Some of the most substantial deductions in the federal tax code are the itemized deductions for state and local income, sales, and real estate taxes. This map shows the variation, by county, in the amounts of...
- The Tax Policy Blog
- North Carolina Reportedly Reaches Budget Deal
North Carolina Reportedly Reaches Budget Deal
After rejecting spending cuts in favor of finding a way to raise $990 million in new taxes, and then rejecting base broadening in favor of hiking rates on narrow bases, then rejecting that, the powers-that-be in North Carolina have decided to follow the trend of targeting "millionaires" (now defined as those making $60,000 or more):
That plan places a 2 percent surcharge on individuals making more than $60,000 or couples making more than $100,000. And it places a 3 percent surcharge on individuals making more than $150,000 and couples whose taxable income is more than $250,000.
For example, a couple earning $250,000 will have to figure out their current tax liability and then pay 103% of it.
Also included in the budget deal is hiking the state sales tax rate by 1 percentage point.
More reliance on high-income earners means more volatility, meaning bigger shortfalls down the road.
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