Commentary

Graph documents amazing scale of U.S. Senate’s proposed giveaway to the rich

New from the experts at the N.C. Budget and Tax Center:

Upcoming Senate budget resolution vote paves way for windfall for wealthiest, destabilization of NC budget

This week, the U.S. Senate will vote on a budget resolution that will allow them to fast track tax changes that are likely to primarily benefit the wealthiest taxpayers and profitable corporations.

The tax plan framework released by President Trump and leaders in Congress will not provide an equal tax cut to all taxpayers in North Carolina. Recent analysis by the Institute on Taxation and Economic Policy found that 57.6 percent of the tax cut would go to the richest 1 percent of taxpayers in North Carolina. These taxpayers would receive an average annual tax cut of $50,440 a year. This is roughly equivalent to the annual income of the median household in North Carolina as of 2016.

In contrast, both the middle income group and the poorest in our state would receive a smaller share of the tax cut compared to the wealthiest. The poorest in our state, those with an average annual income of about $13,000, would only receive 1.7 percent of the tax cut, which would be equivalent to $80. Meanwhile, the middle income group, with an average income of $45,000, would receive 12.2 percent of the tax cut, which would be equivalent to $550.

Due to the loss of revenue from these lopsided tax cuts, the Senate is likely to follow the House’s budget resolution, which proposes $5 trillion over 10 years in cuts to health care, food assistance and other public services. State policymakers will have to decide whether or how to deliver these services with limited options given the additional tax cuts already scheduled to take effect at the state level on Jan. 1, 2019.

Check Also

Dallas Woodhouse impeachment threat is an outrage that GOP leaders must disavow

North Carolina took another worrisome step into dangerous ...

Top Stories from NCPW

  • News
  • Commentary

The emails began going out at the University of North Carolina earlier this summer. Warnings that fe [...]

Litigation over the November election ballot is not likely to end anytime soon, but absentee by-mail [...]

For the first 50-odd years of his life Rusty Goins was healthy and hale, a strapping man who never s [...]

Wake County judge rejects legislature's last-minute rule change on candidate party affiliation [...]

North Carolina made history again Monday, the not-so-bad kind. If you were in earshot of Raleigh Mon [...]

A summer of hectic twists and turns has made it increasingly clear: The North Carolina General Assem [...]

The highest profile public policy debate in North Carolina in the summer of 2018 revolves around the [...]

The post Ship of State in a bottle… appeared first on NC Policy Watch. [...]