The final budget agreement from leaders of the House and Senate puts North Carolina on precarious fiscal footing, The tax changes that leaders agreed to—which were less a compromise and more of a decision to combine the tax cuts in both chambers’ proposals—make the cost of these tax cuts bigger than what either chamber proposed. Including the new tax cuts,approximately 80 percent of the net tax cut since 2013 will have gone to the top 20 percent. More than half of the net tax cut will go to the top 1 percent.
ITEP Work in Action
Advocates and policymakers at the state and federal levels rely on ITEP’s analytic capabilities to inform their debates on proposed tax policy changes. In any given year, ITEP fields requests for analyses of policies in 25 or more states. ITEP also works with national partners to provide analyses of federal tax policy proposals. This section highlights reports that use ITEP analyses to make a compelling case for progressive tax reforms.
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ITEP Work in Action June 21, 2017 Failed Tax-Cut Experiment (in North Carolina) Will Continue Under Final Budget Agreement, Pushes Fiscal Reckoning Down the Line
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ITEP Work in Action May 26, 2017 The Cost Of Trickle-Down Economics For North Carolina
Since 2013, state lawmakers have passed significant income tax cuts that largely benefit the state’s highest income earners and profitable corporations. These costly tax cuts have made the state’s tax… -
ITEP Work in Action May 3, 2017 The Progressive Pulse: Young Undocumented Immigrants’ Tax Contributions Would Drop by Nearly Half Without the Protection of the DACA Program
Young immigrants eligible for DACA (Deferred Action for Childhood Arrivals) annually contribute $2 billion in state and local taxes, according to new analysis from the Institute on Taxation and Economic Policy. The ITEP report finds that this number would drop by nearly half without DACA protection at a time when the Trump Administration has sent mixed signals on whether it intends to honor the DACA executive order in the long term.
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ITEP Work in Action April 18, 2017 North Carolina Justice Center: Prosperity Watch (Issue 72, No 3): Tax cuts since 2013 reinforce racial and ethnic exclusion
Changes to North Carolina’s tax system in recent years have had an impact on the level of available revenue for public investments and shifted tax responsibility among taxpayers. BTC analysis… -
ITEP Work in Action April 12, 2017 The Progressive Pulse: Undocumented immigrants pay their fair share of taxes, too
Tax Day is just around the corner, and this year is no different than any other for countless undocumented immigrants filling tax forms in North Carolina. Current rhetoric on immigration… -
ITEP Work in Action April 3, 2017 NC Policy Watch: What you need to know as the state Senate moves to cut taxes yet again
The North Carolina Senate is moving ahead yet again – perhaps as early as this afternoon – with a new proposal to further reduce state taxes and the revenues they… -
ITEP Work in Action April 3, 2017 The Progressive Pulse: New analysis: Most of NC senate’s “middle class” tax cut would actually flow to the wealthy
BTC’s analysis of SB 325 uses a more robust model developed by the Institute on Taxation and Economic Policy (ITEP), a non-profit, non-partisan organization. ITEP’s microsimulation tax model calculates tax… -
ITEP Work in Action March 31, 2017 The Progressive Pulse: Why cutting taxes for business again makes no sense
When businesses pay their share of taxes, North Carolina is able to invest in the things that build thriving communities and a prosperous economy – things like good schools, roads,… -
ITEP Work in Action March 19, 2017 North Carolina Justice Center: BTC POLICY BASIC: Marginal versus Effective Personal Income Tax Rates
A great deal of confusion abounds in discussions about state personal income tax rates and how they apply to income. This policy basic clarifies the difference between marginal and effective… -
ITEP Work in Action March 19, 2017 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
Senate 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.… -
