North Carolina

North Carolina Senate Passes Nation’s Lowest Flat Tax, Blocks Cap-And-Trade

Published

1 year ago

May 23, 2023

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North Carolina Senate Passes Nation’s Lowest Flat Tax, Blocks Cap-And-Trade

NC flat

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Lawmakers in North Carolina, the state that has been an inspiration and model for tax reform efforts in so many other states, are once again taking action to make their tax code even less burdensome and more conducive to job creation. On May 18, the North Carolina Senate passed a new budget that speeds up already-codified income tax relief and schedules further rate reduction, bringing the state income tax rate down to 2.49% by the end of the decade.

As the latest example of significant tax relief receiving bipartisan support, more than a third of Democratic caucus in the North Carolina Senate voted for this new budget, which would give North Carolina the lowest flat income tax rate in the nation, a title currently held by Arizona’s 2.5% flat tax. North Carolina already has the lowest corporate income tax in the nation and that tax will be phased out entirely by 2030.

Governor Roy Cooper (D) released an executive budget earlier this year that would halt the phaseout of the North Carolina’s corporate tax. As expected, that proposal was rejected by the General Assembly, where Republicans now hold supermajorities in both the Senate and House thanks to the party switch announced by Representative Trisha Cotham (R) last month.

The North Carolina House passed their version of the budget in April, which speeds up already scheduled income tax rate reduction that was approved as part of the budget signed into law in November 2021. Aside from the income tax relief, there are other parts of the House and Senate-passed versions of the budget that conservatives will like. Both the House and Senate budgets, for example, would protect North Carolinians against efforts to impose a cap-and-trade program for carbon emissions with a provision stipulating that “No state agency, governor, or the Department of Environmental Quality, may require certain public utilities to engage in carbon offset programs.”

Critics of cap-and-trade point out that it has the same effect as a carbon tax, resulting in higher gas prices and utility bills. Cap-and-trade is part of the reason why the price of gasoline in California is typically much higher than the national average. The inflationary effect cap-and-trade has on the price of gas is also a key reason why the Transportation and Climate Initiative (TCI), a proposed regional cap-and-trade program focused on transportation emissions, folded after receiving a cold reception from lawmakers in every blue state where it was pitched save for Massachusetts. That did not deter Governor Cooper’s administration from voicing support for TCI.

The move to block imposition of cap-and-trade without legislative approval in North Carolina follows a series of cap-and-trade-related developments in other parts of the country. Governor Glenn Youngkin (R) is now working to remove Virginia from the Regional Greenhouse Gas Initiative (RGGI), another regional cap-and-trade program, because of the inflationary effect it has on utility bills. Meanwhile in New York, Governor Kathy Hochul (D) recently authorized a new cap-and-trade program as part of the $229 billion budget signed into law in early May.

Governor Hochul tasked the state Department of Environmental Conservation and the New York State Energy Research and Development Authority with studying the potential effects that cap-and-trade would have on energy prices in New York. They found that cap-and-trade could inflate the price of a gas by 62-cents per gallon and raise the cost of natural gas by 80%, which would adversely affect the 60% of New Yorkers who heat their homes with gas.

“We began running the numbers on that, based on some of the metrics being used by Washington state and some of our own, and revealed some…potentially extraordinary costs affiliated with the program,” New York Department of Environmental Conservation Commissioner Basil Seggos said about the potential effect of cap-and-trade back in April.

“New York’s budget outlined broad details about how the revenues would be spent, creating a ‘climate action fund’ that would direct two-thirds of revenues toward ‘transitioning to a less carbon-intensive economy,’ while channeling other money to ‘industry small businesses’ and consumers,” Energy & Environmental News reported about the Empire State’s cap-and-trade program. “But the state still has to hash out which polluters will be able to buy allowances and contribute revenues to the program — a question that promises to be highly contentious.”

Though TCI has ceased to exist and details for the implementation of New York’s cap-and-trade program are not expected to be released until later this summer, RGGI is still alive and Governor Cooper has signaled his interest in the possibility of having North Carolina be a part of that cap-and-trade pact. In 2021, a spokesman for Governor Cooper confirmed that joining RGGI “is a policy option under consideration.” Under the cap-and-trade-blocking provision in the state House and Senate-passed budgets, however, Governor Cooper can consider joining a regional cap-and-trade program as much as he wants, but he and any future governor must get approval from the General Assembly in order to impose such a policy in North Carolina.

