Preliminary Analysis of Joint Tax Plan: Still a big tax cut at the top

As we wrote yesterday, the joint tax plan negotiated by leaders in the House, Senate and the Governor is a bad deal for North Carolinians.

Here is why:

• The joint tax plan is a big tax cut for those at the top.  Those with average incomes of nearly $1 million would receive a total tax cut of nearly $10,000.
• When compared to the current experience of taxpayers now with a state Earned Income Tax Credit in place, the plan represents a tax shift to low- and middle-income taxpayers.  The bottom 80 percent of taxpayers would experience an increase in their taxes on average.
• The corporate income tax reduction will still overwhelmingly benefit shareholders out of state.
• When fully implemented the tax plan results in a revenue reduction compared to current law of more than $600 million.

Comprehensive tax reform means addressing the problems with our tax code: that it is not aligned with the economy, that it is upside-down and unable to support the changing needs of our growing population and economy.  This tax plan makes these problems worse.