2013 Tax Proposal Resources

The Budget & Tax Center has promoted principled tax reform since our founding, and will continue to conduct credible, accessible and timely analysis during this pivotal legislative session. Below you'll find reports, fact sheets, media links, blog posts, and other information related to proposals to eliminate the Earned Income Tax Credit, the personal and corporate income tax, and why maintaining these taxes is so vital to the future of North Carolina.

Click on the images below to see who pays and who loses under the new tax plan.











Click here to see a Guide to the Timing of NC Tax Code Changes based on the 2013 law

This page brings together our research on the tax plan lawmakers passed and various key aspects of the debate. Check out these publications for more information on what North Carolina's economy needs.

These tax proposals will hurt our state by:

1. Failing to create jobs

2. Reducing our ability to make key economic investments or achieve greater economic growth

3. Raising taxes for middle- and low-income North Carolinians


Issue Briefs/Reports

BTC BRIEF: The Math Doesn't Add Up (July 2013)

BTC Brief: Empty Promises - Income Tax Cuts are a Poor Strategy for Boosting the Economy (May 2013)

BTC Brief: Cutting Corporate Income Taxes Won't Be an Economic Boon for North Carolina (April 2013)

BTC Brief: First Comprehensive Tax Legislation Would Not Protect Low- and Middle-Income Taxpayers from Tax Increases (April 2013)

Picking up the Tab 2013: Close Corporate Tax Loopholes (U.S. PIRG, April 2013)

State Personal Income Tax Cuts: A Poor Strategy for Economic Growth (Center on Budget & Policy Priorities, March 2013)

BTC Brief: North Carolina's Earned Income Tax Credit — A modest but vital boost to low-paid workers across the state (March 2013)

ALEC Tax and Budget Proposals Would Slash Public Services and Jeopardize Economic Growth (Center on Budget & Policy Priorities, February 2013)

States with "High Rate" Income Taxes are Still Outperforming No-Tax States (ITEP, February 2013)

Who Pays? A Distributional Analysis of the Tax Systems in all 50 States (ITEP, January 2013)

BTC Reports: A “Laffable” Plan for Tax Reform (January 2013)

BTC Brief: North Carolina’s Business Tax Deduction – Who Benefits? (December 2012)

Myths and Realities About the Estate Tax (Center on Budget & Policy Priorities, November 2012)

BTC Brief: Who Pays Taxes? The Poor, the rich, and everyone in between (October 2012)

BTC Reports: Improving the Sales Tax – A critical step to a modern revenue system (September 2012)

Election 2012 Issue Brief: State Tax Revenue

BTC Brief: North Carolina’s State Earned Income Tax Credit – A support for working families with wide-spread benefits

BTC Reports: The case for North Carolina’s personal income tax (April 2012)

BTC Brief: Supporting Essential Workers – Health, Education and Public-Safety Occupations Benefit from EITC (March 2012)

BTC Brief: Taxes as Job Creators – Research shows investing in public structures creates jobs (October 2011)

BTC Brief: Shutting Down Corporate Tax Shelters – NC should follow the lead of other states by adopting key corporate tax reform (June 2011)

The Future is Now: A Plan to Modernize NC’s Revenue System (April 2011)


Fact Sheets

64,000 North Carolina families set to lose EITC, experience tax increase (July 2013)

Current North Carolina tax and budget proposals could mean cuts for public education (June 2013)

Elimination of the NC Earned Income Tax Credit Shifts Tax Load Further Onto Low-Income Working Families (June 2013)

Senate Bill 677: Corporate Income Tax Cuts Unlikely to Promote Growth (April 2013)

Tax Day 2013: Who should pay for fixing the debt? (April 2013)

Just the Facts: House Bill 101 Aims to Repeal Estate Tax (February 2013)

Why Cutting or Eliminating North Carolina's Personal and Corporate Income Taxes is Bad for Children (January 2013)

Why Cutting or Eliminating North Carolina's Personal and Corporate Income Taxes is Bad for Women (January 2013)

Why Cutting or Eliminating North Carolina's Personal and Corporate Income Taxes is Bad for Older Residents (January 2013)

Seizing the Opportunity: Making Sure North Carolina's Revenue Modernization is Evidence-Based, Adequate, and Fair (November 2012)


