Advocacy group to campaign for NC tax reform

April 16, 2013

RALEIGH, N.C. (AP) -- Conservative political group Americans for Prosperity announced Tuesday a $500,000 marketing and advocacy campaign to push tax reform through the North Carolina General Assembly.


The group's North Carolina chapter will lead an effort that includes town hall meetings, grassroots organizing and advertising. The effort is meant to encourage action on a Depression-era tax code that ranks the state among the highest regionally in corporate and income taxes, said Dallas Woodhouse, state director.

Legislators from both parties have long talked about reforming the state's outdated tax code to make it more competitive.

The only comprehensive tax overhaul unveiled so far this session would lower both corporate and individual income tax rates to 6 percent. The combined local and state sales tax that most consumers pay would fall from 6.75 percent to 6.5 percent but would expand to new services that were previously exempted.

North Carolina's corporate rate of 6.9 percent and top individual rate of 7.75 percent rank among the highest in the Southeast.

Those and other figures show that North Carolina has fallen behind the times, said Lt. Gov. Dan Forest.

"I believe it is time for us to get back in the game, to make some bold moves," he added.

Americans for Prosperity will advocate specifically for a large tax cut up front that they argue will jumpstart economic growth. The group also wants sales taxes free of exemptions, the elimination of tax credits such as the earned income tax credit and reform for other taxes they say overlap.

Woodhouse said the organization will publish polling data showing that the public supports its philosophy, but he declined to reveal the source before the release. He said the group wants to keep the marketing campaign issue-based but could target specific lawmakers who don't support the group's anti-tax message.

"The plan right now is to be more positive, but I won't rule that out," he said.

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