North Carolina Justice Center: Still walking the path to zero: The Senate tax plan will harm North Carolina’s goal of building a stronger, inclusive economy
ITEP Work in ActionSenate leaders continue to pursue reductions to the income tax rate for wealthy taxpayers and profitable corporations even as they claim to be focused on helping low- and moderate-income taxpayers. This year they will do so without proposing immediate replacement of the revenue with sales-tax base expansions. The result is a loss of nearly $1 billion in revenue, meaning that the state’s tax code in the next fiscal year will bring in $3.2 billion less than it would have under the tax code pre-2013 changes. That’s more than the state currently pays for the North Carolina Community College system and the early childhood system statewide combined, and in a state that has seen its population grow by more than the entire city of Raleigh since that time.