NC must correct its tax code to ensure fair recovery – for everyone

As North Carolina seeks to chart a way out of the pandemics harmful impacts on individuals, communities, and the economy, tax political choices will be important to builda more inclusive economy.

To ensure a fair recovery, we need to fix our tax code upside down and ensure that everyone can prosper, not just a few rich.

The signs are clear that the current trajectory of our state in this recovery wbadly quit income even more consolidatefrom the top. A privileged few have been isolated from the brunt of economic and public health damage – those who have been able to stay home and stay at work. Many companies have reaped record profits.

Growing income inequality and the inequitable impacts of the pandemic would block progress for all of us by ensuring a strong and inclusive economy. All in, the hardships have worsened and people across the state continue to struggle to put food on the table and a roof over their headss.

The reality is that the only way to ensure recovery does not deepen inequality is if our leaders make political choices that ensure that every person can seize the opportunities and repair a rigged system so that the the rich and powerful do not continue to receive disproportionate benefits.

Senate Bill 710 and Bill 556 provide a first step to approach North Carolina needs a tax code that addresseses inequality and allows public investments proven to support economic well-being.

These invoices would simply implement a graduated tax rate tax income over $ 500,000 per year at higher rates up to constitutional state 7 percent cap, and aligning ourselves with neighboring states by raise the corporate income tax rate from 2.5% to 5%.

It’s a very popular movement. North Carolinians want to see the very rich and big business contribute to the public good.

These invoices would not cancel all the tax cuts granted to the very rich in 2013. They would, however, give North Carolina the opportunity to reconcile a part of the ground lost after years of budgeting regardless of the needs of our state or the well-being of the people. They would like make it more likely that every North Carolina has the chance to recover from the range of misdeeds of the past year.

Everyone should have access to educational opportunities, health care and an economic goodbeing. A $ 2 billion increased investment would allow North Carolina to:

  • Provide all teachers a 15% salary increase, fund all pedagogical support staff to industry recommended levels, and deliver universal meals to students in Kindergarten to Grade 12;
  • Building the affordable housing that is lacking in communities across the state and ensuring that housing costs are not a burden on low-income households;
  • Provide quality health care in every community and strengthen the network of public health institutions that educate the public about health risks and promote a healthy lifestyle

that of North Carolina running the tax code asks the top to pay less as a percentage of their income than taxpayers with poverty-income levels. By implementing tax policies that would require only 1% of North Carolina to pay a little more, North Carolina can invest in a more equitable and just recovery for everyone.

Alexandra Sirota is director of the Budget & Tax Center, a project of the NC Justice Center.

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