NC Tax Gimmick Puts Seniors, Families at Risk

North Carolina lawmakers are once again considering a constitutional amendment that would tie the hands of state budget writers for years to come, greatly impact the state’s credit rating and the ability of our state to pay its bills, and put vital programs for seniors, families and kids at risk.

This coming Tuesday, legislative members of the NC Senate Finance committee will discuss whether to allow a vote to amend the state’s constitution in the November election. Despite the economic circumstances facing North Carolinians, the constitutional amendment would lock in a 5.5% cap on the state’s income tax and if passed by voters in November would become effective in 2017.

NC Lawmakers are pushing a tax gimmick without fulling informing the public of the full impact of this type of vote.

TELL LAWMAKERS TO OPPOSE THE USE OF OUR CONSTITUTION FOR THESE PURPOSES.


Wisely, most states have rejected similar efforts because these tax plans, known as TABOR (Taxpayer Bill of Rights), actually do more harm than good. Colorado implemented a TABOR state income tax cap in 1992 and the state’s economic growth has suffered significantly. The state suspended its TABOR law for five years after realizing that it did not have the money to fund schools, colleges, health programs or infrastructure for roads.

It is essential that North Carolina has the flexibility it needs to provide basic services to our residents, and to invest in our communities. Significant revenue cuts and lack of investment in North Carolina will ultimately affect job stability, future job creation and individual financial security. Caps on state income taxes can also result in other tax increases, such as property taxes at the local level because counties will receive less state funding, increased sales taxes on items such as food, medications and utilities, increased taxes on auto repairs, air conditioning repair and other services, increased motor vehicle taxes, and the elimination of state tax deductions for seniors and families such as the medical expense deduction.

Say No to TABOR!  When it comes to the funding for critical services for seniors, families and children, and investing in the people of North Carolina, don’t be fooled by the hocus pocus of TABOR – it is simply a trick.

 

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