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Thanks in large part to the rebound in the personal income tax, North Carolina is finally experiencing a slight uptick in revenues as the tepid economy slowly improves. Yet, at the first sign of revenues recovering, state lawmakers are pursuing tax policies that will pull back investments prematurely. North Carolina is already in a hole, and the tax plans being debated would make it very difficult for the state to dig itself out, make progress on unmet needs, and move forward.

These tax plans cut taxes for the wealthy and profitable businesses at the expense of everyone else. Proponents claim that these deep and lopsided cuts will create jobs and benefit everyone, but research simply does not support this conclusion. Read More

If the Senate tax plan moves forward, it is very likely that many low- and middle-income taxpayers will see their tax loads increase .

The Senate plan, in addition to the House Plan, do not include the Earned Income Tax Credit, the best tool for ensuring that working low- and middle-income taxpayers are not carrying a heavier tax load than their wealthy neighbors. This decision by Senate and House leadership to end the Earned Income Tax Credit will impact more than 907,000 North Carolinians.

When you look at the Senate plan combined with the end of the state Earned Income Tax Credit and keep in place the local tax on groceries, it’s clear that low-income working families would pay more, while the rich pay less.BTC_Tax Shift Continues_Senate Tax Plan Read More

It looks like Governor McCrory’s role in the big tax cut debate between House and Senate leaders might be merely to market what the legislative leaders come up with.

Here’s what House Speaker Thom Tillis told the News & Observer about McCrory’s role in the discussion about a tax deal.

We need the governor fully on board so he can communicate it and get people to understand it.

That’s a bit of an odd take from Tillis. He didn’t say they need to work with the governor because he is running the state or because he is the top elected official of their own political party or heaven forbid, because he might have some policy ideas and strongly held views of his own about taxes.

No, they need the governor on board only to sell the package that Berger and Tillis decide on. It is pretty clear legislative leaders believe they are in charge in Raleigh these days. McCrory? He is their PR guy.

In any public policy debate, fact-based analysis is critical. As North Carolina continues to discuss a major overhaul to the state’s tax code, there are numerous analyses that allow lawmakers and the public to see how the Senate tax plan will impact taxpayers and the state.

Here are a few of the best resources and analysis:

In the face of such evidence, lawmakers should scrap the current tax plans and instead look for a way to reform the tax code without hurting middle-class and low-income families and local communities.

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.