Add Row

Add Element

update

Kozi Checks & Balances
Media Site Home

update

Add Element

Categories

Add Row

Add Element

update

Kozi Checks & Balances TaxTactics News

update

March 24.2025

2 Minutes Read

Examining North Carolina's Tax Proposal: Will It Truly Help Workers?

North Carolina Capitol building at night with statue, related to tax proposal.

North Carolina's Bold Tax Proposal: A Closer Look

As North Carolina’s House Bill 11 gains momentum, it sparks discussions around tax fairness and equity. The bill, which aims to exempt income taxes on tips, overtime, and certain bonuses, mirrors strategies previously championed by former President Trump. Proponents argue that this will provide much-needed relief for workers in the service industry, but the implications of such a move raise important questions.

Understanding the Impact on Workers

House Bill 11 targets tipped workers like waitstaff and hairstylists, claiming to assist those struggling with their finances. However, only about 125,000 out of 4.9 million workers in the state are in jobs where tipping is customary. This narrow focus overlooks a substantial segment of low-income earners who may not benefit from this tax exemption. For instance, many hardworking North Carolinians who earn a fixed salary or work set hours could end up facing increased tax burdens, creating a situation of unfairness without justification.

Economic Consequences of Favoritism in Tax Policies

A key issue arises when comparing the financial scenarios of two individuals: Tracy, a secretary earning her income solely from wages, and Bob, a waiter who earns a combination of wages and tips. If HB 11 passes, while Tracy’s tax burden remains unchanged, Bob could see a significant reduction in his tax liability, making his situation much more financially favorable. Such preferential treatment not only creates disparities among workers but also disrupts the tax balance necessary for a fair economy.

Looking Ahead: The Risks and Rewards

While the intention behind HB 11 might be to support struggling workers, it risks becoming a flawed policy that rewards certain income types over others arbitrarily. The potential consequences could include a less equitable tax system that inadvertently harms those it aims to help. As this bill progresses, North Carolinians must consider the broader implications of such tax changes, balancing immediate aid with long-term economic health.

Payroll Taxes

0 Comments

Write A Comment

Related Posts All Posts

02.21.2026

Supreme Court Ruling on Tariffs: What This Means For American Businesses

Update Supreme Court Delivers Groundbreaking Tariff RulingOn February 20, 2026, the Supreme Court made a historic decision that sent ripples through the economic landscape by ruling that President Donald Trump acted beyond his authority in imposing tariffs using the International Emergency Economic Powers Act (IEEPA). This move has been described as a significant blow to Trump's economic policies and a key moment in the balancing of powers between the presidency and Congress.The Impact of the Ruling on American TaxpayersThe verdict effectively nullified Trump's IEEPA tariffs, which had amassed over $160 billion since their inception and projected to generate an astonishing $1.4 trillion from 2026 through 2035. By striking down these tariffs, the Supreme Court has shielded taxpayers from a substantial tax increase while preventing a long-term contraction in the U.S. economy estimated at 0.3 percent, reflecting concern around additional burdens on households and businesses that would have arisen from higher costs on imported goods.What Are IEEPA Tariffs?The tariffs in question included various border security and fentanyl initiatives targeting imports primarily from China, Mexico, and Canada, with rates ranging from 10% to 35%. These measures were unprecedented, marking the first usage of IEEPA for imposing tariffs, raising questions about the limits of presidential powers under emergency conditions. As Chief Justice John Roberts noted, there was no explicit statute allowing such tariff authority to be wielded without clear congressional consent.Voices from the Business CommunityThe ruling has been met with relief from various business owners who argued that the tariffs constituted unlawful overreach. Victor Schwartz, a New York-based importer, summed it up perfectly when he described the tariffs as “arbitrary and unpredictable,” praising the court for recognizing them as unconstitutional. Many businesses and small manufacturers, part of lawsuits against the government, are eager to secure refunds for tariffs already paid and restore financial stability.What Lies Ahead for U.S. Trade?While the Supreme Court’s ruling marks a temporary victory for economic principles and fairness, uncertainties linger. Trump has hinted at pursuing alternative avenues under different trade laws, leading analysts to speculate about upcoming policies. The landscape may still shift as the Biden administration faces challenges in navigating its own trade strategies while grappling with a divided public opinion regarding tariffs and trade.The Supreme Court's decision highlights the ongoing importance of checks and balances within our government. For citizens and business owners alike, staying informed is crucial as we navigate these changes together. The economic landscape is adapted not just by rulings in court but by active participation and engagement in community discussion about what our trade policies mean for our everyday lives.

