Maybe our friends at NC Policy Watch will do a line-by-line rebuttal to this official spin from The Master of Deceit. This was received via email by a friend from Phil Berger's spokesbot.
Dear Ms. Jones:
Thank you for your email – and for your honest feedback. Senator Berger values the opportunity to hear from constituents across the state and sincerely appreciates your taking the time to write. North Carolina’s tax code is outdated and its taxes are excessive. It’s no coincidence that North Carolina has the highest taxes in the Southeast and one of the worst employment rates in the country. States that have no income tax are the very same states that have a booming economy and job growth. States that have high income taxes are struggling.
The Tax Fairness Act is the largest tax cut in state history and gives people of all incomes more control over how much they pay in taxes. It simplifies our state’s tax code, puts more money in the pockets of hardworking families and small businesses by reducing taxes and tax rates, makes our state more competitive with neighboring states to attract new businesses and jobs, and eliminates hundreds of special interest loopholes to make North Carolina’s tax system fair to everyone. While there is a broadening of the base with regard to the sales tax – which is reduced under this plan – the total result is a major tax cut. It should also be noted that our tax reform plan does not tax monthly service and care fees for those in retirement communities.
As people are allowed to keep more of their hard-earned money, they will have more, not less, to give to churches and non-profits. And our plan does nothing to affect the federal charitable tax deduction for charitable giving, which is by far what most people are impacted by. Further, our plan caps the sales tax refund at $100,000, which allows 97.5% of non-profits to collect a full refund on their sales tax but the cost to the state will decrease from $300 million to $5 million. A non-profit would have to spend more than $2.1 million on sales tax eligible purchases to reach the $100,000 refund cap. The 250 non-profits that would be impacted are largely big businesses that behave like for-profit corporations but have organized as non-profits to avoid paying taxes. The purpose of removing the exemption is to collect some taxes from these large businesses that organized as non-profits. But these entities would still not pay income taxes or property taxes.
Once again, thank you for writing Senator Berger.
On Senator Berger’s behalf,