Media Links

N.C. Senate Republicans to unveil wide-ranging tax cuts (Triangle Business Journal, May 7, 2013)

Senate provides more tax reform details, but no bill (WRAL, May 7, 2013)

Senate Republicans offer more on NC tax overhaul (Charlotte Observer, May 7, 2013)

Art Pope groups push extreme ALEC tax agenda in North Carolina (Truthout, April 30, 2013)

State tax reports are lengthy, but lacking detail (Raleigh News & Observer, April 27, 2013)

Study: Cutting state's corporate tax could hurt investments (Winston-Salem Journal, April 19, 2013)

Corporate tax breaks rolled out in NC Senate committee (Raleigh News & Observer, April 9, 2013)

Prospect of broader NC sales tax raises concerns (WRAL, April 5, 2013)

Plan would apply NC sales tax to services (Asheville Citizen-Times, March 23, 2013)

McCrory signs bill eliminating tax credit (Triangle Business Journal, March 13, 2013)

What the changing tax system could mean for you (CoastLine, March 8, 2013)

NC lawmakers urged to expand Earned Income Tax Credit (WRAL, February 28, 2013)

NC lawmakers join growing push to eliminate state income tax (Fox News, February 26, 2013)

Earned Income Tax Credit modest but vital for low-paid workers in North Carolina (High County Press, February 19, 2013)

State Sen. Bob Rucho says NC tax system needs an overhaul (Charlotte Observer, February 2, 2013)

UNC-system funds could drop after tax reforms (The Daily Tar Heel, January 28, 2013)

Alexandra Sirota, director of the Budget & Tax Center, on tax reform (News 14, January 28, 2013)

NC looks at eliminating income taxes (WBTV, January 25, 2013)

McCrory still open to dumping state income tax (WRAL, January 24, 2013)

Pope pans idea to scrap NC income tax (WRAL, January 23, 2013)

State GOP leaders’ tax plan would benefit wealthy (Smoky Mountain News, January 23, 2013)

NC budget chief: Problems with tax overhaul idea (Raleigh News & Observer, January 23, 2013)

Thom Tillis urges careful approach on taxes (Charlotte Business Journal, January 23, 2013)

N.C. Senate leader Phil Berger hints at end to state income tax (Fayetteville Observer, January 17, 2013)

Higher taxes on food, services could replace NC income tax (WRAL, January 17, 2013)

GOP leader: N.C. Senate mulling axing income tax (Hampton Roads Virginian-Pilot, January 16, 2013)

NC mulls taxing the poor to pay for tax cuts for the rich (Think Progress, January 14, 2013)

GOP wins escalate NC tax reform debate (WRAL, November 9, 2012)

Dalton, McCrory split on how to handle state taxes (Rocky Mount Telegram, October 10, 2012)

Report: NC sales tax needs overhaul (Public News Service, September 28, 2012)

Group urges reforms of sales tax (WUNC, September 28, 2012)


Op-Eds/Letters to the Editor

Not a serious attempt at reform (Greenville Daily Reflector, May 2013)

A tax credit worth keeping (Raleigh News & Observer, March 2013)

Estate tax is fair, not burdensome (Raleigh News & Observer, March 2013)

The rigged debate on tax reform (Jefferson Post, January 2013)

Sales Tax (Charlotte Observer, January 2013)

Will reform unfairly target the vulnerable? (Charlotte Observer, January 2013)

A tax-reform plan that rewards the wealthy and stalls the state (Raleigh News & Observer, January 2013)

Richard Hester: A poor proposal (Raleigh News & Observer, January 2013)

Elliot Galdy: It’s not fiction (Raleigh News & Observer, January 2013)

Don’t dump the income tax (Raleigh News & Observer, January 2013)

Susan Mazzara: Trampling the poor (Raleigh News & Observer, January 2013)

Beware the great tax swap in North Carolina (Raleigh News & Observer, December 2012)

Rich get richer, poor get poorer in N.C. (Charlotte Observer, November 2012)

Mooneyham: Reworking tax code (Greenville Daily Reflector, November 2012)

End of NC income tax won’t benefit economy (Charlotte/Triangle Business Journal, October 2012)

