December 13, 2021

Sometimes you have to give credit where credit’s due. So let’s start out with the WRAL website headline that stated:

How NC’s new tax cuts will save taxpayers billions

Followed by the first line of the article:

Tax cuts embedded in the new state budget will save North Carolina taxpayers more than $13 billion over the next five years.”

We typically give North Carolina’s traditionally left-leaning media a hard time for distorted articles, or for not reporting at all positive things that conservatives have done.  But kudos to Travis Fain at WRAL.com for a straightforward news article that pretty much stuck to the facts.

And those facts are good.  Yes, North Carolina taxpayers ARE getting a lot of bang for their buck with the tax cuts in the newly passed state budget.

There’s a large corporate tax cut that continues the downward move towards the eventual elimination of that tax.  And the corporate tax has gotten so low it will be a hugely attractive marketing tool for getting more good-paying jobs into the state.

But what will excite middle-class families is how the Reform Majority continues to help individuals and families with personal income taxes.  Let’s let WRAL explain:

North Carolina has a 5.25 percent state income tax rate at the moment.  That changes next year, dropping to 4.99 percent, then dropping a little more each year until it hits 3.99 percent in 2027. It’s a flat rate, so everyone who owes state income taxes pays on the same rate, regardless of income.  Assuming other states stand pat, and a future North Carolina legislature doesn’t tinker further, the Tax Foundation, a policy think tank, says these cuts will tie North Carolina with Ohio for the fourth-lowest state income tax in the nation, at least among the 41 states that have a state income tax.”

In addition – the standard deduction goes from $21,500 to $25,500 for married couples filing jointly next year.  That means a married couple won’t pay any state income taxes on their first $25,500 of income.

There are per-child deduction boosts in the plan.  And something that jumped out big to me – the immediate elimination of the tax on military veterans’ pension income – which will save veterans more than $30 million this year.

There are many savings detailed in the WRAL tax cut article and we urge you to go there and read about it.  It’s an impressive story of will and determination by conservative leaders to get the taxpayers of North Carolina the best footing possible – which is hugely important with the economic mess emanating from the political leadership in Washington as inflation skyrockets higher than its been in decades thanks to President Biden’s trillion dollar government money dumps into the American economy.

It’s a real story of comparative philosophies of government.  The shrewd fiscal conservatism of our legislative leadership here in North Carolina – epitomized by the wisdom of a $4.25 billion Rainy Day Fund versus the spendthrift liberals in Washington who toss taxpayers’ money around like Monopoly money.

When the budget including the tax cuts passed in the NC General Assembly, NC Senate Leader Phil Berger said, “This budget continues the Republican-led legislature’s decade-long commitment to low taxes and responsible spending…. The multibillion-dollar surpluses these policies helped create are evidence that they’re working, and it means we can cut taxes even more.”

Our tax cut progress has not escaped national attention.  The national Tax Foundation stated this month:  “Before the 2013 reforms, North Carolina had the highest individual and corporate income tax rates in the Southeast. Today, North Carolina has the lowest corporate rate and among the more competitive individual rates. When the 2021 reforms are fully phased in, North Carolina’s individual income tax rate will have been cut nearly in half between 2013 and 2027.”

So once again, accolades to the conservative leadership in the General Assembly for prudent management of taxpayer money.  And accolades to WRAL for that outstanding headline:

How NC’s new tax cuts will save taxpayers billions