The facts about N.C.’s tax reform

August 21, 2013

Lately there has been much distortion concerning changes to the North Carolina tax laws. Some have tried to “paint” Governor McCrory and the Republicans as bad guys for not having a tax-exempt weekend.

Here are the real facts: the new tax system REDUCES all personal state income taxes to a rate of 5.8 percent in 2014 and further reduces the income tax rate to 5.75 percent in 2015. Additionally the first $15,000 of income is exempt for married couples, the first $12,000 for single head of household and the first $7,500 for single tax payers. Also the new law retains state tax credit and increases it for families earning under $40,000, offers a $20,000 deduction for mortgage interest and property taxes, makes charitable contribution now 100 percent deductible, and for the first time protects ALL Social Security from state taxes. And can I also mention that North Carolina has gone from having the highest corporate rate in the Southeast to a rate of 6 percent in 2014 and 5 percent in 2015 — a 29-percent reduction in corporate taxes.

Wait, there is more — the new Republican tax law: caps gas tax, eliminates the death tax and preserves the sales tax refund for non-profit organizations. Now that is what I call tax reform that will benefit we tax payers, encourage job growth, protect seniors and encourage charitable giving. Thank you Governor McCrory and the Republican-led House. And they did all this while ADDING $400,000,000 to education. Yes — they increased education spending! These are the facts.

Pastor Bob Wells