North Carolina republicans have ‘reformed’, and are tickled to death about the state’s tax system. Some of the changes shown on the Citizens for Tax Justice website are as follows. The richest taxpayers in North Carolina, with average incomes of nearly $1 million, will see their state and local taxes drop by 1.2%, an average cut of more than $10,000. The top 5% of taxpayers are the beneficiaries of almost 90% of the net tax cut from the combined changes to the personal and corporate income taxes, sales taxes, and the change in tax treatment of electricity, natural gas, and entertainment. The state’s own bean counters revealed that losers include some low and middle income families who currently benefit from the $50,000 business income pass-through deduction, families with significant deductible medical expenses and other itemized deductions and some elderly families who lose retirement benefits, among others. The many low-and moderate-income working families will lose the benefit of a refundable state EITC (set to expire after this year and not extended under this plan), the plan actually hikes taxes on the bottom 80 percent of taxpayers on average. North Carolina’s tax system will become even more upside down, with the bottom 20% of taxpayers paying on average 9.2 percent of their income in state and local taxes while the top 1% will be paying only 5.7%. Under the current system (with a state EITC in place), the bottom 20% pay 8.9 percent and the top 1% pay 6.5%.
Posted on: Mon, 30 Sep 2013 20:29:36 +0000
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