November 16, 2017/Press

GOP Tax Plan Hurts North Carolina Workers and Communities

RALEIGH – House Republicans are set to vote on a bill this afternoon that will increase taxes on middle class families and provide massive giveaways to billionaires and wealthy corporations. While Senate Republicans debate their tax plan in committee, the latest edition released late last night calls for permanent tax breaks for the richest, paid for by cutting health care and programs that working North Carolina families rely on everyday including Social Security, Medicare, Medicaid, and education.

  • The House Republican tax bill could force $25 billion in automatic cuts to Medicare next year, threatening  nearly 2 million North Carolinians who rely on Medicare.
  • The richest 1% of North Carolina taxpayers will receive 43% of the tax cuts under the House Republican tax bill.
  • 20% of middle-income taxpayers in North Carolina would even see their taxes go up, by $630 on average.

North Carolina taxpayers deserve a balanced tax reform plan that strengthens our workforce, and creates economic opportunities. The Republican tax plan is a bad deal for millions of working families across the country who will be worse off under this bill than if Congress had done nothing. On top of permanently raising taxes on millions of Americans, the Republican tax bill will cost American jobs by incentivizing big corporations to move American jobs overseas, making it harder for small businesses on Main Street to compete. It’s long-past time for Republicans to get serious about actual tax reform and join Democrats in building an economy that works for everyone.

“This is a tax plan created by and for Wall Street, and we’re the ones paying for it,” said NCDP Executive Director Kimberly Reynolds. “The GOP tax scam is nothing more than a gift to corporations, millionaires, and billionaires, while middle class North Carolina families will literally pay the price in higher student loan debt, medical bills, healthcare premiums, and taxes.”

Here’s a look at the impact of the Republican tax plan in North Carolina:

  •  The House Republican tax scam hurts teachers in North Carolina, by repealing a tax credit for teachers who buy their own school supplies.
  • College students in North Carolina will also be hurt, because the House tax scam makes student loans more expensive. More than 315,031 graduates in North Carolina take advantage of the student loan interest deduction House Republicans want to eliminate, saving $1,030 on average.
  •   North Carolina’s seniors will find it harder to save for retirement or cover their medical bills. In fact, the House GOP tax scam would take away all North Carolinians ability to deduct their medical expenses. Nearly 308,775 North Carolina residents deducted their medical expenses in 2014, saving $9,438 on average.
  •  The House Republican tax bill could also force $25 billion in automatic cuts to Medicarenext year. Nearly 2 million North Carolinians who rely on Medicare could be at risk.
  • Workers in North Carolina would be hurt by the corporate tax giveaway. The Republican tax plan incentivizes large companies to move jobs overseas by giving them a 0% rate on most foreign profits. While big corporations take advantage of this loophole, small businesses on Main Street will find it harder to compete.
  •  The GOP tax bill threatens to take the state and local tax deduction (SALT) away from tens of millions of households nationwide. The deduction ensures that Americans are not taxed twice on the same income. In North Carolina, more than 1 million residents would no longer be able to use the state and local deduction to save hard-earned money on their federal tax returns under the House tax bill.
  • The House Republican tax bill is a giant giveaway to wealthy corporations and rich North Carolinians, at the expense of everyone else:
    • The richest 1% of North Carolina taxpayers will receive 43% of the tax cuts under the House Republican tax bill.
    • The richest 1% of North Carolinians will receive an average tax cut of $47,880
    •   20% of middle-income taxpayers in North Carolina would even see their taxes go up, by $630 on average.
  •  The Senate Republican tax bill also benefits the wealthiest North Carolina taxpayers, while hurting middle-class families in our state:
    • The new Republican tax plan released late last night would raise health care insurance premiums on middle-class families, while already raising taxes for many of them, all to pay for permanent corporate tax cuts that hurt our economy.
    • Senate Republicans are using their tax bill to sabotage our health care system by repealing the individual mandate — which would raise premiums by double-digits, cause insurers to withdraw from markets, and leave 13 million more Americans without health insurance.
    •  In addition to dismantling the health insurance markets, the Senate GOP tax plan would make permanent tax increases on middle class families. Millions of families with children will be worse off under this bill than if Congress had done nothing.
    • Like the House bill, the core of the Senate package is a giant tax cut for wealthy corporations, from 35 to 20 percent. While tax cuts for individuals are only temporary, the Senate’s corporate tax cuts are permanent, paid for by cutting health care and other programs middle-class Americans rely on.
  • Distressed and rural communities could lose an important program that funds hundreds of hospitals, daycare facilities, alternative energy projects, and small businesses. The House GOP plan ends the New Market Tax Credits program, which has spurred nearly $2 million in community investments in North Carolina and created nearly 7,000 full-time jobs since 2003.
  •  Clean and renewable energy businesses looking to invest and build in North Carolina would be at a disadvantage under the House tax plan. The bill would phase out popular tax credits for wind and solar energy that renewable and natural energy industries in North Carolina rely on, making it more difficult for North Carolina businesses to qualify for the construction tax credits.
  • North Carolina is still recovering from the devastating effects of Hurricane Matthew. Under the House Republican tax bill, North Carolinians recovering from a natural disaster, such as a flood, hurricane, tornado, or fire would be more vulnerable because the bill eliminates a critical infrastructure financing measure designed to help states rebuild after sudden events.