Earlier today, Sen. Harry Brown held a press conference touting support for his sales tax redistribution plan. So far, the plan has met with little fanfare in the State House, with one member even denouncing it as “Marxism.” Gentler legislators might refer to it as a “Robin Hood” plan, taking from the rich counties and giving to the poor ones.

At the press conference, Brown brought in a number of leaders in rural counties. It’s no surprise why they’re for the plan: it would help them immensely, at no cost to them. On the other side (and obviously not present at the press conference) are those who represent the interests of urban counties. They increasingly control the fate of North Carolina’s policies and they hate the plan.

Sure, rural counties need help, they acknowledge. But the General Assembly shouldn’t be killing the goose that laid the golden egg. Economic prosperity for urban counties benefits everyone, and instead the legislature should craft a plan that helps rural counties while not hindering the progress made in urban ones. That is, of course, easier said than done. Another thing the Senate wants to straighten out – making sure Wake and Mecklenburg, which are 20% of the state’s population, stop getting 86% of the state’s incentive funds.

What’s going to happen to the bill? The House, obviously, is not enthusiastic about it. There would probably have to be substantial modifications to get them to swallow it. Governor McCrory has made vague comments about a potential veto threat. Still, it wouldn’t be extraordinary if this plan becomes law, in some form. In the meantime, expect the debate over the plan and its effects on the state to continue.

8 Comments

  1. Mark

    Taking money from on-average rich urban counties and giving it to on-average poor rural counties is not the same as taking from rich people and giving to poor people.

    It’s not Robin Hood at all. But this conflating of rich counties with rich people and poor counties with poor people continues to fog the debate.

    Here’s my worst-case scenario if this bill passes: Sales taxes paid mostly by middle- and low-income people in cities will be given to governing bodies in rural counties that are controlled by the rural rich, who will use it to keep property tax rates down, not to improve education and other public services. In other words, this bill could be a case of Reverse-Robin Hood.

    • Norma

      Interesting view. A bit cynical, but sadly probably accurate re what would actually happen with new funds. Thanks.

    • Ethel Simonetti

      Yes, I fear as well, Mark. The on-average rich county citizens will become even more disaffected and disheartened re the management of State affairs; while the on-average poor county leaders will be able to rely on a no-strings-attached windfall which will enable them to dodge their responsibilities, while “kicking the can.” A lose-lose, IMO
      Ethel

  2. Apply Liberally

    Thanks, Eilene, but, really, the NCGOP’s track record and backward proposals make it almost too easy.

    As Thomas Mills’ blog today (https://www.politicsnc.com/like-north-carolina-circa-1950) outlines, their “Carolina Comeback” is utter fantasy. And their sales tax redistribution plan is sheer spitefulness against the state’s once-again-prospering metro areas…..

  3. Eilene

    Apply Liberally… my favorite comment of the week… maybe even the month!

  4. Apply Liberally

    Why should moderates, liberals and progressives support THIS particular wealth distribution program when they are always ridiculed and attacked by conservatives/regressives of supporting wealth distribution programs?

    Why should residents in our larger metro areas want to bail out residents in rural areas, especially when it has been highly conservative/regressive rural voters and their NCGA reps who take every step to mute, discount, or skew (via gerrymandering) metro voters’ voices and interests?

    How about NOT using sales taxes to help rural counties. How about using other tax revenues, the kind that won’t pit metro and rural areas against each other?

    How about creating one single jobs program that seeks to help workers in counties that are the worse off economically? Oooops, sorry, I forgot. The NCGOP doesn’t “do” jobs programs.

    Why is a sales tax allocation formula change even necessary at all, what with trickle-downing, the new tax reform, and that “Carolina Comeback” working out so well for the NCGOP and the state??

  5. Norma

    Robbing Peter to pay Paul has never worked. This idea just breeds resentment.

    How about something that might help folks in those counties by supporting specific ideas tailored to their needs and not just a blunt, unfair redistribution plan. What economic projects might actually work in those areas?

    Crazy perhaps, but why not provide a break on gas taxes for a period of several years for residents (not visitors) in some fashion? Seems reasonable to assume their gas costs are considerable. Or provide greater public school dollars for a decade. Or face the reality that rural hospitals need the funds from expanded Medicaid. Or restore the funds for historical restoration sites which can attract tourism dollars. Or decentralize some of those government offices in Raleigh to rural areas. (Yeah, I can hear the screams as I write this\, but tell me why many of them actually need to be in close physical proximity to the legislature or executive offices. It is not exactly horse and buggy days!)

    I bet asking folks in those area (NOT their elected officials) what they want and what ideas they have would produce some ideas worthy of consideration.

  6. Tim Peck

    “… taking from the rich … and giving to the poor …”

    Which is a solid progressive principle. And yet, it is progressives who have an issue in this case.

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