It took awhile. But taxpayers were winners in the new state budget.
Check out these victories.
A higher standard deduction for every income taxpayer, a 4% rate cut for all income taxpayers and restoration of the deduction for medical expenses. That’s a half billion dollars in tax reduction for individuals and families.
For employers, an important reform will modify corporate tax to recognize the single sales factor. A key item in Governor McCrory’s economic development agenda, this reform makes North Carolina more attractive for large manufacturing plants and aligns our business tax code with neighboring states. The single sales factor reform saves $30 million.
The new budget also puts $600 million into savings reserves for infrastructure repairs and a rainy day. Given the lack of an economic growth policy in Washington, the Legislature was prudent to prepare for the possibility of a national recession.
So who lost in the budget? The newspapers who predicted tax cuts passed in 2013 would throw the state into a deficit. Instead, with our supercharged economy creating jobs nearly 30% faster than the rest of the nation, state government wound up the fiscal year with a $445 million budget surplus.
But bad judgment by left-wing editorial writers isn’t anything new.