We wanted to take a moment to wish you a Happy Thanksgiving. As you sit down with your extended families over the holiday, it’s reasonable to expect that conversations may turn to worn-out arguments about the economy and taxes. In our own families, we anticipate a lot of chatter about fiscal cliffs versus slopes, the fate of the Bush Tax Cuts, and the upcoming North Carolina throwdown over the elimination of the personal and corporate income taxes. While we’re feeling pretty well armed to charge into the fray, we recognize that not everyone spends all day immersed in these issues, so we’d like to offer you some points to throw out there as you pass the gravy boat and say “yes, please” to a second – or third – piece of pecan pie.

WHEN YOUR RELATIVES SAY: “Public education in NC is a broken system and we cannot afford to keep throwing money at the problem.”

YOU SAY: If public education is so “broken” in North Carolina, why were high school graduation rates at a record high in 2012? What’s been broken is the promise in the North Carolina Constitution that requires the state to provide adequate funding and services to ensure that all students receive “the opportunity for a sound basic education.”

We’re continuing to fund public schools in NC at nearly 10% below 2008 levels. As the economy improves – and it is improving – we need to reinvest in our public schools to ensure that we can educate our kids and build a sound foundation for future economic growth.

WHEN THEY SAY: “North Carolina needs to tighten its belt and cut spending, just like families do in tough times.”

YOU SAY: Well, if that’s the case, let’s raise some funds and issue some bonds to go buy more beer! No, seriously, the state’s budget isn’t comparable to a family budget. Short of Cousin Bobby forgoing sleep in order to pick up a third minimum-wage job, families don’t have the option of raising revenue to meet their needs when those needs grow and change.

Alternately, when our family cuts back on the number of riding mowers we buy in a year, the economic impact – though real – is relatively small. But when the state cuts deep into its spending on critical infrastructure – things like environmental protections, public health, education, and transit – our communities and our economy suffer a direct and immediate hit. Instead of cutting away at the foundation of our economy, we should be collectively investing in building a stronger North Carolina, which includes fixing up our outdated and inefficient revenue system.

WHEN THEY SAY: “Lawmakers are talking about eliminating the personal income tax? Sounds like a great idea!”

YOU SAY: True, sounds awesome, but it isn’t – kinda like the earthquake machine Nikola Tesla invented that worked so well it almost destroyed New York City in 1898 (that’s a true story, believe it or not). The personal income tax provides the state with more than half of the revenue that goes to funding the schools, the courts, health care, and other vital services we all depend on. I mean, these are things we can’t just stop paying for without more or less destroying North Carolina as we know it.

If lawmakers choose to get rid of the personal income tax, they’ll either be forced to cut public programs to a level that will make all the cuts they’ve already made since the Great Recession look tiny by comparison, OR triple the state sales tax to bring in revenue at a comparable level to 2012, which is already inadequate. In addition, tripling the sales tax would shift the load to middle class taxpayers while the richest individuals and families would get a tax cut, which is probably the reason why they want to do it in the first place.

WHEN THEY SAY: “North Carolina’s tax system is to blame for the state’s lack of jobs and makes us uncompetitive with other states.”

YOU SAY: Job creation is critical to the state’s recovery, for sure. But tax rates have been demonstrated to play little role in impacting job creation. In fact, high tax states have outperformed no personal income tax states on key measures like economic growth and lower unemployment. And while North Carolina’s rates may appear high, the amount of money the state is able to bring in is low because there are so many loopholes and exemptions. Fixing these issues with our tax code and ensuring that we adequately invest in educating the workforce, building infrastructure and supporting research and development will create the conditions for businesses to create jobs.

Want more points to cover during “second dessert” and football-watching? Check out Five Ideas on Revenue Modernization for our Newly Elected Officials – they’re for you, too!

Happy Thanksgiving, everyone, and thanks for your continued support.

Russell, Rob, and Alexandra

Where: Community United Church of Christ, 814 Dixie Trail (corner of Wade Ave. & Dixie Trail), Raleigh

RSVP: To ensure that we have a sufficient amount of food, please RSVP below by COB on Thursday, 11/15.

Throughout October, Together NC and our partners will host a series of public forums entitled “North Carolina’s Worth It” to discuss the impacts of funding decisions both statewide and in local communities. In advance of these events, we partnered with Public Policy Polling to survey residents on a number of key issues in several communities where the forums will be held, as well as a separate statewide poll of voters across North Carolina.

The polls found broad disapproval among NC voters toward massive education cuts, eliminating the personal and corporate income tax, and giving large tax breaks to corporations. In addition, a majority of voters said they supported regularly reviewing, prioritizing, and eliminating tax exemptions and deductions to ensure accountability, as well as maintaining North Carolina’s Earned Income Tax Credit.

To view the full results for the 4 local polls in Buncombe, Wake, Mecklenburg, and Cumberland counties, as well as the statewide poll, click the links below:

Buncombe County
Wake County
Mecklenburg County
Cumberland County
North Carolina – Statewide

5.21.12

Together NC recently partnered with Public Policy Polling to gauge support for our newly launched revenue strategy, the “North Carolina’s Worth It“ campaign. The polling finds broad public support among North Carolina voters for raising revenue to restore budget cuts to key public services such as education, ensuring that corporations and wealthy households pay their fair share, and North Carolina’s Earned Income Tax Credit. Click here for complete polling results.