A policy report from the North Carolina Justice Center’s Budget and Tax Center raises questions about the success of North Carolina’s 2013 tax reform and the future of North Carolina funding given the soon-to-be-seen effects of the federal tax reform in December 2017.
The NC Justice Center is a progressive research and advocacy organization. Their mission is "to eliminate poverty in North Carolina by ensuring that every household in the state has access to the resources, services and fair treatment it needs to achieve economic security," according to the organization's website.
Alexandra Sirota, the Budget and Tax Center director, wrote in her brief that the primary focus of the N.C. General Assembly during the next legislative session should be to address upcoming cuts in corporate and personal income tax rates in January 2019.
Sirota said North Carolina will lose roughly $900 million over a year in revenue from the scheduled taxes, which she said will lead to the state’s budget being out of balance, requiring funding cuts in public health, environmental protections and education.
“Removing the scheduled tax cuts from statute this session is the first step to ensure that North Carolina can adequately invest in its future, strengthen the economy for the long-term and prepare for likely external shocks to the state’s economic and fiscal health,” she said.