Cutting through the tax cut malarkey

Not sure where this malarkey of “no tax cuts for middle class” “only tax cuts for the rich” is coming from.

Here’s the truth – 1,2,3

1.The reduction in North Carolina’s personal income tax rate since 2013 plus the 2016/17 zero tax bracket increase, represents a $1.123B tax cut while the sales tax base was expanded by $517M, resulting in $605M net tax cut for North Carolinians.

2. Median household income in 2014 is $43,916. In 2016 that household gets a $166 net tax saving. For 2017, that same family gets a $290 tax cut with the addition of their first $17,500 not taxed at all under the increased standard deduction. This is an average cut of course but lower income families benefit more from the increase of standard deduction because it is a greater percentage of their income.

3.  According to the latest US income numbers, North Carolina’s streak of meeting or exceeding the US per capita income growth rate has been extended for 10 consecutive quarters. That’s the best stretch of comparative income growth since 1996 – when NC reached its highest relative per capita income.

Becki Gray / Senior Vice President of Government Affairs and Outreach

Becki Gray is Senior Vice President of the John Locke Foundation. She provides information, consultation, and publications to elected officials, government staff and other dec...