North Carolina's Tax Reform Benefits All Income Groups
The John Locke Foundation released a new report today highlighting how North Carolina’s tax reform package of 2013 will provide relief to taxpayers of all income levels.
The key findings of the report are as follows:
- The average North Carolina family will see their tax burden reduced thanks to the 2013 tax reform act, no matter what tax bracket they fall into
- In 2015, households earning less than $25,000 will save a total of $79 million and those earning less than $50,000 will save $147 million
- Those of the lowest income bracket (earning around $12,500 or so) will see their taxes go down by about $135 in 2015
The John Locke Foundation Roy Cordato explains how the 2013 tax reform act isn’t the only tax relief provided by North Carolina Republicans:
"Much of today's political debate focuses solely on the latest tax reform legislation, as if lawmakers made their decisions about those reforms in a vacuum," Cordato said. "But that makes no sense. The tax reform law adopted in 2013 followed Republicans' important decision in 2011 to reject Democrats' efforts to keep a higher state sales tax rate in place. Taxpayers benefit greatly from both of these decisions from the Republican-led General Assembly."
By preventing Gov. Perdue and legislative Democrats’ attempt to maintain a higher sales tax, Senator Phil Berger, Speaker Thom Tilliis, and the rest of the Republican caucus in the NC Senate & House provide $350 million in tax relief to low and middle income households.
This new study by John Locke is important because it debunks the biggest canard being told by North Carolina Democrats, which is that the 2013 tax reform bill only benefits the rich. This new report lays waste to that falsehood.