MEDIA ADVISORY: Telepresser responds to Senate Finance hearing with the truth about taxes and economic growth

Experts weigh in on today's Senate Finance hearing and present new research showing that tax cuts are bad strategy for boosting economy

WHAT: Telepresser responding to Senate Finance hearing with the truth about taxes and economic growth. Experts will be available for comment and to discuss new research showing tax cuts are a poor strategy for boosting the economy.

WHEN/WHERE: Tuesday, June 11, 2:30 p.m. via conference call at

  • From outside the Triangle: dial 1-800-973-0487. Locally: dial 856-2158.
  • Code: 4500

WHO: Dr. Michael Leachman, nationally known expert on tax policy and Director of State Fiscal Research at the Center on Budget and Policy Priorities in Washington, DC; Alexandra Sirota, Director of the Budget & Tax Center, a project of the NC Justice Center; and Allan Freyer, Policy Analyst with the Budget & Tax Center.

RALEIGH (June 11, 2013) — During today’s Senate Finance Committee hearing, we’ll hear a lot of inaccurate claims about the role of taxes in generating economic growth. This afternoon's telepresser will set the record straight by providing significant evidence from around the country that tax cuts have historically never lived up to expectations.

During the call, the speakers will address two new reports released by the Budget & Tax Center. The first report, Empty Promises: Income Tax Cuts A Poor Strategy for Boosting the Economy, lays out the poor track record of income tax cuts. Specifically:

  • Over the last 65 years, changes in tax rates have had virtually no impact on economic growth, and the cut in the top tax rates in 2001 and 2003 failed to generate more savings, investment or productivity.
  • The 9 states with the nation’s highest income tax rates – including California, Ohio, and Maryland — have experienced better economic performance than the 9 states with the lowest income tax rates, including Texas, Tennessee, and Florida.

The second report, A Pathway to Poverty: 3 Reasons Why Tennessee is a Bad Role Model for North Carolina's Economic Future, refutes that argument that Tennessee’s no income tax approach is a good role model for North Carolina, and instead shows that the Volunteer State has the wrong kind of economy to emulate. Tennessee models a pathway to poverty, not a pathway to prosperity. Specifically:

  • Tennessee’s economy is not performing as competitively as advertised, either in job creation or economic growth. It has the worst job creation of any neighboring state over the last decade.
  • The jobs created in Tennessee are almost entirely in low-skill, low-wage industries that have kept poverty higher and household incomes lower than in North Carolina.

FOR MORE INFORMATION, CONTACT: Alexandra Forter Sirota, alexandra@ncjustice.org, 919.861.1468; Jeff Shaw, Director of Communications, jeff@ncjustice.org, 503.551.3615 (cell).
 

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