Tax plan regressive
The tax deal reached by House and Senate leaders and the governor will increase taxes for many North Carolinians while giving the wealthiest and profitable corporations a tax cut.
That’s because it adopts a single income tax rate that delivers the biggest tax cut to the wealthiest taxpayers and eliminates many credits and deductions that benefit seniors, families with children and other middle-class and lower-income taxpayers. Among them is the Earned Income Tax Credit, which is widely considered one of the most effective ways to combat poverty and is received by more than 900,000 working taxpayers in North Carolina.
Everyone will pay the price for this tax deal, either by seeing their taxes increase or seeing schools, public safety and other essential services in their communities cut since there will be less money to pay for them. That will only harm our economy, not grow it as supporters of the tax plan say.
North Carolina shouldn’t adopt the same tax-cuts-for-the-rich strategy that other states have tried without success. This plan is a step backward. It certainly isn’t tax reform.
Director, N.C. Budget and Tax Center, Raleigh