GOP overstates the merits of NC tax reform

by | Nov 20, 2017 | Editor's Blog, Tax Reform | 4 comments

As the Senate debates its version on tax reform, North Carolina Republicans are touting the reform they passed as the model to follow. They claim the economy is one of the fastest growing in the nation and they proudly point to surplus revenue that’s filled out coffers. They conveniently ignore a lot of other realities.

Sure, North Carolina’s economy grew a little faster the last few years, but that’s mainly because it was playing catch up for the first few years of GOP control when we lagged behind our neighbors and everybody else. Since 2006, our GDP lags slight behind the nation as a whole. Our median income is just now reaching levels of where it was in 2007, before the Great Recession. Almost all of the growth has come from Raleigh and Charlotte despite legislators’ efforts to politically hamstring those economic engines.

On a personal level, I’m solidly middle class and I’ve seen no real adjustment in my personal financial well-being under the Republicans. I took a huge hit following the recession in 2009, but I’ve since recovered, though I’m still trying to pay off a little debt from that time. A look back at my state income taxes indicates that I’m paying about the same as I’ve always paid.

However, I pay hidden, voluntary taxes that I never paid before. I’ve had children in public schools for almost 25 straight years. Back in the 1990s and early 2000s, most school programs were free. Today, we’re asked to contribute for everything from online math programs to school dances in addition to the PTA dues that have been around forever. They also ask for parents to help provide financial assistance for students from economically disadvantaged families. Per pupil spending is among the lowest in the nation.

The legislature also quietly passed a myriad of other fees that disproportionally hurt poorer families. They raised rates at state parks, places where families on a budget can go for vacations or weekend getaways. They raised vehicle registration fees that, again, hurt families who are struggling. When they increased the sales tax, they included services like automobile repair, taxes that will disproportionally hurt people who drive older model cars.

While legislators brag about cutting the size of government and putting money away for a rainy day, state agencies and employees are suffering. Our prisons are so understaffed they’ve become dangerous to guards and other employees. The death of three guards in Pasquotank County highlighted the low pay that’s preventing the state from finding the qualified employees they need. The state is saving money at the expense of the safety of its employees and citizens.

It’s no wonder Republicans brag about North Carolina tax reform. It’s all they’ve got. They’ve damaged the state in so many other ways. Our reputation has taken a huge hit from ill-conceived laws like HB2 and the voter suppression bill. The GOP claims about the benefits of their tax reform law are dramatically overstated and disproportionally benefit the wealthy and big corporations. We’re not a model for tax reform. We’re a model for putting more money into the pockets of rich people at the expense of our services and on the backs of the less fortunate. That’s not a model worth following.

4 Comments

  1. The Ghost of Elections Past

    The R’s are serving the people of North Carolina ‘Moore-Bergers,’ which are made from bull!

  2. EBRUN

    Economic Success for North Carolina in 2017

    North Carolina wins 2017 Prosperity Cup by Site Selection Magazine

    North Carolina among 16 states prepared for economic recession

    North Carolina passes 30 states in 3 years of Tax Foundation rankings

    North Carolina top-5 for wage growth, says U.S. Census Bureau

    North Carolina No. 5 for business climate, corporate execs say

    North Carolina is best state for business startups in study

    North Carolina 5th best state for business in 2017 CNBC rankings

    North Carolina ranked #1 for tech job growth in N.C.T.A. study

    North Carolina 5th best balanced budget in Mercatus Center study

    North Carolina 1 of 12 states with unanimous ‘AAA’ bond rating

    North Carolina has two cities in top-five for tech job growth

    North Carolina passes 30 states in 3 years of Tax Foundation rankings

    North Carolina had no layoffs in September for first time in 7 years

    North Carolina unemployment lowest in 17 years

  3. Betty McGuire

    Hi Thomas, excellent analysis as usual. When will NC voters understand this? One correction. In talking about the deaths at Pasquotank Correctional Institution you should identify them as ‘Correctional Officers’ not ‘guards.’ We don’t have any ‘guards’ in our prisons. Thanks.

  4. JC Honeycutt

    Duh…of course you’ll have a surplus if you maintain/increase taxes and fees and fail to spend on multiple services that North Carolinians want and need. I could save money if I stopped buying groceries: in fact, in a month or two, I’d no longer need groceries or anything else except a coffin and a cemetery plot–or the state could cremate me and then (no doubt) bill my heirs. Stop patting yourselves on the back, Republican legislators (a term I use loosely): I’m not the only potential voter who is sick and tired of being dumped on.

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