If a bill proposed by Senate Republicans is successful, North Carolinians could see another tax cut in 2018.
In March, Republican leaders in the Senate introduced a two-year tax cut that would amount to about $1 billion dollars in savings for nearly all the state’s taxpayers. Under the measure, the personal income tax rate would decrease to 5.35 percent, from 5.49 percent. The standard deduction would also increase—from $17,500 to $20,000 for married couples filing jointly and from $8,750 to $10,000 for single individuals—as would the deduction for mortgage interest and property taxes, along with the existing child tax credit.
Corporate tax rates would also be cut, from 3 percent to 2.75 percent in 2018 and again to 2.5 percent in 2019.
Sens. Jerry Tillman, Andrew Brock, and Tommy Tucker, chairman for the Senate Finance Committee, said in a statement: “Instead of spending our taxpayers’ hard-earned money, this proposal puts money back into the pockets of the hardworking families and small business owners who earned it while strengthening our tools for business recruitment and job creation.” Sen. Tucker added that it’s hard to argue with a philosophy and strategy of reducing corporate taxes, given the corporations setting up shop in North Carolina because of the tax environment created.
Gov. Cooper, however, is not supportive of the proposal.
Additionally, the North Carolina Senate also approved Senate Bill 75, which would cap the state’s personal income tax rate at 5.5 percent. The measure now goes to the North Carolina House for consideration. If it passes there, a majority of voters would need to approve it in the Nov. 2018 election.