Who has really benefited from North Carolina’s income tax cuts over the past decade?
Recently the North Carolina legislature was accused of “fraudulent tax policies” by the progressive outlet NC Newsline. The accusers claimed that North Carolina’s push to cut taxes gave the wealthy tax breaks and hurt the poor.
But that’s not what the data shows. It shows that all individuals, regardless of income, received meaningful tax-cuts that put more money in their pockets.
In this week’s edition of Locke Notes, we’ll explain how tax cuts help low-income North Carolinians and make our entire state more prosperous.
It’s the Sales Tax A study by the left-leaning Institute on Taxation and Economic Policy (ITEP) gave us the following data:
The poorest North Carolinians pay 10.5 percent of their income in state tax;
The middle pay 9.3 percent;
And the top 1 percent pay only 6 percent.
But that study accounted for all state and local taxes, including sales taxes. It also ignored the impact of government benefits such as Medicaid on households’ tax burdens.
Everyone is enjoying income tax savings, particularly lower income earners.
For example, a taxpayer making $10,000-$24,999 per year would have paid around $317 in 2012, but just $209 in 2021.
Meanwhile, the state budget now has a $3 billion dollar surplus as our pro-business, pro-growth tax model attracts more individuals, families, and businesses to move to North Carolina.This boost in population is a strong indication that citizens believe NC is a state that holds opportunity for both their loved ones and themselves.
When the government lets hardworking people, like you, keep your money, all North Carolinians prosper.
Problems abound with financial reporting for legislative candidates in this year’s election. Of the 336 candidates seeking legislative office, nearly 14 percent had blatant issues with their campaign finance reports.Learn more about those problems by reading this.
The recent eclipse is a good reminder of an important but often overlooked issue with solar power. What do we rely on when the sun isn't shining? Certainly not solar!