A conference committee will soon convene to hash out the differences between the House and Senate budgets over the next few weeks. The following chart from the John Locke Foundation, a Raleigh-based think tank, illustrates some of the key differences between the North Carolina House and Senate budgets.

North Carolina Proposed Personal Income Tax Rates, 2023-2030

John Locke Foundation

The details of the final North Carolina budget deal won’t be public until the conference committee releases them, which will likely occur in June. Yet Governor Cooper already knows he’s likely to receive a new budget that includes additional income tax relief he does not want, proceeds with the corporate tax phaseout that he has asked to halt, and prevents him from implementing cap-and-trade in North Carolina.

Despite all that, there are two key reasons why Governor Cooper may still end up signing the budget that the GOP-run General Assembly sends to him. The first is that he knows his veto will be overridden. The second is that Medicaid expansion, which has long been a top priority for Cooper, is contingent upon enactment of this new budget. As such, by July 4, North Carolina could be on track to have a 2.49% flat personal income tax and no corporate tax by the end of this decade.

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North Carolina

Effingham local plans fundraiser for Helene victims in North Carolina

Published

1 hour ago

November 2, 2024

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Effingham local plans fundraiser for Helene victims in North Carolina

SAVANNAH, Ga. (WTOC) – It’s been just over a month since states across the southeast were hit by hurricane Helene, including Georgia. One of the hardest hits states, however, was North Carolina.

A woman from Effingham has been doing her best to help those in need by gathering supplies and taking them to storm torn areas.

WTOC spoke with the Georgia local to learn more about the work she’s been doing.

Our team originally spoke with Angela Miller before she made her first trip up to North Carolina after the hurricane. Since then, her and her family have made two trips to cities like Swanannoa. Their third trip is already planned for next weekend.

Miller immediately began collecting donations for storm victims, and she took a huge load to North Carolina the first weekend after Helene passed through.

Miller says during both trips she‘s made so far, the communities’ perseverance was inspiring.

“You know, you just don’t understand how these people just can smile and give you a hug and then turn around and walk into their house and there’s no electricity. They have no food. You know, they can’t get out of their house because they can’t go further if they don’t have somebody to help them,” said Miller. “The pictures just don’t do it justice. I mean it just like you know, oh well that’s kind of what happened. No, it’s split houses in half.”

The group of volunteers that Miller was with passed out over 500 meals to those still in the area.

To help gather more supplies for storm victims, they’re throwing a fundraiser at a local restaurant in Savannah.

A friend of Miller’s who works at Midtown Bar and Grill on Habersham reached out wanting to help the people in North Carolina.

The restaurant will be open and accepting donations today beginning at 2:30 p.m.

Miller has lists of what items people can bring on Facebook, including gift cards to Lowes or Home Depot for material supplies to help rebuild in areas that were completely destroyed.

Miller says the outpouring of support from her own Georgia community has been a blessing.

“You know we had our own devastation in Georgia, and I have been very, very blessed and very just overwhelmed with the amount of help that people, I mean, I have had donation, donation…The community is good,” said Miller.

All the donations collected during the fundraiser will be loaded up and taken with Miller on her next trip to Swanannoa.

Amy Moore, who owns Simply Southern in Springfield, will also be making the trip with Miller to pass out meals to those in need.

If you’re not able to make it out to Midtown Bar and Grill but would still like to make a donation, Miller says you can reach out to her anytime.

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North Carolina

East Carteret HS donating football ticket sales to Western North Carolina

Published

12 hours ago

November 1, 2024

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East Carteret HS donating football ticket sales to Western North Carolina

CARTERET COUNTY, N.C. (WITN) – As flag twirlers rehearse for Friday’s senior night football match against Southside High School, East Carteret High School is also preparing for a great cause.

100% of Friday night’s ticket sales will be donated to support Buncombe County Schools, which were severely impacted by Hurricane Helene.

East Carteret High School Cheer Captain and Student Body President Savannah Tyndall expressed her gratitude for the support they received during previous hurricanes and the tragic plane crash in 2022.

Now it’s their turn to give back, she says.

