FACT CHECK: RGA Ad Continues to Distort Walter Dalton's Record

The RGA is doubling down on attacks that have previously been found inaccurate by press to try to distract from Pat McCrory’s plan that could raise the sales tax to 13.88 - 192% increase

Latest RGA Ad Distorts Walter Dalton's Record

RGA’s Continues to Use Numbers Debunked by the Authors of the Study they Cite: 

RGA’s Numbers on Sales Tax Increase Have Been Debunked by the Authors of the Report They Cite. “The RGA cites a study by the UNC Center for Competitive Economies at the Kenan-Flagler Business School. The problem: The study never mentions that such a sales tax hike would cost the state 8,000 jobs. Released in April 2011, it suggests a 1-cent reduction in the sales tax could create 11,700 private sector jobs. It did not consider possible layoffs in the public sector as a result of reduced revenues. Report authors Jason Jolley and Lane said it is reasonable to assume tax hikes could have a negative affect on employment, but their research says nothing about how many jobs could be lost with a sales tax increase. To assume the inverse of their study is “layman’s logic but certainly not what our center would attest to,” Lane said. The economy also changed since the study, he added, making it difficult draw conclusions from it now. Ruling: The description of the sales tax hike is roughly correct. Its affect on the economy is unproven and not accurate.” (News & Observer, 5/15/12)

  • Dalton has Ruled Out Sales Tax Increase as Governor. “Democratic Lt. Gov. Walter Dalton says he won't seek a sales tax increase in his first budget plan if elected North Carolina governor.” (AP, 8/16/12)
  • Service Taxes off the Table for Dalton, On the Table for McCrory. “Dalton has been critical of McCrory's call to consider broadening the sales tax base to include some services, something that experts agree would be a likely part of any tax reform effort. Asked about this, Dalton said he would like to streamline sales taxes and close loopholes. Later, a spokesman clarified that Dalton disapproved of any call to tax services. ‘Service taxes are on the table for McCrory. Not Dalton,’ said Dalton spokesman Schorr Johnson in an email.” (WRAL9/13/12)
  • News & Record: “The lieutenant governor doesn’t work for the governor… the two have not had a close relationship.” “Perdue is the Democratic governor; Dalton is the Democratic lieutenant governor. But they are not a team. The governor and lieutenant governor are elected independently. The lieutenant governor doesn't work for the governor. While Republicans naturally want to associateDalton with the unpopular lame-duck governor, the two have not had a close relationship. When she was battling Republican legislators over last year's budget, Dalton gave her very little public support.” (News & Record, 5/30/12)
  • McCrory’s Tax Plan Could Mean Large Tax Hikes on Middle Class. “McCrory has said that he would like to lower and/or eliminate income taxes and eliminate corporate income tax rates, but those are broad outlines… McCrory has not put out a tax plan specific enough to evaluate. However, the leaps made by this ad aren't crazy, and similar jumps in logic have been made by reporters evaluating McCrory's economic outline.” (WRAL9/26/12)
  • According to North Carolina Budget and Tax Center, Without New Service Taxes Shifting Income Taxes to Current Sales Taxes would Require Raising it by 192% to 13.88. “Some North Carolina legislators are considering a shift away from the personal income tax and toward a revenue system that primarily relies on consumption based taxes which would require greater contributions from low- and moderate income households in total taxes. Such a shift, if revenue-neutral, would raise the state sales tax rate to 13.88%.” (NC Budget and Tax Center, September 2012)