The General Assembly is in its last few weeks of budget discussions, with tax overhauls in mind. Three proposals are still on the table. All of them cut the corporate and individual income tax rates while expanding the sales tax to cover more services.
Alexandra Sirota of the liberal North Carolina Justice Center says that disproportionately benefits the wealthy.
"The result is when you make that shift of paying for income tax cuts by expanding the sales tax base, you're asking for more from low and middle income families," Sirota says.
Brian Balfour of the conservative Civitas Institute says cutting corporate taxes will attract more business and reduce the unemployment rate.
"When you have a tax code that makes your state uncompetitive for job creation, it's those very people - those very low-income people and people on the margins of employment - that are hurt the most," Balfour says.
The House budget expects a cut in tax revenue of $39 million in the first year while the Senate's calls for a reduction of $217 million. Lawmakers in the House are expected to pass their tax proposal tonight.