TAX CUTS. HELP EVERYONE OR ONLY A CHOSEN FEW?
As conservative reformers in the Senate receive national praise for introducing a second round of broad based tax reduction to super charge job creation, Legislators face a clear choice. (FORBES 6/9/2015: North Carolina Lawmakers Build Upon Historic Tax Reform)
Build on the tax rate reduction for all income taxpayers passed in 2013, the plan that is helping North Carolina create jobs twenty percent faster than the national average?
Or go back to the old Democrat way of picking a favored few winners at the expense of everyone else?
– Raises the standard deduction nearly 25% to $18,500.
– Cuts personal income tax rates by 4.5%.
– Keeps the 2013 promise to cut the corporate income tax rates to 3% and ends the outdated practice of increasing taxes on corporations when they make capital investments and hire more employees in North Carolina.
– Reduces the business franchise tax – functionally a second statewide property tax on employers – by one third.
While Senators cut taxes $3.9 billion over five years, a modest amount given the hundred billion state revenue collections will likely total, they also fund a robust job incentives and recruitment package the Governor says is vital. They close special interest loopholes favoring large corporate hospitals that use a tax shelter intended for churches and charities to avoid paying any sales tax. They also end other special interest driven exemptions and loopholes like the newspapers and TV stations sales tax exemption for advertising.
Of course, the left is already saying that this round of tax cuts REALLY will devastate the budget. Just like they said the last round of tax cuts would until the $400 million surplus proved them wrong.
Republicans, led by Senate Finance Chairman Bob Rucho, charted a smart path in 2013 that got our economy going with across the board tax cuts and reform. Senator Rucho’s new proposal continues to build on the success of 2013. (FORBES: [Rucho] A Tax Reform Hero)
The question legislators must ask themselves is “Now that our economy is going in the right direction, do we really want to turn back to the old special interest game or should we continue with broad based tax relief and modernization?”