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You know North Carolina has jumped off the cliff into the abyss when even two conservative figures with close ties to the John Locke Foundation are deriding the latest budget and tax policy choices made by state leaders.

Here, for instance, is longtime Locke Foundation Board member Assad Meymandi in Saturday’s edition of Raleigh’s News & Observer:

“Some 60 years ago, the founding fathers of the new North Carolina – transforming an agrarian society into an educational, technical and industrial state – folks like the late Bill Friday, Archie Davis, Gov. Luther Hodges and others saw the future salvation of our beloved state by heavily investing in education.

Their efforts have produced, among other things, a very strong UNC system of 16 campuses, parallel with the creation of the incomparable network of community colleges. They also advocated a strong N.C. Symphony, N.C. Museum of Art and other cultural and artistic institutions to attract educated and culturally inclined people to the state. Investing in education has paid off. N.C. economy has thrived because of its excellent public universities. UNC-Chapel Hill alone brings in annually around $900 million in research money and grants. It is truly frightening to see what the legislature is doing to the budgets of UNC system, N.C. community college system and UNC-TV. Read More

During yesterday’s tax reform debate on the House floor, we heard a lot about the need to cut personal income taxes so that small businesses can create jobs and the economy can grow.  This is a growing refrain among advocates for tax cuts for the wealthy, so common in fact, that policymakers made it once before—in 2011, when they passed an exemption of business pass through income, an exemption that they are now repealing (apparently the tax cut didn’t work).

As with many of the claims made during the debate about taxes this session, the idea that personal income tax cuts spur job creation is just not borne out by the facts.

Personal income tax cuts for the wealthiest taxpayers do not target actual small business job creators. Only 2.7 percent of personal income taxpayers are owners of small businesses that have employees, according to the U.S. Treasury Department. Moreover, profits from small businesses with paid employees account for less than 4 percent of the total income earned by households with incomes over $100,000 nationally.  There is no evidence that businesses owned by high income taxpayers have more employees than those owned by lower income taxpayers, and as a result, no reason to provide tax cuts that disproportionately benefit those with the highest incomes.  And for many small business owners of any income level, there is often limited interest in growing the size of their business—consider a family restaurant, for example—so again, cutting these business’s won’t lead to job creation.

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On the Senate Tax Plan receiving tentative approval:

The Senate tax plan will give tax cuts to the wealthy and profitable corporations while everyone else pays the price.

The loss of revenue for public education, the health and well-being of seniors and children, and our communities will harm everyday North Carolinians and the economy’s long-term health. Some North Carolinians will even experience income tax increases, including some seniors and families.

North Carolinians want a tax plan that won’t risk the things that have made our state great, especially not on a strategy that has been a proven failure in other states.

On the House Budget passing third reading:

Unfortunately the House is following path similar as the Senate by writing a budget that prioritizes tax cuts that primarily benefit the wealthiest instead of adequately funding our vital public investments. Our children, seniors and everyday families will suffer under this approach, and it will hurt our economy. We need an educated and trained workforce for a 21st century economy, and underfunding our public school system, community colleges, and universities takes us in the wrong direction.