Fair Budget and Tax Policy

Every year, Justice Center advocates work closely with policymakers to help craft a state budget that will provide adequate funding for the programs and services that enable working families to prosper. Our researchers in the NC Budget & Tax Center do extensive analysis of budget allocations and tax proposals, and they develop policy alternatives that better serve low- and moderate-income people.

The Justice Center is also committed to helping North Carolina create a fairer, more adequate tax system. Such a system would require the wealthy and corporations to live up to their responsibilities to the state, while making sure that taxes are not a barrier for middle- and low-income families working to move up the economic ladder. It would also provide the state with a reliable flow of revenue that will cover the costs of both today’s needs and essential investments for the future.

Recent Victories

North Carolina’s 2007-09 budget, including modifications made in 2008, makes important investments for the state’s health, children, and future. You can read more about the numerous programs for which the Justice Center helped secure funding on the Issue pages of this site or in our 2008 Legislative Wrap-up. 

Our victories related specifically to how the tax system works include:

• Tax Reduction for Working Families – The refundable state Earned Income Tax Credit, created in 2007, will increase from 3.5% to 5% for the 2009 tax year. More than 845,000 working families benefit from this credit.
• Decoupling from “Bonus Depreciation” – The Federal Stimulus Act of 2008 allows businesses to reduce their taxes by writing off up to 50% of the value of newly purchased equipment. North Carolina decoupled its tax rules from this federal change, preventing an estimated $282 million revenue loss from the corporate income tax.
• More Frequent Property Revaluations – This will make the property tax fairer for all homeowners because it will reduce the discrepancy between the property-tax value and the real market value of properties.

Justice Center staff members specializing in Budget and Tax Policy issues: