RALEIGH – D.C. Republicans are poised to vote today on the final version of a tax scam that will hurt North Carolina’s middle-class families while offering generous giveaways to corporations and the wealthiest few.
The newest bill, released Friday night after being crafted behind closed doors, looks worse for North Carolina than the original proposal thanks to a giant loophole benefiting real estate investors and provisions that could actually encourage companies to cut jobs.
North Carolinians know putting corporations above everyday people doesn’t work – NC’s Republican lawmakers passed a similar proposal in 2013 that left our state’s education underfunded and our lowest earners struggling to make ends meet.
While corporations will be gifted permanent tax cuts and North Carolina’s wealthiest 5% will receive over half of the tax cut share, low- and middle-income families will pay the price:
- Low- and middle-income North Carolinians will face a tax hike of nearly $300 on average in 2027.
- Instead of reauthorizing CHIP, which provides health care for more than 256,000 North Carolina kids, the GOP has prioritized cutting the estate tax for the richest 110 families in North Carolina.
- All provisions targeted to families are temporary, including last-minute changes to the Child Tax Credit.
- The changes Republicans made to the Child Tax Credit will do nothing for children from low-income and minimum wage working families – including 355,000 children in North Carolina– who will still only get $75 at most. Meanwhile, wealthy families will receive the full benefit.
Nationwide, the numbers are just as alarming:
- Nearly 13 million Americans will lose their health insurance
- The tax scam will add $1.5 trillion to the deficit over the next decade. Republicans plan to use this as an excuse to cut Medicaid, Medicare, education, food stamps, and other critical programs families with children rely on.
- The top 1% will receive 83% of the gains and the top 0.1% will receive 60% of the gains
“Once again, DC Republicans are rigging the system for their corporate backers and their donors and against the needs of working families,” said NCDP Executive Director Kimberly Reynolds. “Hundreds of thousands of North Carolinians are going to pay the price for this tax scam, while the top 1% reap the benefits.”