ITEP Work in Action January 6, 2017 North Carolina Justice Center: 12 Charts about N.C.’s Economy in 2016
“The economic challenges that face North Carolina families were front and center in 2016. North Carolina wrestled with the disconnect between political rhetoric and everyday reality this election year, thanks… -
ITEP Work in Action April 11, 2016 North Carolina Budget and Tax Center: North Carolina’s “Tax Swap” Gives Biggest Breaks to the Wealthiest, Undermines Public Investments for All
“Efforts to rely more on the state sales tax and less on the income tax to support public services have shifted tax obligations to less affluent North Carolinians, while saving… -
ITEP Work in Action February 17, 2016 North Carolina Tax and Justice Center: Prosperity Watch Issue 58, No. 3: State EITC allows working North Carolinians keep more of what they earn, boosts economy
Low- and middle-income taxpayers in North Carolina pay a larger share of their income in state and local taxes than the wealthiest taxpayers in the state. This inequity in… -
ITEP Work in Action October 21, 2015 North Carolina Tax and Budget Center: BTC REPORTS: Doubling Down on a Losing Strategy – More Income Tax Cuts Will Grow Budget Shortfalls, Not the Economy
North Carolina policymakers have proposed another round of income tax cuts on top of those they passed in 2013. Senate Bill 526 would cost at least $1.4 billion by 2017,… -
ITEP Work in Action October 21, 2015 North Carolina Budget and Tax Center: FACTSHEET: Keep Arbitrary Tax & Spending Limits Out of North Carolina – Vote No on Senate Bill 607
A suite of severe changes to the state constitution laid out in Senate Bill 607 would undermine the foundations of the North Carolina economy and make our current challenges much… -
ITEP Work in Action October 21, 2015 North Carolina Budget and Tax Center: BTC REPORTS: Diminished Expectations and the Resulting Drag on NC’s Economy – A Summary of the 2015-17 Budget
The budget North Carolina will live under through June of 2017 will sharply constrain the state’s ability to make public investments crucial to promoting widespread prosperity and a growing economy.… -
ITEP Work in Action June 16, 2015 NC Policy Watch: The Senate Tax Plan Fails to Fix the Problem
Last week, we raised concerns with the Senate leadership’s new tax plan. Rather than reinvesting and regaining ground lost in recent years, the Senate is pursuing another round of costly income… -
ITEP Work in Action April 14, 2015 Budget and Tax Center: Tax Credits for Working Families Deliver Broad Benefits to the State
The North Carolina EITC was a vital facet of the state’s tax system, building off of the federal tax credit—one of the nation’s most powerful anti-poverty tools for children. The… -
ITEP Work in Action January 24, 2015 North Carolina Justice Center: A Capital Loss – Eliminating taxes on capital gains would make North Carolina’s tax system more unfair
Tax cut proponents in North Carolina are pushing another plan that would benefit the wealthy at the expense of everyone else, turning their sights to eliminating the state income tax… -
ITEP Work in Action January 21, 2015 North Carolina Justice Center: Low-income taxpayers in North Carolina pay nearly twice the tax rate paid by the richest North Carolinians
The lowest income North Carolinians pay over 70 percent more in taxes as a percent of their income compared to the state’s wealthiest residents, according to a new study released… -
ITEP Work in Action January 16, 2015 NC Policy Watch: North Carolina’s unfair tax system highlighted in new report
The latest Who Pays? report released today by the Institute on Taxation and Economic Policy (ITEP) takes a look at the fairness of state tax systems. For North Carolina, the… -
ITEP Work in Action December 11, 2014 North Carolina Budget and Tax Center: 2015 Budget Undermines North Carolina’s Competitiveness
The 2015 state budget, passed by the NC General Assembly and signed by Governor McCrory, undermines North Carolina’s competitive position in the 21st century global economy. Lawmakers failed to provide… -
ITEP Work in Action December 11, 2014 North Carolina Budget and Tax Center: 2015 Budget Undermines North Carolina’s Competitiveness
