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 taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. 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.
Share this article