Good morning and welcome, we just wanted to give you a quick message on our take on the news that many of you got this morning on the budget, and a put it into context we wanted to say that last month almost three weeks ago today on tax day, small businesses and middle class families across North Carolina got absolutely slammed. Absolutely slammed and tax they paying more than they have paid ever before, and this morning Governor Mccoy held a press conference and took full credit for that massive tax increase in shift to the middle class. This is about priorities. It's clearer than ever before that the Republican leadership just isn't on the side of everyday North Carolinians. That needs to change. Here are the facts straight from the governor's revenue report this morning. A 57% drop in refunds this year, brought by a 20-20 giant mostly out of state corporation will get $550 million in tax breaks. The math is easy, that's $400 million of surplus that came directly out of the pockets of middle class families. Another republican leadership middle class families pay more and bake mostly out of state corporations pay less. That's just wrong but it's not new for this leadership. Since taking control of this state, the republicans have consistently prioritized the wants of billion dollar corporations and individuals making over a million dollars in annual salary, over middle class families. They have number one cut hundreds of millions of dollars from public schools, number 2, raised taxes on the vast majority of North Carolinian's and gave massive breaks to the nation's largest companies and individuals earning a $1 million are more annually. Once again it's about priorities. The republican relationship continues to build seniors, small businesses in middle class families. They are loosing sight of working in middle class families in the state, and it's time to put time in working in middle class families first again. leader whole. Thank you leader blue and thank you to everyone for coming on this important issues, there is a fundamental disconnect between our governor and the rotery that he gives out versus the reality felt by North Carolina families. There's no doubt that the national economy is improving but what about North Carolina unfortunately middle class here aren't feeling that national recovery unfortunately North Carolina is not cheering in the national Incomes are stagnant and North Carolina is falling behind while wages rises in surrounding states. Hit lines shows major importance like baobab picking other states over North Carolina. And instead of meaningful action on job creation, all we see is bizarre social legislation being debated and being passed out of Raleigh. Most importantly middle class families are paying higher taxes more than ever before. So every time the Governor holds a press conference and says, well this is some sort of North Carolina comeback, that comeback to whatever degree it exists is paid for on the backs of the middle class. All you need to know about these priority comes directly from his report today, a couple simple lines. Wages are down but tax collections went up. Wages are down but business income is up. So what does that mean? Thanks to Governor McCrory and this leadership in the legislature, people are making less money, giant corporations are keeping more of their money and middle class families are paying an enormous price it's all on the backs of the middle class so today governor McCory proved whose side he's on and it's not the North Carolina families side, is fun to put our middle class first to grow our economy from the middle out, let's focus on job creation while we have time and we're here. Our schools, let's focus on them. Let's prepare our kids for great jobs and great educations, now let's grow our economy from the middle out, that's what we need to be doing, thanks. You've any questions? The Republican were arguing that your refunds people didn't get this year or they were smaller this year, were simply smaller because of changes in withholding, true or not? Not totally true there
maybe some technological explanations about changes and withholding but one thing is for sure, on April 15th people realize that they were paying more taxes than they had paid before, it doesn't take a lot of stretch to understand that when you eliminate text deductions for small businesses, as was done in 2013, taking away the small business tax deduction on the first $50, 00 made that you want to collect more money and what these revenues that were reported today show is that you did collect more money because you're taxing people out of much higher level then you've historically have taxed them. And that applies to all of these stories that you've covered many of you about how was shocked. They're playing a noble cause, they no longer get their medical deductions, and those sort of things that have led to greater receipt as as of April 15th when people file their taxes or at least the deadline for filing taxes, and now we see it in the number that are coming through, $400 million more then we expect it to collect and that coming out of the pocket of the middle and working class citizens of the state. Don't you think that some of this personal income tax collections is a result of basically people who have been investing dividend's capital gain and is paying more, and it's seem like they are paying, I'm not saying what share is the right share but it seem like they are paying more shares because they're benefiting from, I guess what I'm getting at is you can't actually say that all this income increases is a result of putting it in middle class families. No no not all of it, but there in lies another problem some of it may have been cause by what we describe as we describe as fiscal clear, the people might be selling stock there are interested in business and stuff and now would be an appropriate time to do it and if that's the case, then it puts us in a situation of that one time income and we make the mistake of thinking that it's recurring and start instituting policies and spend money again, without knowing we are digging a deeper hole next year, it's not fiscally responsible to do that if that is the case, we need to know what all the components are and this additional revenue but I'm just saying large 40, 000 foot views of it, would be explained by saying that there is a big change in the amount of taxes that individual are paying, because we know that individuals pay more taxes, that's what they told us on April 15th. And I think that the numbers are coming in to basically verify what people feel intuitively and now we have data to support it but what we have to do before we really see what the full picture is, is do an end up analysis of personal income tax returns over the last couple of years, compare it with what is happening on this and several other measures so that we can pretty I think I can conclusively say where this additional revenue totally came from, The other thing and you may want to look at it, where are we going to be is this sustainable? Again is this a one time shot? Is this sustainable? With all the figures indicated we getting ready to go down a slide if we stay on this particular payoff. So, we know one time one off but as you go forward you see in their own estimations and projection two, three, four, five years from now the losses we have are going to be built into this economy, and again the middle class families are going to suffer as they are suffering today and as that gets worse they'll pay more taxes, and they're separable as these additional kickers start to take effect. Do you think those corporate [xx] will should be allowed to go into effect the ones that are automatically triggered? I don't think so until we get better information than what we have here again realizing that most of this cuts were shifts the taxes that this corporations mostly were paying are being picked up by working middle income, middle class families. So generally I don't think they ought to go in effect but clearly they are not going to effect based on what we know about this numbers at this point. The case has not been made compelling enough for us to take that kind of radical shift into further reducing the revenue available for our schools primarily and to ensure that kids are getting textbooks, ensure that we are paying teachers decent wage, ensure that we're creating an educational environment so our kids can achieve, as well as the other real problems that have been built-in the budgets we passed over the last couple of [xx]. So again it goes back to that sustainability question, is already projected, this is not sustainable, it's on the backs of middle class they cannot continue to sustain us and now
we're going to have additional cut just going to put more burden on them. Job growth is stagnant so how do we continue to do this? The middle class and folks are going to continue to pay more and more of the burden based on this, and we've already said this is not sustainable, it's no fare, and it's not based on a long period of time. This is a snap shot to say okay if I make over to this line then I get a benefit, what about the rest of North Carolina? What about the working families? What do they get out of this when these tax comes? They get a bigger burden, that's not sustainable for them, there's stagnant job growth and we know what that results to, more and more people, out of work on the [xx] really just in bad shape here in North Carolina, and quite frankly a lot of corporations aren't going to want to come to that kind of of North Carolina. Thank you all so much my actual deed? I didn't remember. Remember? Yeah, both of us take a look at a Million Dollar subject. Good, you? No, the sound is wired. It was destroyed more room. More what? What did you get? [xx] you want this one Yes sir.