The 2015 state budget, passed by the NC General Assembly and signed by Governor McCrory, undermines North Carolina’s competitive position in the 21st century global economy. Lawmakers failed to provide… -
ITEP Work in Action September 8, 2014 North Carolina Justice Center: Stronger Earned Income Tax Credit and Minimum Wage – Both Needed to Help Low-Wage Working Families
There are two critical policy tools that can help put low-wage workers on the path to economic security: the minimum wage and the Earned Income Tax Credit (EITC). Together these… -
ITEP Work in Action May 22, 2014 North Carolina Justice Center: First in Flight from the EITC – Low-Income Working Families Bid Farewell to NC’s Earned Income Tax Credit
Unless lawmakers reverse course, close to one million working families in North Carolina will claim the state Earned Income Tax Credit (EITC) for the last time this tax season, bringing… -
ITEP Work in Action May 22, 2014 NC Policy Watch: North Carolina can make tax system more fair by reinstating its state Earned Income Tax Credit
It comes as no surprise to working families that North Carolina’s tax system is fundamentally unfair. Families who make less than $47,000 a year pay, on average, nearly 2 times… -
ITEP Work in Action May 9, 2014 North Carolina Justice Center: Raising the Bar in the Budget Debate
The Legislature’s upcoming budget debate is an opportunity to change the state’s direction and ensure a stronger recovery from the Great Recession. To do so, policymakers must make the critical… -
ITEP Work in Action April 14, 2014 North Carolina Justice Center: Who Pays in 2014 – Tax Plan Creates Winners and Losers in North Carolina
Changes are coming to who pays taxes in North Carolina, and the news is not good for middle- and low-income taxpayers. This tax season marks the final year taxpayers will… -
ITEP Work in Action March 21, 2014 NC Policy Watch: Profitable corporations avoid paying fair share of taxes
As our state leaders continue to look for ways to give more and more tax cuts to profitable corporations, these corporations continue to find ways to avoid paying their fair… -
ITEP Work in Action March 20, 2014 North Carolina Justice Center: Tax change for multistate corporations would harm state investments
State lawmakers are considering a change that would provide a tax cut to a handful of corporations and no guarantee of job creation, says a report released this morning by… -
ITEP Work in Action February 27, 2014 North Carolina Justice Center: Duke Energy the subject of another scathing report
One of North Carolina’s largest, most profitable (and most controversial) corporations is the subject of renewed criticism today. A new report co-released last night by the Washington, DC-based groups Citizens… -
ITEP Work in Action February 26, 2014 North Carolina Justice Center: Many of America’s Most Profitable Corporations Pay Little or No Federal Income Taxes; Headquartered Companies in N.C. Top the List
Washington, D.C. (February 26, 2014) – A comprehensive five-year study of 288 highly profitable Fortune 500 companies finds that 111 of them paid no federal corporate income tax in at… -
ITEP Work in Action September 11, 2013 North Carolina Justice Center: Final Tax Plan Falls Far Short of True Tax Reform
The tax plan recently signed into law by Governor Pat McCrory fails to make the fundamental changes North Carolina needs to create a modern, adequate and fair revenue system that… -
ITEP Work in Action July 15, 2013 North Carolina Justice Center: The Math Doesn’t Add Up
The latest Senate tax plan continues to provide large tax cuts to the wealthiest taxpayers and profitable corporations, while shifting more of the overall tax load to middle-class families and… -
ITEP Work in Action June 21, 2013 North Carolina Justice Center: No Protection for Working Families
Both the Senate and House tax plans would give huge tax cuts to the wealthy and profitable businesses while failing to address the state’s flawed tax system, which requires low-… -
ITEP Work in Action June 14, 2013 North Carolina Budget & Tax Center: First Comprehensive Tax Legislation Would Not Protect Low- and Middle-Income Taxpayers from Tax Increases
80 percent of taxpayers would see slightly higher taxes under the first comprehensive tax legislation introduced this legislative session, while the top 1 percent of earners would get a tax… -
