By focusing on people’s well-being now in several critical areas — boosting income, supporting access to health care, and committing to investments in public institutions — it demonstrates the potential of state dollars to support a more equitable recovery.
And it makes clear that current state dollars alone won’t get us to the North Carolina we could be. Federal dollars available from the American Rescue Plan are urgently needed to meet the scale of hardship and priority investments — but so is a long-term plan for our state to align our tax code to support the common good.
By passing on popular options to raise the tax rates paid by high-income taxpayers and profitable corporations, it misses a critical moment for getting NC on a sustainable path to more equitable outcomes. After a devastating year on top of a devastating decade, the harm to people, businesses, and communities of starving our public institutions of the resources they need to respond, innovate, and deliver is clear.
What the Governor’s budget does do on tax cuts is an important contrast to the proposals that have been introduced just this week by legislative leaders that would advance tax cuts for big companies and poorly targeted income tax cuts. The Governor’s budget would provide tax breaks for people who are struggling with income that isn’t keeping up with the cost of living, recognizing that the well-being of working families earning low wages can fuel a stronger recovery.
Governor Cooper proposed a series of bottom-up tax cuts for working families that will effectively drive support to those most hurt by the pandemic, who are currently being bypassed in a recovery that has already reached very high-income North Carolinians.
A state Earned Income Tax Credit will reach more than 850,000 families, primarily with children, and boost the value of the federal credit to ensure that the earned income in households is available to meet basic needs and support children’s healthy development. Read more