Latest tax plan provides greatest share of tax cuts to the top 1 percent, grows federal deficit, does little to help middle and low income taxpayers
RALEIGH (November 8, 2017) — As Congress rushes to pass a tax plan crafted by House leadership that’s in line with President Trump’s prior frameworks, new analysis finds that the richest taxpayers will receive a significant share of the net tax cut while many low-income taxpayers would receive no benefit and some would be directly hurt by it.
“Our state has seen this approach before. Cutting taxes for the wealthy and profitable corporations at the state level hasn’t delivered for every day North Carolinians and the economy, and doing so at the federal level won’t either,” said Alexandra Sirota, Director of the Budget & Tax Center, a project of the NC Justice Center. “The latest House tax plan — like others from Congressional leaders and President Trump before it — will hurt North Carolina by paving the way for cuts to key federal programs, affecting our ability to meet our communities’ urgent needs, and further increasing the tax load for 1 in 5 taxpayers.”
The top findings from the analysis include:
- By 2027, the top 1 percent of North Carolina households’ share of tax cut would increase from 30 percent in year one to 43 percent, for an average cut of $55,030 (2.5 percent of their annual income).
- The House Tax Plan would increase the tax load for roughly 1 in 5 North Carolina taxpayers by 2027.
- The House Tax Plan will add $1.5 trillion to the federal deficit over the next decade, squeezing out investments that could boost the economy in the near to long-term.
“These tax cuts that mostly benefit the richest will add to the nation’s annual deficits and come at the expense of our state’s economic health, due to further cuts to education, health care, infrastructure or other public services,” Sirota said.
For more information, contact: Alexandra Sirota, Director, Budget & Tax Center, (919) 861-1468 or Alexandra@ncjustice.org; Luis Toledo, Budget & Tax Center Policy Analyst, (919) 861-1451 or firstname.lastname@example.org.