The constitutional amendments on North Carolinians’ ballot on November 3 promise to lower taxes. They are really about a tax break for the wealthy — not for you, the author writes.
By Graig Meyer
Beacon Media
The North Carolina General Assembly laid down a challenge to North Carolinians by putting two potentially devastating and permanent constitutional amendments on this November’s ballot.
They are billed as if they are “cutting taxes” and giving you a break. And with spiraling inflation, who doesn’t want what seems like a nice little tax break right now?
Surprise, surprise… You’re just going to have to pay in other ways, because these tax breaks aren’t really for you.
These amendments will force the state and local governments to raise money through sales tax and fees on government services. We’ve already seen it in North Carolina where the state has offset income tax reductions by doing things like increasing certain car registration fees by as much as 65% for the average vehicle over the last 15 years.
If the income tax is capped, a recent analysis from the N.C. Budget and Tax Center found that the state sales tax would have to go from 4.75% to 11.51% to keep services consistent.
I also fear counties putting new fees in place for services they have to provide but could no longer afford. They will start considering fees for emergency services like fire response or EMS calls. Schools will have to bill parents for technology or books. We’ll be nickel-and-dimed to death.
Just as importantly, this would leave the state with almost no tools to make the wealthy pay their fair share. These amendments lock in low tax rates for the people with the highest incomes and the most expensive homes.
Duke Energy is the big winner of the many corporations who would love to pay less property tax. Research from the nonpartisan group Carolina Forward found that in Orange County, for example, the median homeowner would save about $45 for every cent off the property tax rate, while Duke Energy would net around $21,000 for every cent.
Why are we being asked to make this giant tax giveaway permanent via our constitution?
The amendments would lock into place former Senate leader Phil Berger’s signature plan to cut taxes on the rich. Berger lost his primary this year, and this is what he’s trying to stick all of us with as a parting gift. Locally, the voters finally realized whose side Berger is on (not theirs), and I hope North Carolinians see through the charade and reject this effort to screw the rest of us.
We should all reject any attempt to stack our tax code against regular people and use the taxes we pay to make the rich even richer. There is simply no part of what’s happening in DC or NC right now that is trying to build an economy that works for all of us. Instead, they’re ripping us off and trying to cement a system that will do so forever.
The alternative to permanent tax cuts for the wealthy should be the exact opposite: a real approach to taxing wealth paired with lower taxes for working people who depend on paychecks rather than investments. Only significant wealth taxes will end our growing inequality and fund the education system, emergency services and so much more that all of us deserve.
Vote no on the amendments, and demand a tax system that rewards work and taxes wealth.
Graig Meyer, the founder of Beacon Media and a member of its board, is a former state legislator from Orange County, N.C. He is the executive director of the N.C. Justice Center. This column is syndicated by Beacon Media and is available to republish for free on all platforms under Beacon Media’s guidelines.
