To hear Republicans tell it, corporations and the wealthy have been under attack for years. Class warriors have demonized the rich, discouraging people from making money and slowing down our economy. If we would just get government out of the way, let wealthy folks keep more of their money and stop regulating everything, the economy would take off.
So in North Carolina, they’re trying it. So far, it’s not working out so well, at least for most of us. In 2007, the wealthiest in North Carolina paid 6.8% of their income in state and local taxes. The poorest 20% paid 9.5% of their income in state and local taxes. After tax cutting Republicans took control, in 2009 the top 1% was paying 6.5% and the poorest 20% was paying 9.8%. In fact, everybody paid more of their income in state and local taxes except the top 1%. And that’s before the tax laws take effect.
This year, the wealthiest paid 1.7% less in income taxes than they did last year. The poorest lost their earned income tax credit. And increased sales taxes on things like college dining hall meals means an increased tax burden on poor and middle class families. So, the wealthy are now likely paying significantly less than 6% of their income in local and state taxes while the poorest will likely be paying significantly more than 10% of their income. That’s what Republicans call fair.
And what’s the impact? Well, according to the Rockefeller Institute of Government at the State University of New York, North Carolina has seen a 9.7% drop in state tax revenue. Personal income tax revenue dropped by striking 17.9% while sales tax revenue increased by only 4.4%. Only six other states in the country saw such a loss of revenue.
The governor’s budget director, Lee Roberts, says not to worry. It’s too early to make projections yet. So let’s not make projections. Let’s make predictions.
I predict that we will have significantly less revenue than we did last year. I predict that the poor and middle class will pay a greater share of their income in state and local taxes while the wealthiest will pay a lower share. I predict that we’ll see additional cuts to our schools, community colleges and universities and a host of other programs that help poor and middle class families. And, finally, I predict that Pat McCrory and the GOP legislature will tell us that we have to tighten our belts so the rich can loosen theirs.
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 >
Thank you, Mr. Mills, for this insightful article. It backs our worst nightmares about NC’s trajectory with facts. In V.O. Keys’ 1948 “Southern Politics,” he described all of the reasons that NC historically developed as a more progressive state than our neighbors — small towns, a thirst for education, no large port to support a plantation culture, el.al.. Now within in a sort period of our history, a small group of greedy politicians (mostly born out of NC) have turned our beloved state into a regressive place. Those of us who built better lives with the help of government programs supported by our fellow tax payers must demand that we hand similar good services and programs to NC’s youth. For those of us who have prospered because we were supported by NC, a legacy must be upheld. The greedy must be voted out.
Unfortunately, the working class voters will not discern their diminished plight until tax return preparations in early 2015. The elimination of the earned income tax credit, so that the rich can gain an undeserved windfall, is not Christian and not of the best of American tradition. It’s pathetic ignorance that rules currently in Raleigh. Change will burst forth in 2016.
Not only have we become Mississippi but we will soon become Kansas. You are right that the that there will be more “belt tightening” with cuts to every level of education, more of the poor getting knocked off any aid, etc. We will also have our bond rating lowered. Then it will cost the State so much more to borrow any money–especially for the Gov’s “buy votes” proposal to build roads in rural areas since his new transportation funding scheme did not work out so well for his friends in Republican counties.
Just to think where we were not so long ago, where we are now, and where we are heading.
But will the voters get the message? And will opposing views matter, given the voter suppression laws put in place by the GOPer supermajority in Raleigh? Are the concerns of the people doomed until at least 2020? And what will NC really look like by then?
Not long ago,
Not far away,
In a place called Raleigh town.
A group came to power,
And with each passing hour,
Ensured the common folk did suffer.
If you work for a living,
They aren’t real forgiving,
They use you for their own well-being.
You can be like us,
If you work hard and trust,
And continue to vote us to power.
But their tale is a lie,
Since good folks do try,
And forever fall and fail to see why.
It’s not common sense,
Its dollars and cents,
The greed of the few preying upon many.