Today, North Carolina institutes its tax hike on the lower middle class. The Republicans in the legislature decided that we need to tax services to fix things like flat tires and plumbing problems. They say these taxes are fairer than the income taxes because everyone shares the burden equally. But that’s not true. Everyone may have to pay them, but the burden is far greater on a household making $25,000 a year than it is on a family making $250,000 a year.
The taxes were really implemented to offset the massive tax cuts the GOP gave to the rich and corporations. By flattening the income tax, the GOP says they made it fairer. While everybody may now pay the same percentage of income tax, they reduced the amount families making over $250,000 pay by thousands of dollars a year. They lowered the taxes for families making the median income by a hundred dollars a year or less. The sales tax increase will offset most, if not all, of the income tax cut for working families. It will barely affect the tax cut given to rich people.
North Carolina needed tax reform and some of that reform needed to include broadening the tax base through some sort of expanded sales tax. The legislature could have pushed taxes on services that are disproportionately used by wealthy people and big businesses. They didn’t. Instead, they pushed for sales taxes that would hit the pockets of the poor and lower middle classes hardest, the same people who were hurt most by the Great Recession.
Initially, Pat McCrory demanded that the tax reform be revenue neutral. Like a lot of things, though, McCrory got steamrolled by the legislature and supported tax reform that dramatically reduced funding for schools, universities and other programs that benefit the middle class. McCrory, of course, tried to change the definition of revenue neutral rather than admit that he opposed the legislature.
Right now, the middle class in this country needs a break. They need more money in their pockets and they need hope for the future.
However, they way the GOP sees it, the middle class needs to learn to live within their diminishing means and quit asking for corporations and rich people to subsidize their lifestyles. Nothing exemplifies this attitude more than Republican tax reform in North Carolina.
Thomas Mills is the founder and publisher of PoliticsNC.com. Before beginning PoliticsNC, Thomas spent twenty years as a political and public affairs consultant. Learn more >
So, why do middle/lower class citizens vote Republican? The people Troy cited merely repeated the bumper sticker slogans thrown out by the republicans. Most of the people with whom I’ve spoken [such as my brother who lives in a Western state and became brain-washed when he foolishly married a Republican] haven’t actually “thought” about their economic situation–they just know it’s bad, and they’re angry as hell and want to blame someone.
Unfortunately, the Republicans have played the “us vs. them” game very successfully to stir up social/religious issues as a diversion . During the last presidential election, my brother was aghast about gays and how they were going to ruin our American families. Most middle/lower class Republican voters I know are certain that anyone who supports a woman’s right to choose anything related to reproductive rights is on the fast slide into hell. There are other social issues as well that are used to distract voters from their own best interest.
As Gail Collins put it (talking about Rubio being the “sensible establishment candidate”), they “believe no one should pay taxes except the people who worked for the money”.
I utterly and totally agree with you. Every statement, each word or what you’ve written resonates with everything that is bad about the Republican party for people that go to work every day for someone else, or work for themselves in a niche industry or small (5 people or less) mom and pop business.
The sad aspect is they got what they asked for.
Someone said, “Well, there’s really no difference between the parties.” The people believed it.
Someone said, “Flat income tax helps everyone.” The people believed it.
Someone said, “Republicans care about working families.” The people believed it.
Someone said, “We need tax cuts for the job creators. That will help drive the economy.” The people believed it.
Someone said, “We’re the less tax and more freedom party.” The people believed that too.
The true benefactors of Republican policy aren’t you or I. They balance stock portfolios and speculate in real estate. They oversee work, they don’t actually do it. They formulate plans and ‘big pictures’ of their visions. They leave the actual implementation and details to those who are charged with getting their hands dirty fulfilling that vision. They want government small, ineffective, toothless. They want government out of their way so they can pollute, take, and run roughshod through, over, and around anyone they choose; anyone that stands between them and that next dollar. We see the fallout from that. They don’t like labor laws that protect the people they employ. They don’t like minimum wages that tell them how much they should be paying. They don’t like 8 hour work days, vacations, or holidays. That cuts into their pocket and they didn’t get to the position they have in society by being benevolent and charitable.
Is that class warfare? Nope. The division line between the haves and the have nots was drawn a long time ago. I’m just pointing it out. I’m not a politician, I have no influence or control over social policy. But I can point out what I see. I can draw your attention to the inequity of what is happening. Don’t shoot the messenger. I didn’t cause it; I’m just pointing it out to you. While I’m gesturing, when one of the best read books among the business elite is Sun Tzu’s “The Art of War”, that should tell you something about the manner in which business is not only conducted, but the psyche of the person conducting it.
If you come in above that $250k income threshold and you’re a Republican, I understand. I truly do. I don’t agree with them, but I understand why you have them. You’re voting that way because those convictions are perpetuating your own interests. I understand your political convictions much better than I do someone in the $25-$34k income bracket that voted Republican. Nothing moves without money and economics. If you’re in that lower income bracket, voting Republican is voting against your own interests; economic interests. If you want fall on your sword over one of those niche hot button topics that politicians like to spew to keep you focused on their hand while they pick your pocket, well, shame on you.
This is one of the most cogent, powerful expositions that I have ever read about what’s happening here in NC, including what many who voted for the Republican leadership we currently have *thought* they were voting for (or in many cases *reasoned* why they didn’t even need to bother to vote against). I actually tried to “like” this for a moment before I remembered that this is not FB. This piece should be an op-ed in the N&O and Charlotte Observer. Thank you for this!
Earlier today, i listened to a GOP voter who got hit with the increased taxes yesterday. Not a happy camper and was quite aware of who was responsible. Followed about 20 minutes later by two friends who were just learning that their theater tickets now cost more. Again, not a happy reaction. All are voters.