Dear Neighbor: Eileen Hanson-Kelly: Communities over corporations
Published 12:00 am Thursday, April 11, 2024
By Eileen Hanson-Kelly
Dear Neighbor,
Have you done your taxes yet? I tackled mine during a recent rainy weekend, just me and Turbo-Tax. It was tedious. I bet your tax experience was too, whether you did it yourself, had a digital partner, or took all your documents to a paid tax preparer. We all dread it. Now if you waited this long, you probably don’t get a refund — you know, that money you give the federal or state government every paycheck, out of which they take your required contribution to the state or federal budget, and return any left-over to you, but without any accumulated interest.
If we owe something, we probably wait to the very last minute, for fear the tax-collector will be flagging us for a penalty if we don’t pay up. Most of us would agree that everyone should pay their fair share so we can educate the next generations, drive on safe roads and bridges, have free and fair elections, have access to affordable housing and good medical care and have clean air and water.
After finally sending my federal and state forms off into cyberspace, I decided to take a look to see just what the government does with my tax dollars. I focused on N.C. state taxes. I found I paid a few hundred dollars to live in this beautiful state of North Carolina.
The rate had actually gone down a slight bit over the past few years.
I looked up the N.C. Budget and Tax Center website (www.ncbudget.org), a non-profit, non-partisan organization that analyzes fiscal and economic conditions in partnership with community leaders, based in Durham. I learned that the Legislature has set in place a plan to eliminate corporate taxes altogether by 2031 — ZERO! This will cause a loss of revenue more than $2 billion annually. Meanwhile individual tax payers would still be on the hook for about a rate of about 2.5 percent.
Who benefits from such a plan? Not our kids. North Carolina spending per pupil is already 49th in the nation. Not our teachers, many of whom have to work two or more jobs to make ends meet. Not our roads and bridges, our parks, our water or our air.
Most of that tax cut will only benefit corporate shareholders who don’t even live in the state. The wealthy get richer while the rest of us get less.
How will the state make up the difference? Will there be further cuts in our already languishing educational system? Will gasoline taxes be raised? What about sales taxes, which already is a heavy burden on low and middle income families? Plus a rise in fees (driver’s licenses and car registrations, fishing and hunting licenses), more opportunities to gamble away your hard-earned paycheck with lotteries and sports activities, more casinos in your neighborhood? I doubt the zero-tax will be a deciding point for corporations looking for places to expand their business. What would attract them is a well-educated workforce, ready to meet the challenges of the next decade, good roads and transportation networks to carry their goods, clean air and water resources, affordable housing and good medical facilities to attract and keep their workers. To get this, they have to pay their fair share.
It’s time for our state leaders to choose our communities over corporations. As tax payers, we need to speak up now! You can start by signing the petition that the N.C. Budget and Tax Center is circulating (www.ncbudget.org/choosecommunities). You can find lots of good information on its website (https://ncbudget.org/budget-taxes/). Then join with others around the state on May 2 for a Day of Advocacy to take the budget back to the people. Let your voices be heard — from Rowan County to Raleigh!
“Dear Neighbor” authors are united in a belief that civility and passion can coexist. We believe curiosity and conversation make us a better community.