Raleigh – State and national GOP leaders today announced they’re looking to North Carolina as a model for tax reform. But, look closer and North Carolina’s tax reform is nothing to imitate and has only led to a “Carolina Comeback” for the wealthiest few.
2013 GOP Tax Plan: Tax Breaks for Yachts & Jets, More Taxes on the Poor
In 2013, Republicans in Raleigh passed a tax plan that preserved tax breaks for yachts, jets, alcohol, and country clubs. Republicans also swapped North Carolina’s progressive tax code for a flat tax that left millionaires paying significantly less. Meanwhile, the sales tax base was expanded, increasing the cost for low-income individuals, and working-class taxpayers ended up paying more.
- AP HEADLINE: Many Pay More Under New N.C. Tax Laws. “The tax reform package also eliminates several exemptions and deductions that benefited working class taxpayers.”
NC GOP Continues to Balance Tax Cuts on the Backs of our Workers
After 2013, Republicans doubled down, eliminating in 2014 the child care tax credit making it harder for families to afford childcare.
This year, they continued to hand out big tax breaks for the wealthiest North Carolinians and introduced new sales taxes which hurt middle class families, despite underfunding teacher salaries, failing to fully fund the Pre-K waitlist, and making huge cuts to the Department of Public Instruction and Attorney General’s office.
In fact, the 2017 GOP budget gives millionaires a tax break 85 times larger than what a working family gets.
Carolina Comeback? Only for the Wealthy
Once adjusted for inflation, North Carolina’s job growth, wages, and household income have all remained the same as before the 2007 recession. Meanwhile, average North Carolinians have seen their income disappearing faster, as they spend more money on the items they buy every day.
- WRAL Editorial: Tillis’ ‘transformed’ North Carolina is rosy fantasy: “The truth is he worked hand-in-hand with the business lobbyists to deliver a huge corporate tax cut that hasn’t stimulated the economy, nor led to further investment.”
North Carolina’s tax reform hasn’t led a Carolina Comeback and it hasn’t led to prosperity for average North Carolinians. Instead, it has left our education underfunded, our environment unprotected, and our lowest earners fighting to make ends meet. If anything, North Carolina’s tax reform is a model of what Congress should avoid.
“North Carolina’s Republican tax reform prioritized corporations and the wealthiest few over average North Carolinians, stunting economic growth and leaving families struggling to make ends meet,” NCDP Chairman Wayne Goodwin. “Congress should not make the same mistake.”