- The Progressive Pulse - https://pulse.ncpolicywatch.org -

Senate tax plan would continue down a path to nowhere

A tax plan state Senate leaders presented this week [1] would promote neither shared economic opportunity nor prosperity across North Carolina. Far from it.

The proposal would cost more than $1 billion in annual revenue loss as the tax plan continues down the path of handing out more costly tax cuts to large, profitable corporations at the expense of everyday North Carolinians. This approach won’t restore the state’s economy to a sound footing.

The proposed tax plan does nothing about persistent stagnant wages, an uneven economic recovery in which all gains are going to the wealthiest North Carolinians, and the lack of economic and job growth in many parts of the state. Senate leaders would pay for only a portion of the income tax cuts by having North Carolinians pay more in sales taxes, which hit people making relatively low incomes the hardest. And the state would continue to walk away from its responsibility to make much-needed investments in our public schools, public colleges and universities, repair the state’s eroding infrastructure, and other building blocks of a strong economy.

Key aspects of the Senate tax plan stand out as strong reasons why its adoption would fail to promote broad prosperity.

Building a strong, prosperous economy should be North Carolina’s top priority – and these tax-cut proposals won’t do it. The continued commitment to tax cuts and subsidies for large, profitable businesses at the expense of investing in great schools and helping hardworking North Carolinians support their families takes the state down the wrong path. Staying on that path means North Carolina will continue to cede ground gained from a long and deep commitment to ensuring that economic opportunity is possible for all.