Take Action! Write a letter to the editor about the deep tax cuts that will produce harmful revenue loss

Senate Bill 526, the latest Senate tax proposal, is chock full of ill-conceived tax theories that have repeatedly failed to deliver on the promise of stronger economic growth for everyone. While proponents claim SB 526 will boost the economy and help families, the proposal will  neither provide any real solutions to the state’s broken economic model nor address declining incomes among middle-class and low-income households. SB 526 will also result in over $1.5 billion in lost revenue for reinvestment in public services and programs—such as schools, public health, and the courts—the very things that are the building blocks of a strong economy.

Coming on the heels of the 2013 tax cuts that primarily benefited the wealthy and profitable corporations, SB 526 would:

  • Amount to over $1.5 billion in lost revenue for public services and programs by providing deeper income tax cuts, including reducing the personal income tax rate from the current rate of 5.75 percent to 5.5 by 2017
  • Provide huge tax cuts to profitable corporations by further reducing the corporate income tax rate from 5 percent to 4 percent by 2017 and by changing the way profitable corporations can apportion their income
  • Increase subsidies for corporations by expanding the business incentives program

North Carolina needs to reset the fiscal debate: stop the tax cuts and raise the bar through smarter tax policies. Now is the time to set a new course, not double down on the previous tax changes that are hurting working families and costing us all far more than expected.

We urge you to Take Action! Write a Letter to the Editor of your local paper about how failing to raise adequate revenues will leave the state’s economy on shaky ground and harm the quality of life of North Carolinians across the state.

Here are two key points to make when writing your LTE:

  • This bill contains unnecessary giveaways to corporations—who already reaped considerable gains under the 2013 tax plan—at the expense of average families.  Corporations will receive yet another tax rate reduction and multi-state corporations will especially receive an unnecessary tax giveaway from the adoption of Single Sales Factor—neither is likely to create jobs and will result in a revenue loss for our state.
  • It is unclear how these tax cuts will be paid for but the price tag will involve the pursuit of one of two bad ideas (or a maybe a little of both!). The proposal comes with a price tag of more than $1.5 billion—and comes on top of the nearly $1 billion annual cost of the 2013 tax changes. This could mean further budget cuts, which translates to fewer dollars available to educate our children, ensure efficient courts, and protect the health and safety of families. North Carolina is already at historic lows in terms of our investment levels as a part of the economy. Further tax cuts will lock in even lower levels of spending, crippling the state’s ability to invest in ladders of opportunity across the state and replace the worst cuts from the economic downturn. Another way legislators may choose to pay for these income tax cuts and corporate giveaways is to expand the sales tax, this means we may be facing another tax shift in which low and middle income families take on an even bigger tax responsibility when they already pay a higher percent of their income towards taxes than those at the top.

To join the Budget & Tax Center Letter to the Editor Corps and receive timely email updates about issues to write about, email julia@ncjustice.org.

Step 1 - Select a Recipient

Letter to the Editor

The Letter to the Editor Section is one of the most widely read sections of the newspaper and can reach a large audience. It allows community members to comment on the way issues are being addressed in the media and to influence the topics the local paper may choose to cover. Elected officials often monitor this section of the newspaper and take notice of constituents' opinions.

We've made it easy for you to contact your local newspaper with your views, but editors want to hear from you in your own words.

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Step 2 - Write your message