NC Tax Plan: Signed, Sealed...Delivers Big Gains for Upper Class
RALEIGH, N.C. - It's a deal Robin Hood would be sure to protest.
Many North Carolina residents will pay higher taxes cumulatively next year now that Gov. Pat McCrory signed the tax overhaul deal on Tuesday. However, with new tax cuts for mostly high-income taxpayers, the net loss for the state is $600 million in revenue.
That loss in revenue could have a long term impact on funding for schools and other programs, said Amber Moodie-Dyer, coordinator for Together NC.
"We're concerned that the loss of this revenue, which primarily is benefiting the wealthiest taxpayers and corporations, is a loss for children in schools, is a loss for families," she said.
The state's current budget proposal being considered by lawmakers includes cuts to education. Raleigh mother Melea Rose-Water has a 1-year-old son and said she worries the reduced revenue stream could change what kind of classroom her son will find when he starts kindergarten.
"As a mom, it just absolutely scares me for the future," she said, "and I want him to have the best educational opportunities that he can possibly get."
According to supporters, the tax plan will result in more money for people at various income levels and make North Carolina more competitive with other states as it tries to recruit business. Aside from the immediate effects of the tax overhaul, Moodie-Dyer said the fallout from the loss in revenue could ultimately hurt business recruitment.
"We want to attract businesses here, we want to attract folks to our state," she said. "When the quality of life goes down, something as small as a minute tax rate change isn't going to help get businesses to come here if they feel like their kids aren't going to get an education, if they feel like their grandparents aren't going to be well taken care of."
Under the plan, the state earned income tax credit - which largely benefits low-income individuals - will be eliminated. The sales tax holiday weekends for school supplies and EnergyStar appliances also were repealed.