ICYMI: North Carolina Legislature Unveils Tax-Cutting Budget
Via Americans for Tax Reform –
North Carolina legislators unveiled a complete budget agreement this afternoon that includes further tax relief for North Carolinians. After months of negotiations, legislative leadership reached an agreement that they will hold votes on later this week, ahead of the Friday deadline by which they must either pass a continuing resolution or approve a final budget.
The budget deal announced by House and Senate leaders includes reforms that will allow individuals, families, and employers across North Carolina to keep more of their earnings. The budget agreement announced today, if approved by Gov. Pat McCrory (R), reduces the individual income tax rate from 5.75 percent to 5.499 percent in 2017. This income tax cut will result in $2.8 billion in taxpayer savings over the next five years.
Beginning in January 2016, in accordance with the tax reform package approved by North Carolina lawmakers in 2013, the corporate tax rate will drop from 5 percent to 4 percent. Under the budget agreement released today by Senate President Phil Berger and Speaker Tim Moore, the trigger on further corporate rate reduction was repealed and replaced with language guaranteeing that the state corporate income tax will definitely drop to 3 percent.
“I applaud Senate President Phil Berger and Speaker Moore for reaching a budget deal that allows taxpayers to keep more of their hard-earned income, and state government lives within its means,” said Grover Norquist, president of Americans for Tax Reform. “The new budget deal unveiled in Raleigh today, if signed into law, will build upon the successful tax reform act of 2013 and will ensure the North Carolina remains a national leader in tax reform.”