ITEP Work in Action June 14, 2013 North Carolina Budget & Tax Center: State EITC is the best tool to reduce an increased tax load on low-income taxpayers
The State Earned Income Tax Credit is the best way to make sure that low-income North Carolinians are not paying more than their fair share of taxes, while also helping… -
ITEP Work in Action June 14, 2013 North Carolina Budget & Tax Center: A Pathway to Poverty – 3 Reasons Why Tennessee is a Bad Role Model for North Carolina’s Economic Future
In the current debate over tax reform, legislative leaders frequently hold up Tennessee as a role model for improving North Carolina’s economic competitiveness and ensuring future prosperity. But a look… -
ITEP Work in Action June 14, 2013 North Carolina Budget & Tax Center: Key Concerns with House Bill 998
House Bill 998 proposes to cut tax rates with the goal of shifting to a consumption-based tax system. The legislation will result in a tax shift away from wealthy taxpayers… -
ITEP Work in Action June 14, 2013 North Carolina Budget & Tax Center: North Carolina’s Tax Shift Saga Continues
North Carolina’s House leadership has thrown its hat into the tax shift ring with a plan that would increase the tax load on middle- and low income tax-payers while providing… -
ITEP Work in Action June 14, 2013 North Carolina Budget & Tax Center: Analyzing the Impact of Tax Changes – Economic Incidence Analysis a more accurate measure of how taxpayers will fare
Policymakers need accurate information in order to make informed policy choices. And the general public, too, should know what is at stake when their elected officials propose tax changes. That… -
ITEP Work in Action June 14, 2013 North Carolina Budget & Tax Center: HB 998 is a tax shift: Millionaires will benefit while low-and middle income will pay
RALEIGH (June 7, 2013) — The House today gave tentative approval to a tax plan that will shift the tax load to low- and middle-income taxpayers, give the wealthiest taxpayers… -
ITEP Work in Action June 14, 2013 North Carolina Budget & Tax Center: House’s Flat Income Tax a Windfall for the Wealthy
The tax plan under consideration by the North Carolina House of Representatives would create a single income tax rate – known as a flat tax – that will shift taxes… -
ITEP Work in Action June 14, 2013 North Carolina Budget & Tax Center: Gambling Away Our Future
New Senate Tax Plan risks North Carolina’s long-term growth to give tax cuts to the wealthy and profitable corporations THIS WEEK THE SENATE INTRODUCED ANOTHER TAX PROPOSAL. The new proposal,… -
ITEP Work in Action April 12, 2013 North Carolina Justice Center: Profiles in corporate tax avoidance- Duke Energy
Duke Energy at a glance Largest electric power holding company in the U.S.; serves vast majority of NC electric consumers Assets: $114 billion 2012 Profits: $1.792 billion Net 2012 tax… -
ITEP Work in Action April 12, 2013 North Carolina Justice Center: Profiles in corporate tax avoidance- Merck
Merck & Co. at a glance One of the largest pharmaceutical companies in the world; key player in global vaccine production and distribution. 2012 Sales: $14 billion 2012 Assets: Total… -
ITEP Work in Action April 3, 2013 North Carolina Justice Center: First Comprehensive Tax Legislation Would Not Protect Low- and Middle-Income Taxpayers from Tax Increases
80 percent of taxpayers would see slightly higher taxes under the first comprehensive tax legislation introduced this legislative session, while the top 1 percent of earners would get a tax… -
ITEP Work in Action March 27, 2013 North Carolina Jusice Center: North Carolina’s Business Tax Deduction – Who Benefits?
In the 2011 budget, the North Carolina General Assembly created a deduction for the first $50,000 in non-passive income for businesses filing through the personal income tax. Proponents of the… -
ITEP Work in Action January 23, 2013 North Carolina Justice Center: A “Laffable” Plan for Tax Reform
EXECUTIVE SUMMARY This tax plan, if implemented, will provide the wealthiest 20 percent of taxpayers a significant tax cut, which would be paid for by increasing taxes on 60 percent… -
ITEP Work in Action January 14, 2013 North Carolina Budget and Tax Center: Budget and Tax Center Releases Alternative Revenue Plan
Read the Original Full Power Point Presentation