Hurricane Florence demonstrates why the proposed constitutional amendment to lower the state’s maximum personal tax rate from 10 percent to 7 percent is a terrible idea.
There are and will be enormous costs from Florence’s wind, water and flood damages for the state’s people and its infrastructure. Roads and highways will have to be repaired along with electric systems, water and sewer plants and other infrastructure.
What if there is a second hurricane this season that hits another part of the coast? Or an ice storm that covers half the state?
Or what if the federal government decides to make each state pay all the costs of Medicaid?
Our state government needs to have the ability to respond to different economic ills like these, and the most equitable method is through the state income tax. This amendment will tie the hands of future legislatures.
The outcomes if this amendment is approved are:
- The wealthiest will continue to get the biggest tax breaks. North Carolina has been changing its tax code to benefit the wealthy and powerful, not to help most North Carolinians. Limiting the maximum income tax rate would lock in the tax cuts for the wealthiest households.
- Lawmakers will have to raise other taxes to make up the difference. Without the ability to align the income tax rate with needs, other taxes such as sales taxes and property taxes will be needed, asking more from low- and middle-income North Carolinians. Already taxpayers with incomes below $60,000 pay as a share of their incomes nearly two times what millionaires pay in total state and local taxes. This would make it worse.
- The state will not be able to fund schools and other priorities. Income tax cuts since 2013 have already greatly reduced our resources to invest in the things that make North Carolina thrive, like education, health and well-being. Capping the tax rate this low would permanently limit our ability to meet future needs, such as rebuilding after a natural disaster or another recession. It also limits the state’s ability to respond to federal cost shifts.
- An income tax rate cap will tie the hands of future generations. This cap won’t give lawmakers any powers they don’t already have. It’s just an extreme and permanent measure to take power from future generations. It will limit the tools available for future voters and policy makers to make choices.
I urge you to vote no on this proposed amendment and the five others that will be on the Nov. 6 ballot.
3 Responses
Sales taxes more heavily fall on the poor and middle classes. (now expanded to services, affecting the lower classes who have to repair things rather than buy new). Property taxes, which a cap on income taxes would accelerate, are the most regressive of taxes since they do not consider your ability to pay. Income taxes are the fairest because they DO consider your ability to pay. Lose your income, you no longer have to pay those income taxes. Lose you income, you have to pay your property taxes or lose your home. (If you haven’t already because of an illness). There will come a day when North Carolina won’t be growing as fast but its costs for infrastructure and the the like will. Pressure will built on property taxes and without an outlet to raise income taxes — again the fairness means of taxation — they will grow out of control as counties and municipalities seek alternate means to raise funds in the face of declining state aid of any kind. Case in point: New Jersey has the highest property taxes in the nation and became the No. 1 out-migration state under ex-Gov. Christie, who threw gas on that fire with a massive income tax cut for the wealthy in his first term. Many refugees from NJ are coming here, unable to pay $1,000 or $2,000 A MONTH in property taxes. This NC legislature’s action on taxes here are taking NC down the same road.
So interesting. Would it kill your readers to know what the current tax rate is? Would it kill your opinion to actually report some factual information in your opinions? What is the current tax rate Ms Pelosi? How many budget cycles have passed with budget surpluses since 2010? What part of 2.6% budget growth is so scary that you don’t want your readers to know about? Which parts of 57% of our budget that is spent on education are so terrible that you don’t want your readers to understand? We have been under the 7% for a while now, and look, we managed to pay off all the debt left by Democrats before the recession, plug the massive spending gap in Medicaid spending, AND create a $2B surplus that will now be partially used to clean up after Florence, without raising taxes. What is so scary about all that, that you don’t want your readers to know. Would tell them where you cribbed your bullet points? Because a simple google search will tell them. Why just yesterday Governor Cooper remarked to President Trump how well our state is doing, specifically he pointed to our robust economy, and then went on to state how great our education system is. Why would you not want your legions of readers to know these things?
Thank you for speaking out on this critical issue. You are absolutely right.