“We can’t pay back these families or these kids education that they lost…but we can give them the funding to try to rebuild and help in whatever ways they need,” says Tyndall.

East Carteret High School Principal Jay Westbrook says everyone was excited when they decided to donate the funds to Buncombe County.

He says he knew what to do when he called Buncombe County’s school superintendent.

“So I reached out to Dr. Jackson and it was a Saturday morning and I could tell there was a tremendous need of help because I know him very well,” says Westbrook.

Dr. Rob Jackson is no stranger to East Carteret High because he used to be the Carteret County School superintendent before moving back home to Buncombe County and becoming the superintendent there.

Westbrook says he wanted to help out as much as he could for a friend who helped him during previous tragic events.

Dr. Jackson says he is more than grateful to see the outpour of support for an area hit hard.

“Donations through our education foundation allows us to meet the needs of our students and their families and our staff members that have lost a home, a car, or where floods occurred and where many literally lost everything,” says Dr. Jackson.

Westbrook says East Carteret High School is mainly collecting monetary funds so they can be distributed to where it’s needed the most.

Tickets for the game are $8.00 each. Donations will also be accepted at the entry gate.

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North Carolina

Several North Carolina state parks reopening after Helene

Published

21 hours ago

November 1, 2024

Press Room

Several North Carolina state parks reopening after Helene

CHARLOTTE, N.C. (AXIOS) – Multiple state parks across western North Carolina were reopening, at least partially, on Nov. 1.

State parks west of I-77 have been closed for weeks due to Hurricane Helene.

Why it matters: State parks are a major draw to western North Carolina. They provide miles of hiking trails for visitors to explore, especially during the fall as people travel to witness leaves change color.

State of play: Crowders Mountain, Gorges, Grandfather Mountain and Lake Norman state parks, plus Rendezvous Mountain will reopen on Nov. 1, the Division of Parks and Recreation announced Wednesday.

What to expect: Keep in mind, some state parks may only be partially open and others remain closed due to hazardous trees and branches, unsteady bridges and washed-out trails. Here’s what to expect at parks reopening Friday:

Crowders Mountain State Park

Trails and day-use from 8 a.m.-6 p.m. will reopen. Camping, however, remains closed through November.

Look for the Charlotte skyline on a clear day.

Distance: 45 minutes from Charlotte; 3 hours 18 minutes from Raleigh

Crowders Mountain(Ashley Mahoney/Axios)

Charlotte skyline view from Crowders Mountain.(Ashley Mahoney/Axios)

Gorges State Park

Grassy Ridge access at 976 Grassy Ridge Road, Sapphire, North Carolina will reopen, including the visitor center, trails to Rainbow and Upper Bearwallow Falls, plus RV, trailer, tent camping and cabins.

The backcountry area, including Frozen Creek access, Auger Hole and Canebrake trails, plus backcountry campsites, will remain closed.

Distance: 3 hours from Charlotte; 5 hours from Raleigh

Grandfather Mountain State Park

Most trails and campsites here will reopen. Profile trail, Profile Connector trail and Profile campsite, however, will remain closed

Distance: 2 hours 15 minutes from Charlotte; 3 hours 40 minutes from Raleigh

Lake Norman State Park

Day-use, tent, trailer, RV and campsites will reopen.

Cabins are closed to new reservations, but existing reservations will be honored.
Some mountain bike trail sections may be closed.
Distance: 50 minutes from Charlotte; 2.5 hours from Raleigh

Rendezvous Mountain

All areas of Rendezvous Mountain (1956 Rendezvous Mountain Road, Purlear, North Carolina) will reopen.

Distance: 1 hour 50 minutes from Charlotte; 2 hours 48 minutes from Raleigh

Parks that remain closed:

Zoom in: Chimney Rock, Mount Mitchell and South Mountains are expected to be closed longer than others. Campsite reservations at state parks that are closed or expect to be closed at the time of the reservation have been refunded, per the Division of Parks and Recreation.

What’s next: Some parks may partially reopen in November, according to State Parks Director Brian Strong.

What they’re saying: “We know our visitors have been missing our closed parks, and we hope these reopenings will help our neighbors, local towns, and communities,” Strong said in a statement.

This story from Axios Charlotte was published as part of a partnership.

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