.

Despite North Carolinians’ willingness to pay to ensure adequate funding of our public schools so that children can be better prepared for a 21st century economy, legislators moved in the opposite direction this past legislative session. Not only were teachers, whose salaries ranked 46th in the nation in 2012, denied a pay increase this year, but the salary incentive for teachers who earn master’s degree was eliminated and additional cuts were made to professional development and recruitment programs.

The legislature further undermined the ability of public education to prepare children for their future by reducing funds available for instructional supplies and textbooks, increasing teacher to student ratios and cutting funding for teacher assistants.

Read More

NC Budget and Tax Center

This month, taxpayers receiving their paychecks are seeing changes in their take-home pay.  Some will see more, some less since the tax plan passed last year delivers income tax cuts depending on individual taxpayer circumstances.

The benefits from the new tax law will accrue primarily to the wealthiest taxpayers and profitable corporations. In total, the tax plan passed last year reduces revenue by nearly $525 million over the next two years. The foregone investments for our communities that will result from these tax cuts will impact us all.

Consider what could have been done to improve the classroom experience of our students in K-12 public schools if policymakers hadn’t chosen to cut taxes for the wealthy and profitable corporations. These dollars could have been used to provide a package of investments in public education such as:

  • Keeping 1 in 5 teacher assistant jobs in FY15
  • Doubling current funding for textbooks in FY15 Read More
NC Budget and Tax Center

A majority of North Carolinians oppose tax cuts that put at risk the state’s investment in public education, a recent Public Policy Polling (PPP) survey shows. When presented with cutting funding for public schools in order to provide taxpayers a tax cut, 68% of North Carolinians oppose such a move.

The tax plan signed by Governor McCrory earlier this year reduced available revenue by $525 million over the next two years and revenue in future years is reduced even further. Benefits from tax cuts in the tax plan will largely flow to the wealthy and profitable corporations, which represent less than 10 percent of all businesses in North Carolina. Under the tax plan, the wealthiest taxpayers will see their taxes cut on average by more than $9,000, with top 1 percent of income earners getting 65 percent of the total net tax cut.

Opposition to cutting investments in public education to provide such tax cuts extends across ideology and political affiliation. Read More