NC group pushes tax reform

May 24, 2011

The N.C. Justice Center in April unveiled a major report to modernize North Carolina’s revenue system.

“The purpose of the revenue system is to fund investments in the public structures— schools, courts, hospitals, colleges and universities, and infrastructure—that are critical to building and preserving a strong middle class and a 21st century economy, but North Carolina’s revenue system is failing the people of the state,” according to a press release.

“While the Great Recession directly caused the collapse in state tax revenues, it is not the reason why now, with the state’s economy growing once again, state revenues remain below pre-recession levels. Responding to the current fiscal crisis through a shortsighted, cuts-only approach—and ignoring the fundamental problems with the state’s revenue system—will do nothing for the sound long-term fiscal stewardship of the state’s public structures.”

The report calls for broadening the personal income tax, broadening the sales tax by taxing more services, enhancing accountability and transparency, and leveling the playing field with corporate income taxes.