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Tax Cuts for all Tax Reform Means Savings to All NC Income Groups

17:53 16 January in Tax Reform

Executive Summary:

  • The average North Carolina household in every income category received a tax cut from the 2013 tax reform.
  • In 2015 households earning less than $25,000 will have $79 million in tax savings from the 2013 tax reform. Households earning less than $50,000 will save more than $147 million.
  • If one takes into account the full effect of tax changes made since 2011, all the result of conservative legislative action, the lowest income earners will save $157 million in 2015. The savings for all households at the bottom end of North Carolina’s income distribution, those earning less than $50,000, comes to almost $350 million.
  • The savings to all lower- and middle-income households in North Carolina earning less than $100,000 a year is more than $682 million.
  • The 2011 sales tax rate reduction, opposed by Democrats, resulted in middle- and lower-income families receiving more than twice as much in tax relief as those earning more than $100,000 a year.
  • The average household in every income group is seeing its tax burden reduced from both the 2011 sales tax reduction and the 2013 tax reform package.
  • Considering both 2011 and 2013 tax changes, the average household in both the lowest and highest income categories is receiving a tax cut of about 1 percent of income.

 

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