IN FOCUS: The Senate Tax Plan
This week the Senate introduced another tax proposal. The new proposal, like all the others, is about massive tax cuts for the wealthy and profitable corporations, not tax reform. The Senate plan would cost more than $1 billion in annual revenue upon full implementation. This means more cuts to core public investments such as education, public safety, and other services that children, seniors, families, businesses, and our economy need.
Click here to read the complete BTC Report.
Click here for a factsheet on key concerns with House Bill 998.
NEW RESOURCE: 2013 Tax Plans
The tax cuts for big, profitable corporations and the wealthy is the wrong choice for North Carolina. These irresponsible tax changes will not boost our economy or create more jobs, but they will result in middle- and low-income families paying more taxes and damaging cuts to important public services that both businesses and average North Carolinians rely on, including our public schools and universities which build a skilled workforce and encourage innovation. This page brings together our research on the tax proposals that lawmakers are debating.
ABOUT OUR STATE REVENUE WORK
North Carolina’s revenue system funds investments in the public structures—schools, courts, hospitals, colleges, universities, and infrastructure—that are critical to building and preserving a strong middle class and a 21st century economy. It is not just important that North Carolina have adequate resources to make these investments but how that revenue is raised is important too. The Budget and Tax Center produces research on state and federal tax policies with a focus on how they support economic opportunity and shared prosperity in North Carolina’s communities.
As revenue modernization once again becomes a major topic of debate in North Carolina, it is critical that proposals and ideas are measured against the following principles:
- Equity – How much a family or business contributes in taxes should be based on its ability to pay. The wealthiest should contribute a greater share of their incomes in taxes than those who are low- or middle-income.
- Adequacy – The revenue system should be able to keep up with the needs of the state. Population growth and changes in demographics often cause increased economic activity and greater demand for public services and better infrastructure. The revenue system should grow with the economy so state government can meet those needs.
- Stability – The revenue system should not overreact to changes in the economy and policies, like strong Rainy Day Funds, should be in place to smooth the availability of revenue in difficult times.