Lately there has been much distortion concerning changes to the North Carolina tax laws. Some have tried to “paint” Governor McCrory and the Republicans as bad guys for not having a tax-exempt weekend.
Here are the real facts: the new tax system REDUCES all personal state income taxes to a rate of 5.8 percent in 2014 and further reduces the income tax rate to 5.75 percent in 2015. Additionally the first $15,000 of income is exempt for married couples, the first $12,000 for single head of household and the first $7,500 for single tax payers. Also the new law retains state tax credit and increases it for families earning under $40,000, offers a $20,000 deduction for mortgage interest and property taxes, makes charitable contribution now 100 percent deductible, and for the first time protects ALL Social Security from state taxes. And can I also mention that North Carolina has gone from having the highest corporate rate in the Southeast to a rate of 6 percent in 2014 and 5 percent in 2015 — a 29-percent reduction in corporate taxes.
Wait, there is more — the new Republican tax law: caps gas tax, eliminates the death tax and preserves the sales tax refund for non-profit organizations. Now that is what I call tax reform that will benefit we tax payers, encourage job growth, protect seniors and encourage charitable giving. Thank you Governor McCrory and the Republican-led House. And they did all this while ADDING $400,000,000 to education. Yes — they increased education spending! These are the facts.
Pastor Bob Wells