North Carolina Justice Center: Final Tax Plan Falls Far Short of True Tax Reform
ITEP Work in ActionThe 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 can boost the state’s economy and strengthen schools, health care and other services families need to prosper and the economy needs to grow. The plan consists largely of cutting tax rates for personal and corporate income, in a way that will overwhelmingly benefit the wealthy, and does little to rid the tax code of costly tax loopholes (see details of the plan below). The result will be a significant loss of revenue and a greater reliance on the sales tax, which hits middle-class and low-income taxpayers the hardest. Further cuts to public education, health care and public safety are sure to follow, which will come on top of years of cuts to these vital services during and after the Great Recession.