02.20.2026

Navigating Alternative Tobacco Product Taxes: What to Expect This Year

Update Changing Landscape of Tobacco Products In 2026, consumers can expect a surge of choices in alternatives to traditional tobacco products. With a notable departure from combustible cigarettes, oral pouches, vapes, and heated tobacco products (HTPs) are now receiving approval from the Food and Drug Administration (FDA) for sale in the U.S. This shift represents a significant change in how nicotine is consumed, with newer products promising reduced harm compared to conventional cigarettes. The Challenge of Taxation This newfound accessibility comes with complex considerations for taxation. While states have established rules for taxing cigarettes, the emergence of alternative tobacco products (ATPs) complicates matters. Many ATPs, such as e-cigarettes and oral pouches, do not contain tobacco, thus falling outside the traditional tax framework. HTPs, which do contain tobacco, pose their own challenges as state governments weigh the implications of taxing less harmful alternatives at the same rate as more harmful products. Current State of Tax Legislation As we enter 2026, many states are contemplating or enacting new tax bills focused on ATPs. For instance, Delaware Governor Matt Meyer has proposed increasing taxes on vapor products to $0.10 per milliliter. Meanwhile, Nebraska’s LB 1238 seeks to standardize the excise tax across various nicotine products at 30% of wholesale costs, potentially marking a tax hike for ATPs. New York is also working to expand its definition of OTPs, which could lead to notable tax increases for modern oral pouches. Funding Public Health Initiatives Increasing taxes on tobacco products not only contributes to state revenues but can also play a crucial role in funding essential public health programs. A report highlighted the benefits of raising tobacco taxes by $1.50 per pack, projecting that states could collectively prevent hundreds of thousands of youths from starting to smoke and help millions of adults quit. Moreover, the revenue generated could support programs aimed at educating the public about the risks of tobacco use. Future Predictions for ATP Taxation The landscape of alternative tobacco product taxation is poised to evolve rapidly as states adapt to these new products. Policymakers are encouraged to consider tiered tax structures that reflect the relative harm of different products, which could incentivize consumers to make healthier choices. As the market for ATPs continues to grow, aligning tax policies with public health goals will be essential for minimizing the health risks associated with tobacco use. The discussions surrounding ATP taxation are critical in shaping a healthier future. Engaging in these conversations can lead to more informed and balanced public policies that address both revenue generation and health improvements.

02.19.2026

Exploring European Geoeconomics: The Future of International Tax Policy

Update Understanding Geoeconomics: Europe's Strategic Shift As the world grapples with complex economic challenges, Europe is navigating its own path under increased pressure from global powers. In a recent speech, European Commission President Ursula von der Leyen stated the necessity for Europe to adopt a 'new mindset' in response to economic coercion from nations like China, Russia, and the U.S. This reflects a shift towards leveraging Europe’s geoeconomic weight, encouraging a more cohesive approach to international trade and tax policy. The Impact of Geoeconomics on International Relations This new era of geoeconomics highlights the interplay between economic strategy and international relations. The EU aims to redefine its policies to influence global standards, seen through initiatives like the Carbon Border Adjustment Mechanism (CBAM) and digital services taxes (DST). These policies are not just protective measures but are strategically designed to reshape global economic interactions to align with European standards, encouraging other nations to adopt similar frameworks. Challenges and Opportunities Ahead However, Europe's ambitions face significant challenges. The reaction from the United States, particularly under recent administrations, has often involved threats of tariffs and retaliatory measures against perceived unfair treatment of American companies. This tension raises a critical question: Is the cost of implementing such a geoeconomic strategy outweighed by its potential benefits? The path forward requires balancing these strategies with the realities of their economic impact on consumers and businesses within Europe. The Need for Renewed Focus on Domestic Growth As von der Leyen emphasized, Europe must also prioritize its internal economic health. A renewed commitment to strengthening domestic economies could provide the foundation necessary for a robust external strategy. By ensuring that local industries thrive, Europe can better position itself on the global stage. This intertwined relationship between domestic prosperity and international influence is crucial in crafting future tax policies that work for all member states. Final Thoughts on Geoeconomic Policy In conclusion, Europe’s journey towards employing its geoeconomic power offers valuable lessons for both policymakers and economists. As countries maneuver through rising tensions and shifting alliances, the focus should ultimately be on sustainable growth that benefits local communities and strengthens the transatlantic relationship. By acknowledging the interconnectedness of domestic and international economies, Europe can lead in redefining what it means to play a dominant role in global economics. If you are interested in understanding how these developments in European geoeconomics could affect international tax policies and trade relationships, stay engaged with ongoing discussions and analyses in this dynamic field.

Examining North Carolina's Tax Proposal: Will It Truly Help Workers?

North Carolina's Bold Tax Proposal: A Closer Look

Understanding the Impact on Workers

Economic Consequences of Favoritism in Tax Policies

Looking Ahead: The Risks and Rewards

Terms of Service

Privacy Policy

Core Modal Title