Poverty, joblessness high – do tax reform (Charlotte Observer, September 2012)

Tax reform talk with an ominous tone (Winston-Salem Journal, September 2, 2012)


Blog Posts/Press Releases

The greatest tax shift in North Carolina history (Progressive Pulse, May 2013)

House committee OKs failed idea that would dismantle North Carolina's key investments (Progressive Pulse, May 2013)

Georgia's failed tax reform efforts holds a warning for North Carolina (Progressive Pulse, May 2013)

Elminating estate tax provides tax cut to North Carolina's wealthiest individuals (Progressive Pulse, May 2013)

Another key justification for tax cuts bites the dust - NC economy is already competitive with neighboring states (Progressive Pulse, May 2013)

Earned Income Tax Credit is worth saving according to the Tax Foundation (Progressive Pulse, May 2013)

How do you like your taxes? Progressive or regressive? (Progressive Pulse, May 2013)

Memo: "Tax Freedom Day" Concept is Flawed, Ignores the Value of Shared Public Investments (April 2013)

Tax cuts a poor strategy for growth (Progressive Pulse, March 2013)

Repealing Estate Tax benefits few, harms many (Progressive Pulse, March 2013)

The First Fault lines in the Great Tax Shift (Progressive Pulse, March 2013)

Happy Belated Birthday, Personal Income Tax (Progressive Pulse, March 2013)

The Earned Income Tax Credit benefits low-income working families across NC (Prosperity Watch, March 2013)

States with personal income taxes still outperforming states without such a tax (Progressive Pulse, March 2013)

Public statement before the House Finance Commitee, effort to repeal Estate Tax (Progressive Pulse, February 2013)

Statement from the BTC: Repeal of Estate Tax is wrong for NC's economy and people (February 2013)

Working families hit again (Progressive Pulse, February 2013)

Legislators poised to eliminate NC EITC despite its powerful anti-poverty impact (Progressive Pulse, February 2013)

Don't be misled: Boosting sales tax would hurt low- and middle-income families (Progressive Pulse, February 2013)

Report highlights that taxes and spending are not out of line in NC (Progressive Pulse, February 2013)

Financial Stability for the State of NC (United Way of the Greater Triangle, February 2013)

Proposals to abolish corporate, personal income tax would eliminate 60% of North Carolina’s revenue base (Prosperity Watch, January 2013)

Civitas tax proposal and senior citizens (Applied Rationality, January 2013)

Raising equity concerns, tax shift would have outsized impact on lower-income North Carolinians (Prosperity Watch, January 2013)

Economist says Civitas/Laffer/Senate tax plan targets seniors’ “purses and wallets” (Progressive Pulse, January 2013)

Budget & Tax Center statement on the Senate’s tax agenda for 2013 (Progressive Pulse, January 2013)

Who Pays Taxes in North Carolina (Progressive Pulse, January 2013)

Why ending the corporate income tax won’t create jobs (Progressive Pulse, January 2013)

Media Release: Tax plan embraced by Senate shifts load to middle-class, poor North Carolinians (January 2013)

NC EITC needed now more than ever (Progressive Pulse, January 2013)

Busting Tax Myths: Personal income tax no more volatile than other major state taxes (Progressive Pulse, January 2013)

Diverse revenue streams better position NC to achieve principles of sound revenue system (Progressive Pulse, January 2013)

#NCTaxReform Blog Series: Seizing the opportunity (Progressive Pulse, January 2013)

Tax Reform, all that glitters is not gold (Progressive Pulse, January 2013)                       

Flawed methods shouldn’t guide public policy (Progressive Pulse, January 2013)

Media Release: Wealthiest North Carolinians pay two-thirds the effective tax rate that poorest pay in state and local taxes (January 2013)

12 for 2012: Key economic and policy trends from 2012 that will define 2013 (Prosperity Watch, December 2012)

State revenues can fuel North Carolina’s resurgence (Policy & Progress, August 2012)



False choices in Senate and House tax plans (July 2013)

EITC in North Carolina: A Tool to Help Working Families and Communities Statewide (NC Policy Watch, March 2013)

Somewhere, over the rainbow, tax reform is failing (Progressive Pulse, February 2013)

Infographic: Skin in the Game – Everyone Pays Taxes (September 2012)