North Carolina Reportedly Reaches Budget Deal

 
 
August 03, 2009

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.

More on North Carolina here and here.

Buy this blogger a cup of coffee!

Sizes

Follow Us

About the Tax Policy Blog

Subscribe to Tax Foundation - Tax Foundation's Tax Policy Blog The Tax Policy Blog is the official weblog of the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. Our economists welcome your feedback. If you would like to send an e-mail to the author of a blog post, please click on that person's name to locate his or her e-mail address or visit our staff page here.

Monthly Archive

Privacy Policy